U.S. Report Win-Eldrich options Ashdown for $2 million

The Ashdown property in northern Nevada, where proven and probable reserves stand at 1.12 million tons averaging 0.09 oz. gold per ton, has been optioned by Win- Eldrich Mines (TSE) to Billiton Minerals, a unit of Shell Oil. Under the terms of the option agreement, Win-Eldrich will transfer its right to mine precious metals on the 10-square-mile property for US$2 million and a 4% royalty. For every US$25 increase in the price of gold, this royalty will increase by 1/2%. If any base metals are mined, a comparable royalty will be paid.

Billiton has paid US$50,000 for an exclusive 120-day due diligence period. After the work is completed, Billiton will decide whether to proceed with the agreement.

In a separate development, Homestake Mineral Development Co., the Canadian subsidiary of Homestake Mining (NYSE), has exercised its option to acquire 65 claims in the Druillettes and Guercheville twps., Que. Win-Eldrich is entitled to 2% royalty on these claims.