Tombstone Explorations (TSO-T) is acquiring the Grassy Mountain gold project in southeastern Oregon from Atlas (AZ-N).
The hot springs-style gold deposit is estimated to contain a measured and indicated resource of 17.4 million tons averaging 0.052 oz. gold per ton, equivalent to 901,800 contained ounces.
About half of the contained ounces are found in the Bonanza zone, a high-grade manto-shaped blanket averaging 80 ft. thick and lying 600 to 750 ft. below surface.
Highlights of some of the higher-grade sections cut by past drilling include 90 ft. averaging 1.29 oz., 25 ft. of 4.44 oz., 10 ft. of 0.94 oz. and 80 ft.
of 1.6 oz.
Tombstone sees potential in proving up a deposit of up to 2 million tons grading 0.35 oz. The company believes a low-cost underground mine is feasible. Plans are under way to begin an 81-hole drill program in the first quarter of 1998.
Tombstone can acquire the project for US$4 million. The company has paid Atlas an initial US$100,000 and must provide a US$600,000 demand loan, which will be secured by the project. An additional loan and further option payments will be made over a 14-month period.
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