Chesbar Resources (CBI-M) has completed a major round of diamond drilling at its La Salle I gold property on the company’s Anacoco IV concession in Venezuela’s Bolivar state.
The 41-hole, 5,000-metre program was funded by an initial tranche provided by Barrick Gold (ABX-T) under an agreement signed in 1995.
Chesbar says that a preliminary assessment of the resource in the central portion of the La Salle zone will be made within several weeks. The rest of this zone, and particularly its northward extension, has yet to be drilled, as have several other promising gold zones discovered by surface sampling.
After spending an initial $2 million, Barrick can acquire additional Chesbar shares for $1.5 million, at a price per share of either $1.50 or the market value of the shares at the time of the exercise, whichever is greater. If the option is exercised and the money is spent on the Venezuelan properties, Barrick can acquire additional shares for another $1.5 million on the same basis.
If all of Barrick’s options are exercised and the money is spent on the property, the major will have the right to finance work necessary for a feasibility study. Upon completion of the study, Barrick will hold 60% of Chesbar’s interest in the project,
a figure that can be boosted to 65% by paying a further $5 million.
Chesbar currently holds a 90% interest in the Anacoco IV concession, with a non-profit Venezuelan foundation retaining a 10% carried interest.
Chesbar expects to meet with Barrick in May to discuss the results of the current program.
Be the first to comment on "Chesbar drills at La Salle"