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Tuesday, 13th June 2006 (3915 views)

Premium Exploration is optimistic about the Nueva Galicia project in Mexico, which it recently acquired the right to take a full interest in.

The land covered by the project totals close to 14,000 hectares and saw a previous operator record 219 grams of gold per tonne taken in a 1.5 metre chip sample.

Nueva Galicia can become entirely the property of Premium Exploration through cash and share payments of $1 million, expenditure of $1.8 million and issuing 500,000 company shares over four years.

In a press statement, the company declared: "Bladed quartz after calcite or barite is present locally, indicating preservation of the upper part of the epithermal system where boiling occurred and which is typically above bonanza-grade mineralisation."

"Infrastructure and access to the project are excellent," Premium Exploration added.

The company must also invest $150,000 in the first year to guarantee its interest in the project.

Inflationary concerns and global financial instability saw gold prices lose further ground today, but remaining strong over the past year.

 

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