100% of Mexican porphyry copper property acquired
Morgain Minerals Inc MGM
Shares issued 20,800,636 Mar 17 close $1.02
Wed 18 Mar 98 News Release
Mr Raymond Mongeau reports
The company has signed an agreement with Mr R. Rodriquez of Mexico City,
Mexico for the acquisition of 100% interest in the Santo Tomas porphyry
copper property in the State of Sinaloa, Mexico. The terms of the agreement
call for cash payments totalling US$350,000 over three years, a cash
payment of US$4.0 million upon commercial production followed up by a bonus
fee of US$2.0 million derived from production revenues.
The Santo Tomas ore body is one of the largest undeveloped porphyry copper
ore bodies in Mexico. A positive pre-feasibility study was completed during
1994 by the firms of Bateman Engineering, Mintec and Mountain States R and
D International, using the conventional smelting and refining processes.
Proven and probable mining reserves, as estimated by Mintec, and using a
cut-off grade of 0.35% Cu, stand at 247,000,000 tonnes with an average
grade of 0.44% Cu, 0.072 g/t gold and 2.27 g/t silver. Contained metals
stand at 2.4 billion pounds of copper, 573,224 oz of gold and 18,048,000 oz
of silver. Reserves are open at depth and on strike. Head grade is likely
to increase with additional drilling.
Morgain will proceed to evaluate all of the technical data in conjunction
with consultants and will continue it's discussions with Cominco
Engineering Services with regard to bench scale testing its copper
concentrates. This process produces high purity copper with no pollution
and could have much lower processing costs versus the conventional
smelting-refining process.
Morgain has been approached by major mining companies with regard to
participation and will follow this up in the weeks ahead.
(c) Copyright 1998 Canjex Publishing Ltd. canada-stockwatch.com |
