By acquiring all outstanding shares of Ecuadorian resource company Square Valley, Startigan (ASE) has assumed ownership of two gold projects in the foothills of the Andes.
The Gaby property, 85 miles southeast of Guayaquil, Ecuador, has the potential to host a large porphyry gold deposit, according to Startigan, which can earn a 35% interest in any oxide reserves outlined and a half interest in any underlying sulphide material.
Only limited exploration has been conducted, including some diamond drilling, shallow reverse circulation drilling, and trenching. Gold mineralization is hosted in a large stockwork system with known dimensions of about 3,000×2,000 ft.
Previous diamond drilling results include a 138-ft. intersection grading 0.044 oz. gold per ton, a 190-ft. intersection grading 0.065 oz. gold and a 558-ft. intersection grading 0.035 oz. gold.
On the Tres Chorreras property, 15 miles southeast of Gaby, mineralization consists of gold, silver, copper and molybdenum occurring as disseminations, fracture filling in veins, and massive sulphides.
To maintain ownership of Tres Chorreras, Startigan must make annual property payments.
Early last year, 319 panel samples from the three types of mineralization returned an average of 0.047 oz. gold, 0.63 oz. silver, 0.45% copper and 0.19% molybdenum. Startigan plans more detailed geological mapping in the spring of 1994 in preparation for drilling.
The company has raised $3.9 million through a brokered placement at $1 per unit. Each unit includes a share plus half a warrant exercisable at $1.25 for two years.
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