An exploration program by Hemlo Gold Mines (TSE) will test the overall potential of a land package encompassing the past-producing Liberty Bell gold mine, 80 miles south of Fairbanks, Alaska.
Historic production from the underground mine is reported to be 8,400 oz. from 17,500 tons of ore.
Hemlo can earn a 50% joint-venture interest in the property by spending $2 million, making advanced minimum royalty payments and keeping the claims in good standing.
The land package is held by a private company which is being acquired by September Resources (VSE), a member of the Prime Equities International group. September will issue 6.1 million shares valued at US$2.5 million, based on an independent evaluation of the property.
The Liberty Bell project was previously explored by several companies over the past decade. Gold mineralization was identified along several north-east-trending shear zones. However, the bulk of previous work was focused in the area of the Liberty Bell mine itself.
Work in the mine site area included a 150-hole reverse circulation drill program totaling 39,691 ft., as well as 11,706 ft. of core drilling in 33 holes. A reserve (still open) was identified as containing 1.1 million tonnes grading 0.104 oz. gold per ton, with a 2.5-to-1 stripping ratio — all within a geologic resource of 2.5 million tonnes grading 0.1 oz.
Deeper drilling tested the area below the open-pit zone, and this work is reported to have identified a high-grade mineralized structure. Hemlo Gold is currently carrying out the exploration and development program on the property. Access is good, in that the project area is seven miles from the Alaska Railroad.
Hemlo is also active on another Alaskan project held by a Murray Pezim-controlled junior. Work this year is aimed at defining copper-gold reserves on the Zackly property held by Goldnev Resources (VSE).
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