Win-Eldrich nears decision on U.S. gold-molybdenum bet

A production decision could be made within a year on a gold- molybdenum property in northern Nevada, Win-Eldrich Mines President Reuben Brant said at the annual meeting.

The Ashdown property, located about 80 mi northwest of Winnemucca, is a joint-venture project between Win-Eldrich (72%) and American Copper & Nickel (28%), a wholly-owned subsidiary of Inco Ltd. Win-Eldrich is earning its interest by spending approximately $300,000(C) to prepare a feasibility study and by performing exploration work. The Toronto-based company, through its U.S. subsidiary, will be responsible for placing the property into production and operating it.

Drilling to date has indicated 1.16 million tons of ore, mineable by open pit, at a mine-diluted grade of 0.125 oz gold per ton within 200 ft of the surface. Additional gold- bearing veins are known to occur below the 200-ft level, Mr Brant said.

The property also contains a high grade molybdenum reserve, Mr Brant said. Reserves of 146,000 tons of 2.9% molybdenite and an additional 600,000 tons grading approximately 1% molybdenite have been identified.

Win-Eldrich’s 72% interest in the Ashdown property is held through a private company, Westwater Resources; Win-Eldrich has acquired an option to purchase all of Westwater’s outstanding shares in return for 150,000 common shares and a net proceeds interest to the former shareholders. Additional property acquired

Mr Grant said Win-Eldrich has acquired additional ground in the area and that the company now has about nine sq mi under its control. While the company expects to make its money from its gold operation, he said should the price for molybdenum (currently running in the $2.67-$2.75(US)-per-lb range) improve, the Ashdown project could show better returns for the latter mineral.

“The property so far has proven up everything we expected and has the potential to be a lot larger than we expected,” Mr Brant said.

A heap-leach operation is a possibility for the property, Mr Brant said.

Win-Eldrich earlier this year completed a private placement which netted the company $355,000(C).

In other news, Win-Eldrich and Esso Minerals Canada have entered into an agreement whereby Esso can acquire Win-Eldrich’s 95-claim Chibougamau, Que., gold property in return for $25,000 and a 2% net smelter return royalty. Esso has agreed to spend $75,000 in exploration on the property (Esso owns other property in the area) during the next year and has the option of spending $300,000 in order to earn a 100% interest in the property.

Also, the company has restaked 20 mining claims in Carpenter Twp., Abitibi East, Que., at a cost of $4,000.

Win-Eldrich reported cash on hand of $113,228 at the end of 1986.