Manhattan, Dynacor ink deals in Peru

Compania de Inversiones y Exploraciones Mineras (Cedimin) has granted Manhattan Minerals (MNA-T) a 15-month extension on its option on the 32-sq.-km. Papayo concessions. The concessions are part of the Tambo Grande gold and base metal project in northern Peru.

The new option expires Jan. 15, 2004. No changes have been made to the original terms. To earn a 51% interest in the concessions, Manhattan must spend US$5 million. So far, the company has spent US$2.3 million.

The Papayo concessions host the B-5 deposit, where drilling has outlined a 450-by-250-metre, northwest-trending massive sulphide. The zone has an indicated thickness of 320 metres and remains open in all directions.

Ten holes have tested B-5. Last fall, the company tested the continuity of a deep, higher-grade copper zone which had previously been encountered in hole 8. A 52.8-metre intercept at the base of a 200-metre-long massive-sulphide intersection in hole 8 averaged 4.6% copper and 17.7 grams silver, starting at a depth of 578 metres.

Based on the drilling to date, the company believes that B-5 hosts copper mineralization at a grade that should support an underground mining operation.

Gravity surveying indicates that the zone may extend 700 metres beyond the Papayo property boundary and on to the company’s wholly owned Lancones concessions.

Elsewhere in Peru, Montreal-based Dynacor Mines (DYN-M) has agreed to acquire a 60% interest in two Peruvian gold-bearing properties held by Peru-based Tumipampa.

The Tumipampa I and II properties cover 7 sq. km on the eastern side of the Andes at an altitude ranging from 3600 to 4600 metres. They lie 52 km south of the town of Abancay in the department of Apurimac.

To earn its interest, Dynacor must spend US$1.3 million on exploration over five years. The spending increases in yearly instalments that range from US$50,000 in the first year to US$450,000 in the final year. Dynacor must also issue to Tumipampa 3 million shares, with 500,000 due on signing. Another payment of US$100,000 is due at the completion of exploration. The deal is subject to regulatory approval.

Preliminary work on the property over the past two years has identified two areas of interest: the El Foco Zone, a stock of metasomatic rock of granodioritic origin; and a contact zone between the intrusive body and a limestone formation, which suggests the possibility of a skarn-type deposit with disseminated gold.

Gold mineralization is associated with quartz in veinlets and fractures. It was also found to be associated with a late silicate phase, which had filled the fractures and veinlets.

The two properties are located in the mineralised Ferrobamba formation, which is known to host polymetallic skarn deposits such as BHP‘s (BHP-N) Tintaya deposit in Peru.

Dyancor plans: an extensive program of systematic sampling of surface rock; and a complete geophysical survey of the two properties.

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