St. Elias Mines (TSX-V: SLI) has announced it is escalating exploration programs at three properties in Peru (Tesoro, Cueva Blanca and Vilcoro) and two in British Columbia (Strawberry Flats and Beaverdell).
With the exception of the Tesoro Gold Project in Peru, these programs are being advanced through option agreements, exposing St. Elias to over $7.1 million in exploration, which is to be funded by other parties.
At the Tesoro Gold project, a Stage 1 Titan 24 geophysical survey was completed during the 2009 exploration season and the company is following up with an ongoing exploration program budgeted at $3 million for the next 12 months.
St. Elias is equipped with working capital of approximately $4 million to complete the planned exploration program.
The field portion of the Stage 2 Titan 24 geophysical survey was completed in June and final results are still pending. The surface exploration program (rock samples, soil samples, trenching), to examine and evaluate geophysical anomalies, is ongoing.
In addition, the company is in the process of completing an Independent 43-101 technical report on the Tesoro project, which will be made available on St. Elias` website shortly.
At the Cueva Blanca property, the company entered into an agreement with Amarok Resources in April, whereby St. Elias granted an option to Amarok to earn a 60% interest, subject to a 1.5% net smelter return royalty (NSR), in the property located in northern Peru. The two companies are initiating a Phase I exploration program on the lands.
The Vilcoro property is 50% owned by the company and 50% owned by Emilsen Medina Inga de Brophy In April, the St. Elias and Emilsen entered into a letter agreement with Ansell Capital Corp., which stated that Ansell agreed to acquire a 65% interest, subject to a 1.5% NSR, in the Vilcoro Gold property located in north-central Peru.
In March this year, St. Elias entered into an option agreement with Dorex Minerals where Dorex agreed to acquire up to an 80% interest, subject to a 1.5% NSR, in the Strawberry Flats Gold project located in south-central British Columbia. A Phase I 2010 exploration program, designed to locate drill targets for a Phase II diamond drilling program, is ongoing.
Finally, at its Beaverdell Gold/Silver property in southwestern British Columbia, St. Elias granted an option to Intigold Mines to earn a 100% interest, subject to a 1.5% NSR in the property. A 2010 exploration program has also been initiated.
St. Elias Mines is engaged in the acquisition, exploration and development of natural resource properties. The company’s projects include Tesoro Gold Project, Vilcoro Gold Property, Cueva Blanca Property, Jales/Gralheira Gold Property, Kettle River (Carmi) Molybdenum Property, South Rim Property and Beaverdell Gold/Silver Property. The Tesoro Gold Project is situated in a highland desert plateau in south-western Peru.
The company`s share price was up by 4.42% in mid-afternoon trading to $1.18 on the TSX-Venture Exchange.