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Auric Mining Signs Letter of Intent to Acquire Homestead Tonopah Gold LLC Friday April 29, 2011, 10:42 am
WILMINGTON, Del., April 29, 2011 /PRNewswire/ -- Auric Mining Company (OTC:AUMY.PK.ob - News) (the "Company") is pleased to report that the Company has signed a Letter of Intent (LOI) to acquire Homestead Tonopah Gold LLC, a Nevada Corporation located in Carson City, Nevada. The terms of the agreement will be disclosed upon closing.
Homestead Tonopah Gold owns a 50% interest, by virtue of a joint venture agreement, in a substantial gold bearing property located near Tonopah, Nevada. The property is situated in the Walker Lane domain of the Basin and Range physiographic province. It's surrounded by three well established deposits (each either abutting property or within 2 miles distance). Phelps Dodge performed some work on the property in the early 1990s and found 100,000 ounces of gold, but did not explore it further because it was considered too small by their standards at the time.
In the mid 1990s, the property was explored by various public mining companies and they spent substantial development money exploring its potential. They projected that the property held at least 200,000 ounces of gold, which would be worth approx. $280 million based on today's price of gold. Their drilling program bottomed out in gold. However, they were not able to attract additional funds to drill deeper and subsequently the price of gold declined. The property holds exceptional potential if drilled to depth. There is the possibility that the property could be merged with one of the surrounding properties to create the potential of a 500,000 + ounce ore body.
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