Tuesday, 25th July 2006 (2441 views)

Luna Gold has signed an agreement to acquire a 100 per cent interest in the Eureka claims in western Nevada, it has been announced.

It is believed the Eureka property, which is located 13 miles west of Hawthorne, on the west flank of the Wassuk Range in the Walker Lane belt, exhibits good potential for a high-grade gold vein system.

Exploration data for the property is unconfirmed, but samples taken from it in 2000 are thought to have averaged over 0.5 oz/t. The highest grade was 3.85 oz/t Au from a two foot chip sample of quartz vein in a crush zone.

The vein can be traced at surface for over 1,500 feet and evidence suggests that it could extend significantly further. In its surface exposure, the vein is typically 18 to 24 inches wide, but reports of underground thickness indicate widths in excess of four feet and up to six feet.

According to the terms of the agreement signed, Luna Gold will pay $1 million and perform $1 million of work, both over seven years.

A total of $5,000 is required in the first year, and the work commitment is $25,000. The property will be subject to a two per cent NSR, which Luna can reduce to one per cent with a payment of $1 million.

Following a period of mapping and sampling the property will be ready for drill testing. Luna intends to undertake preliminary fieldwork on the property before bringing in a joint venture partner to drill test the targets.

 

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