 | 
| |
 |
|
 |
|
|
Crestview Property
The Crestview Property consists of 27 mineral claims in the Cortez-Pipeline sector of the Battle Mountain Trend, Nevada. The property covers approximately 558 acres, lying about one mile south of the Gold Acres open pit gold mine and 1.5 miles southwest of the 10 million ounce Pipeline gold deposit. Both Gold Acres and Pipeline are operated by Placer Dome for the Cortez Joint Venture.
Subject to third party net smelter royalties, the Crestview Property is 100% owned by Columbus and has been optioned to Agnico Eagle (USA) Limited, a US subsidiary of Agnico Eagle Mines Limited. Agnico can earn a 51% interest in a package of three of Columbus Gold's properties, which includes the Crestview Property, by incurring work expenditures totaling US$6.5 million over a seven year period. Once Agnico has earned a 51% interest, it may elect to earn an additional 19% (for a total interest of 70%) by preparing and delivering to Columbus, a feasibility study for the development of a mine on any one of the three properties. In the event of a decision to develop a mine, Columbus may require Agnico to arrange financing for Columbus Gold's proportionate share of the capital required for the development of the mine in which case Agnico will earn a further 5% interest in the three properties for a total interest of 75%.
Historical exploration at Crestview includes surface sampling and four drill holes by Newmont in 1987 and five drill holes by ASARCO in 1994. The drill holes collared in the upper plate of the Roberts Mountain thrust fault and penetrated metamorphosed lower plate limestones and limy siltstones at depths of 400-500 feet. The lower plate rocks were altered in several holes, and contained low anomalous gold (to 0.015 opt gold).
This well-located property is under-explored. A geophysical and geochemical program is required to locate targets at structural intersections in the lower plate carbonate rocks at depth, followed by drilling to moderate depths (1,000-1,500 feet).
|
| | |
