Fremont grabs more ground in northern Chile

Junior Fremont Gold (FGLD-Q) has signed a letter-of-intent to acquire the 80,000-ha Dania gold property in the Maricunga district of northern Chile.

The property, currently owned by Chilean-based Dania Gold, lies along the flanks of the Refugio and Aldebaran properties. The former is held by Bema Gold (BGO-T) and Amax Gold (AXG-T); the latter, by Arizona Star Resource (AZS-V) and Bema, with Placer Dome (PDG-T) holding an option to acquire a majority interest.

To earn a 100% interest, Fremont must spend US$1 million on exploration and US$4 million in cash and shares before the year 2000. The vendor is entitled to a 2.5% net smelter return royalty if a deposit is developed.

Fremont will carry out geochemical sampling and geological mapping. A preliminary reconnaissance survey is to be completed by May 1998.

In August, the company signed a letter-of-intent to acquire the Laja gold property, also in northern Chile. The property is adjacent to, and north of, the Andacollo mine of Dayton Mining (day-x).

Over the past 10 years, the owners of Laja have mined, on a small scale, a series of gold veins that cut across the property. Fremont is exploring the property for larger, bulk-minable targets.