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Wednesday, Jun 12, 2024
Mugglehead Magazine
Alternative investment news based in Vancouver, B.C.

Gold

Zacapa Resources acquires California gold project for $2.35M

The company obtained the project through the acquisition of the private B.C. company Lustrum Gold Corp

Zacapa Resources acquires California gold project for 33.6M shares
Photo by Optimarc via Shutterstock

Vancouver-based Zacapa Resources Ltd. (TSX-V: ZACA) (OTCQB: ZACAF) has added a new California gold mine to its portfolio after acquiring Lustrum Gold Corp, the mine’s previous owner.

Zacapa announced the acquisition of the Kramer Hills gold project on Monday and paid Lustrum 33.6 million of its shares along with a two per cent net smelter royalty.

The mine has a long history dating back to the early 1900s and it is situated on a series of 634 claims spanning approximately 12,850 acres owned by the United States Bureau of Land Management.

By 1934, numerous shafts had been constructed at the site prior to the mine shutting down before the Second World War. Following the war, no significant activity at the mine was recorded until 1983 when Amselco Minerals obtained a permit for gold processing there.

The project was then later acquired by the company Beaver Resources, which conducted drill programs there until 1990 when operations at the site ceased until present day.

Read more: NevGold finds high-grade gold underneath the surface at Nutmeg Mountain

Read more: NevGold assays high-grade silver at Ptarmigan, expands copper trend

Historical resources at the mine comprise five near-surface open-pit oxide gold deposits authorized for exploitation in the late 1980s. They held about 7,500,000 tons at reported grades of 1.65 g/t gold, yielding 375,000 ounces of oxide gold.

“Kramer Hills contains historical resources with robust oxide gold grades and has excellent potential for expansion along strike and at depth,” said Ian Slater, Executive Chairman of Zacapa.

“The greater than two kilometre strike length of historic mineralization under thin cover along with widely distributed gold occurrences in the Kramer Hills district suggests there is good potential to add additional oxide gold mineralization to the deposits and make new discoveries.”

Kramer Hills gold project. Photo via Zacapa Resources

The presence of gold in Kramer Hills spans an area of 7.5 kilometres in a northeast-southwest direction and 8.5 kilometres in a northwest-southeast direction. The central area is highly concentrated with more than 54 historic shafts, 2.4 kilometres of tunnels and several trenches and pits.

The mine is located 21 kilometres southeast of the Boron Mine owned by Rio Tinto Ltd (ASX: RIO) (LON: RIO) in San Bernardino County.

In February, Zacapa also announced that it had secured the final drill permits for its Bullfrog gold project in Nevada.

Other California gold miners include Equinox Gold (TSX: EQX), KAPA GOLD INC. (TSX-V: KAPA), which owns the Blackhawk Mine in San Bernardino and Southern Empire Resources Corp. (TSX-V: SMP) (Frankfurt: 5RE) (OTCQB: SMPEF) which acquired the Oro Cruz project in the state last month.

Zacapa shares dropped by 6.67 per cent Wednesday to $0.07 on the TSX Venture Exchange.

 

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