Hecla drilling underway on Cimarron Sunset property in Nevada
Cimarron Minerals Ltd CIU
Shares issued 6,041,108 Dec 11 close $0.09
Tue 15 Dec 98 News Release
Ms. Dianne Szigety reports
Cimarron Minerals has completed a formal earn-in agreement between its
wholly-owned U.S. subsidiary and Hecla Mining Company (NYSE:HL) for
exploration and development of the company's Sunset gold property.
Hecla has begun a 5,000 foot reverse circulation drilling program at the
Sunset gold property, in Mineral County, Nevada. Three to four angle holes
are planned to test the north trending Maryann Basin structures. The holes
are to be drilled in a westerly direction to test a surface rock
geochemical gold anomaly which is coincident with a gradient and real
section induced polarization anomaly which extends downward for at least
1,000 feet. Mid-Tertiaiy aged intermediate to felsic volcanic rocks host
epithermal gold-silver mineralization at the Sunset property.
Pursuant to the agreement, Hecla will pay the underlying option payments,
BLM (Bureau of Land Management) maintenance fees and county filing fees.
Hecla will also be required to complete $3,500,000 (U.S.) of exploration
and development within four years and to make annual payments to Cimarron
totalling $90,000 (U.S.) to earn a 65 per cent interest in the project.
Hecla may then earn an additional 15 per cent by financing Cimarron through
to production. Cimarron's interest would convert to a 4 per cent nsr if its
interest drops to 20 per cent.
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