Cordex Syndicate Exploration and Development Clause Samples

Cordex Syndicate Exploration and Development. The property remained functionally dormant until 1970, when an exploration group known as the Cordex I Syndicate (J▇▇▇ ▇▇▇▇▇▇▇▇▇, P▇▇▇▇ ▇▇▇▇▇ and Rayrock Resources) leased the property on the strength of its similarity to G▇▇▇▇▇▇▇ and structural position along the range-front fault zone bordering the Osgoods. Following a surface mapping and sampling program, 17 rotary holes were completed in and around the initial P▇▇▇▇▇ pit in 1971 and confirmed only low-grade gold values. An 18th step-out hole discovered a 90' (27.4 m) intercept of 0.17 (5.8 g/t), indicative of a subcropping extension to known mineralization northeast of the original pit, resulting in the definition of what would become the "A" zone at the P▇▇▇▇▇ property - a 60 foot x 1,000 foot shear zone estimated to contain 1.5 M tons of 0.18 opt Au. Continued exploration southwest of the original pit defined the "B" zone, estimated at 1.7 M tons at 0.15 opt Au. No production was attempted at the time because of low gold prices ($65 per oz) (K▇▇▇▇▇▇▇▇▇, 1983; M▇▇▇▇▇▇▇▇ et al., 2000). The gradual rise of gold prices to > $250 per oz. in the late 1970s allowed the Cordex I Syndicate - which then consisted of several minority partners - to reorganize into a partnership known as P▇▇▇▇▇ Mining Company, with Rayrock Mines as the operator, and begin production. Homestake Mining Company and B▇▇▇▇▇▇ Gold became partners in P▇▇▇▇▇ Mining through their purchase of some of the minority interests (M▇▇▇▇▇▇▇▇ et al., 2000).