News release/trading resumes:
JV to develop Lyon deposit in Nevada
Mr. Robert Blakestad reports International Taurus Resources and American Copper Corp. have signed a binding letter agreement for the formation of a joint venture to explore and develop the Lyon copper-gold-magnetite project located in Yerington, Nevada. On March 31, 1998, International Taurus signed a letter agreement with Cyprus Metals Exploration, a wholly owned subsidiary of Cyprus Amax Minerals Company, which provided for the acquisition of a 100 per cent working interest in the Lyon project through payments of $3,250,000 (U.S.) in cash and stock and completion of $4,000,000 (U.S.) in work over the next three years. This letter agreement, which is described in detail in Stockwatch on April 14, 1998, is subject only to signing a formal agreement with Cyprus.
American Copper may earn a 60 per cent share of Taurus's interest and
become project operator by completing all work commitments and payments to Cyprus. American Copper may earn a further 10 per cent working interest by completing a bankable feasibility study and arranging project financing. The Lyon project hosts three high grade copper skarns with gold and magnetite by-product credits. The announced indicated resource totals 12.1 million tons grading 3.41 per cent copper. Two of the three deposits contain 27 per cent iron as magnetite, which may be saleable as a feed to steel making operations, as a coal washing medium or as a component of ferro-concrete production. In addition, two open pit copper magnetite skarns are defined on the project. The project is open on strike and at depth. Over $25-million (U.S.) has been spent on the project, mainly in detailed exploration of the open pit zones, over the past 25 years. The joint venture will be the first to examine the economics of underground mining of the high grade resource. A $1-million
(U.S.) exploration program will commence on the project following
signing of the formal agreements and will be designed to define a high
grade starter resource sufficient to justify detailed feasibility work
on the project commencing early in 1999. |
