An option deal with Consolidated Ramrod Gold (TSE) will provide funds for further work on the Elmore property of Atlanta Gold (TSE).
Ramrod can earn a 51% interest in the Idaho property by spending US$9.5 million by May 30, 1997. The deal calls for the company to complete an initial phase of work at a cost of US$2.5 million by May 30, 1995. The 3,000-acre property is 60 miles east-northeast of Boise, Idaho, and contains two proven open-pit deposits.
The deposits are associated with a gold-silver-mineralized shear structure which has been mined periodically from underground, dating back to the 1800s. One of the pit deposits contains an estimated 8.3 million tons grading 0.08 oz. gold and 0.24 oz. silver per ton, while the other hosts about 6.2 million tons at 0.049 oz. gold and 0.088 oz. silver.
A further underground geological resource is estimated at 800,000 tons grading 0.34 oz. gold.
Ramrod plans to expand and develop the underground resource through a first-phase US$2.5-million exploration program. This will include underground development to establish drill stations, underground and surface drilling, and metallurgical test work.
The second phase will include a final feasibility study for both the open-pit and underground deposits.
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