USMX sells royalty in Montana Tunnels

In an effort to raise funds for its Illinois Creek gold project in Alaska, USMX (USM-T) will sell its royalty interest in another project.

The company will sell its 5% royalty interest at the Montana Tunnels gold mine near Helena, Mont., to operator Pegasus Gold (PGU-T) for US$4.5 million.

USMX was recently issued several permits for the construction of the Illinois Creek project, situated near the Yukon River in west-central Alaska.

Mobilization of equipment began two months ago, and construction is planned for the summer.

Gold production, to begin in September, is projected at 20,000 oz. in 1996, rising to 60,000 oz. per year thereafter.