RTZ-CRA options Yanacocha

In northern Peru, RTZ-CRA (RTZ-N) and Solitario Resources (SLR-T) have struck a deal whereby each company will explore a property held by the other.

RTZ-CRA can earn a 60% interest in Solitario’s 155,000-Acre Yanacocha gold-copper property by spending US$5 million over the next four years. Once the first year’s work commitment of US$212,000 has been fulfilled, RTZ-CRA can, at any time, terminate the agreement.

The property is north of the town of Cajamarca and between the Yanacocha gold mine of Newmont Gold (NGC-N) and the Cerro Corona gold-copper porphyry property of Barrick Gold (ABX-T).

Barrick optioned the Yanacocha from Solitario in late 1995 but returned it after drilling 13 holes.

Solitario can earn a 60% interest in the 10,000-Acre Santa Barbara gold-copper property of RTZ-CRA by spending US$1.5 million over three years.

The junior can terminate the agreement at any time once the first year’s work commitment of US$250,000 and 2,500 metres of drilling has been fulfilled. The property is in Peru’s Cerro de Pasco region.

Once Solitario completes its work commitment, the major can earn back its interest by carrying the project through to the feasibility stage.

To date, five holes have been drilled on the property, four of which intersected mineralization in what RTZ-CRA believes to be a copper-gold porphyry system. Solitario hopes to begin the drilling at Santa Barbara by late summer.