Bullion River Gold Corp.
Bullion River Gold Corp. Signs Letter of Intent to Acquire two Mines
Corporate-news announcement sent by DGAP.
The sender is solely responsible for the contents of this announcement.
——————————————————————————–
Bullion River Gold Corp. Signs Letter of Intent to Acquire the Washington and
Niagara Mines and Plans to Re-open Mines in 2005
Reno, Nevada – June 29, 2004 – Bullion River Gold Corp. (OTC BB: BLRV)
(Frankfurt: BMV) has signed a Letter Agreement with two privately owned
corporations based in Wisconsin for the acquisition of the Washington and
Niagara mines (the “Property”).
The Property is located within the French Gulch mining district of the Klamath
Mountains Province, 15 miles northwest of Redding in northwestern California.
The Province has produced at least 7 million ounces of gold from placer and
mesothermal quartz vein deposits broadly similar to vein districts of the Mother
Lode region in east-central California. French Gulch has been the largest
producer in the Province, yielding an estimated 1.5 million ounces of gold, and
it contains the highest grades in the Province, with ore shoots typically
grading above 0.5 opt, and commonly above 1.0 opt. The district comprises a
number of past-producing vein mines along an easterly-trending belt 1.5 miles
wide and 10 miles long, with veins producing gold through a vertical range of
3,400 feet.
At the Washington mine, a series of at least six steeply-dipping, east-trending
gold-bearing quartz veins occurs across a width of at least 800 feet and a
strike length of at least 1,000 feet. Mineralization has been mined over a
vertical range of only 500 feet along ore shoots, which rake moderately west
(~45o), but mineralization remains open at depth and along strike. Coarse
visible gold is common. The Niagara mine workings, about 1 mile west of
Washington, are at present inaccessible. The mine consisted of 10 levels that
exploited veins similar to those at Washington, with production over 500 feet
vertically and along 1,200 feet of strike.
The Property has produced at least 200,000 ounces of gold, but production
records are incomplete. Mining and gold production on the Washington veins
commenced in 1852, the first bedrock gold mine in the Province, and continued
intermittently through 2001. High-grade mineralization mined in recent years
has included one small zone on the Lucky-7 vein, which yielded about 8,800 tons
grading 1.13 opt Au in the mid 1990’s. However, there has been very limited
exploration drilling from surface and underground. Recent intensive underground
sampling across veins has returned high grades, including 5.0 feet (1.5m)
grading 6.59 opt Au (192.21 g/t) from the Lucky-7 Vein on the 2630 Level. Dr.
Jacob Margolis, Bullion River’s VP of Exploration, states, “The Property offers
us a great opportunity to continue to delineate high-grade mineralization.
There’s been no systematic effort to aggressively drill test across the vein
system, along strike and at depth. Such work should allow us to develop
additional substantial long-term resources and reserves.”
The Property consists of 1,022 acres, of which 482 acres are patented land. The
project includes a mill that operated as recently as 2002, consisting of a
gravity and flotation circuit as well as a furnace for producing dore. Bullion
River plans to complete a comprehensive feasibility audit over the next three
months. The audit will evaluate the viability of the mine’s permits, mill
facilities and underground conditions. It will also allow for development of a
mine engineering plan and estimations of capital requirements and future
operational costs. Furthermore, the geology and mineralization will be
evaluated, and a three-dimensional model of underground workings and veins will
be created. With this information Bullion River will develop of exploration
strategies and various production scenarios.
Bullion River has paid a non-refundable deposit of $10,000 to the owners of the
Property, which allows Bullion River 90 days to conduct its due diligence on the
Property. As consideration for the deposit, the owners of the Property have
granted Bullion River the exclusive right to acquire the Property for a period
of 90 days. If the results of the due diligence on the Property are to Bullion
River’s satisfaction, Bullion River will enter into a more formal agreement with
the owners to acquire a 100% in the Property. Upon signing the formal
agreement, Bullion River will pay the owners $15,000 and will pay an additional
$50,000 on June 30, 2005, at which time a bimonthly payment of $50,000 will be
made to the owners. If the Property is put into production, the bimonthly
payment will be increased to $175,000. Bullion River will continue to make the
bimonthly payments until an aggregate $1,500,000 has been paid to the owners,
which will include all payments including the initial $10,000 paid as a non-
refundable deposit.
Tom LaBarge, an officer of both Wisconsin private corporations, states, “We are
pleased to find a company with the experience of Bullion River to develop this
property, which we have owned for almost 25 years.”
Peter M. Kuhn, CEO of Bullion River, states, “We are very excited with the
potential this Property has in enabling Bullion River to become a gold producer
as early as 2005. We are committed to a careful and thorough evaluation of the
Project over the next several months. Our experience in working with California
State and Federal authorities stemming from our North Fork Project will help us
accelerate this project into production status.”
About Bullion River Gold Corp.
Bullion River Gold Corp. is a mineral exploration company focusing on regions
containing gold-silver deposits. The company’s primary focus is the Great Basin
in the Western United States and the Motherlode belt of California. Bullion
River seeks projects that contain or have potential to contain high grades and
large tonnage potential. Bullion River will also focus on projects that contain
potential for mineralization concealed under post-mineral cover. For more
information please refer to Http://www.bullionriver.com or (in german)
http://www.bullionriver.de.
For questions please contact:
Bullion River Gold Corp.
Peter M. Kuhn
President
1325 Airmotive Way, Suite 325
Reno, Nevada 89502, USA
Tel +775-324-4881
Fax +775-324-7893
peter@bullionriver.com
www.bullionriver.com
Investor Relations Europa
AXINO AG
Wolfgang Seybold
D-70176 Stuttgart
Tel.+49-711-25 35 92-40
Fax +49-711-25 35 92-33
seybold@axino.de
www.axino.de
end of message, (c)DGAP 29.06.2004
——————————————————————————–
WKN: A0B931; ISIN: US1202551040; Index:
Listed: Freiverkehr in Frankfurt
291453 Jun 04
Aktuelle News
Aktuelle Berichte
Anstehende Events
Keine Events gefunden
Webcasts
Keine Webcasts gefunden