United Tex-Sol partner drilling Clavos property
United Tex-Sol Mines Inc UTX.A
Shares issued 21,163,889 Sep 26 close $0.27
Wed 27 Sept 2000 News Release
Also Kinross Gold Corp (K)
Mr. John M. Rucci reports
Drilling has been started on the Clavos property by Kinross Gold, to
fulfill its commitment for year two of the option agreement. Kinross has
planned a 7,000-metre drill program to be completed prior to Dec. 31, 2000.
The results of the drilling will be made available when the corporation
receives them.
One drill has commenced drilling, with a second drill to be added in one
week. The purpose of the program is to drill holes within outlined ore
shoots to gain a higher degree of confidence in existing grades as well as
increase overall knowledge of the deposit.
Kinross holds an option to purchase 100 per cent of the Clavos property
based on a gold resource calculation (using a seven-gram-per-tonne cutoff)
and the average price of gold for 30 days prior to the exercise of the
option. The purchase price is $15 per resource ounce if gold is under $350
per ounce and $25 per resource ounce if gold is trading above $350 per
ounce. Kinross earns this option on the completion of a three-year
exploration program in which Kinross must spend $3.5-million (year one --
$500,000 expended; year two -- $1-million; year three -- $2-million) and
make a payment to the corporation of $200,000, of which $150,000 has been
received to date. However, if Kinross does not exercise its option at the
completion of the exploration program it does not earn any interest in the
property.
As Kinross continues to drill on the property the final determination of
the property value for the purpose of the option agreement will be
established at the conclusion of the drilling and evaluation program,
through negotiations and discussions between the corporation and Kinross.
By an evaluation completed by Roscoe Postle Associates in May, 2000, the
gold ounce calculation resulted in 953,838 ounces, which should be
construed as a mineral resource estimate, but rather a calculation as
contemplated by the option agreement between the corporation and Kinross.
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