Northern Crown adds to Mexican holdings

By acquiring an option on the 2,200-hectare Mesa property in Sonora state, Northern Crown Mines (VSE) has added to its holdings in Mexico.

To earn the interest, the company must pay US$225,000 over five years, with the vendors retaining a 2% net smelter royalty.

Preliminary exploration has identified four zones of gold-silver mineralization within an extensive area of alteration measuring about 2×5 km. On the CB zone, in the centre of the property, samples of a stockpile mined from an open cut averaged two grams gold and 232 grams silver per tonne. The LB zone, 700 metres northwest of CB, includes a prominent hill of intensely silicified volcanic rocks measuring 300 sq. metres. Limited mining from a short shaft on the hill produced grades of three grams gold and 400 grams silver while chips nearby returned an average of 1.84 grams gold and 228 grams silver over 105 metres.

Halfway between LB and CB, small-scale underground mining on the ACB zone produced several thousand tons grading two grams gold and 300 grams silver. On the CDO zone, in the northeastern portion of Mesa, initial sampling yielded values of up to 2.5 grams gold over 29.9 metres while streams draining the area are reported to have produced abundant gold for local placer miners.

Further exploration is to begin in September, with drilling proposed for later in the year.

Northern Crown has 5.4 million shares outstanding and is completing a $750,000 private placement priced at $1 per share.