North Bay Resources Inc. announced today that it has signed a Letter of Intent (“LOI”) with Drake Gold Resources Inc. (“Drake”) to formalize a joint venture agreement for the exploration of North Bay’s recently announced Coronation Property near Slocan in southeastern British Columbia.
The Coronation Property covers 103 acres over several reverted crown grants and includes three past-producing mines; the Colorado, the V&M, and the Senator mines, in addition to the Coronation. Primary mineralization is gold, silver, zinc, and lead. According to BC MINFILE 082FNW162 and Assessment Report 18603, the Coronation Property was reported to have past-production of as much as 13,000 grams (418 ounces) per tonne silver and 20% lead, while the highest combined historical (post-production) assays are 16.8 g/t gold, 6000 g/t silver, 10.9% zinc, and 1.2% lead.
A key focus of the joint venture is the utilization of Drake’s equipment and resources in the processing of any surface ore dumps that may be remaining from previous mining operations at the Colorado, the V&M, and the Senator mines over the past 100 years. Should these efforts prove successful, a portion of any subsequent revenue generated from the recovery programs will be re-invested to develop the property’s underground resources, with the goal of making further development of the property self-sustaining.
Terms of the agreement will be announced once a formal contract has been executed.
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