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Laura Property
The Laura Property consists of 13 mineral claims covering approximately 268 acres, located approx. 5 kilometers southwest of the Cortez open pit gold mine and approx. 3 kilometers west of the new 9 million ounce Cortez Hills discovery. The Cortez Mine and Cortez Hills are owned by the Cortez Joint Venture, operated by Placer Dome.
Subject to third party net smelter royalties, the Laura 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 Laura 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%.
A gold-bearing, silicified zone in Tertiary Caetano Tuff was the original exploration target at Laura. In 1993, Heritage Petroleum did geochemical sampling and drilled six holes averaging 310 feet of depth. The drill holes bottomed in the Tertiary tuff and were not deep enough to cut the Paleozoic sedimentary rocks at depth.
The nearby discovery of Cortez Hills makes the Laura Property worthy of further exploration; at depths deep enough to test the Paleozoic rocks, hosts to the significant deposits in the region.
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