NASDAQ-listed USMX has the right to acquire about 10,000 acres of patented and unpatented mining claims in the Thunder Mountain mining district of central Idaho.
The agreement covers the Thunder Mountain and Dewey properties which contain a preliminary resource of about 5.4 million tons grading 0.054 oz. gold.
USMX plans to study the potential of outlining a higher-grade reserve within the Dewey deposit. Most of the gold-silver mineralization there occurs as free gold and electrum and may be economically recoverable using coarse grinding and gravity separation.
The company is committed to spending US$200,000 evaluating the property to April 1, 1994. At that point, USMX must commit to spend an additional US$300,000 by April 1, 1995, at which time it can buy the property for US$5 million.
If USMX does not exercise the option, the property-owners can elect to take one of three options including: a 30% working interest plus a 1.5% royalty; a 30% net profits interest; or a 5% royalty from production.
USMX plans to begin drilling on Dewey in late July.
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