In a deal with two private Brazilian companies, Consolidated Madison Holdings (VSE) can acquire the surface and underground mineral rights to 2,000 hectares in Mato Grosso state.
The acquisition will cost US$600,000, payable during the first year, plus a 2.5% production royalty.
At least 10 separate areas of gold mineralization have been identified within the property boundaries, including garimpeiro operations.
One open pit, measuring 400 metres long, 50 metres wide and 20 metres deep, has yielded more than 1,000 kg of gold from a gravity plant. A major mining company evaluated the property but was unable to complete a purchase agreement. It estimated the near-surface in situ resource, upon which existing workings are focused, to be 1.6 million tonnes grading 9.3 grams gold per tonne.
Madison is performing preliminary exploration of the ground and plans to begin reverse circulation and diamond drilling early next year to define the property’s potential.
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