THE GLOBAL SEARCH FOR GOLD SPECIAL — Echo Bay eyes Delores gold property

As part of a “strategic alliance” with Minefinders (MFL-V), Echo Bay Mines (ECO-T) has been granted the right to earn a 60% interest in the junior’s Dolores gold property in Mexico’s Chihuahua state.

As part of the transaction, the major closed a private placement of 400,000 units of Minefinders at a price of $2.50 each, for proceeds of $1 million.

The junior intends to use 75% of the initial proceeds to fund a first phase of drilling, with subsequent phases to be funded from the exercise of warrants.

Echo Bay also must produce and fund a bankable feasibility study and pay Minefinders an amount equal to US$20 per equivalent ounce (gold plus silver) for 60% of the proven and probable reserves calculated in the feasibility study, subject to a minimum price of US$12 million.

The Dolores property hosts gold-silver mineralization in a series of brecciated and stockwork-veined felsic dykes cutting andesitic to dacitic flows and tuffs.

Mineralization has been traced for more than 3,500 metres along strike, and a primary target has been selected for drilling, to begin shortly. A diamond drill program comprising at least 20 holes and spanning 3,000 metres will be carried out. The objective will be to test 800 metres of mineralized strike length in the primary drill target.