LATIN AMERICA — BHP Minerals eyes interest in Bolivia’s Iroco project

Juniors Altoro Gold (ATG-V) and Vista Gold (VGZ-T) have signed an option agreement enabling BHP Minerals to earn a 50% interest in their jointly held Iroco gold project in Bolivia.

To earn its interest, BHP must spend US$1 million exploring the property.

According to terms of the agreement, Altoro and Vista would dilute their interests to 25% each. BHP can purchase an additional 10% stake by paying $1 million.

Altoro will operate the first-phase program, which will include mapping, soil sampling, geophysical surveys and 500 metres of drilling. BHP has the right to become operator during the earn-in phase, or if it maintains a majority interest in the project.

Surface work and limited drilling have outlined a large gold-bearing system, and BHP’s goal is to prove up a gold deposit of at least 1 million oz.

Elsewhere in Bolivia, Altoro has acquired options to buy interests in three mineral properties in the northeastern area of Cordillera Real. The properties comprise six concessions covering 1,307 ha.

The region, according to the junior, is the source of extensive alluvial gold deposits in river drainage systems. A target at one of the properties is a bulk-minable gold deposit hosted in Silurian black shales. Mineralization typically occurs in zones of quartz veining and stockworks.

To define mineralization at that target (which is more advanced), Altoro plans to carry out mapping, channel sampling of both surface and underground workings, and diamond drilling. An exploratory adit is also planned.

In addition, Altoro and an Australian company have signed an agreement to explore for gold jointly in Brazil. A reconnaissance program will attempt to identify advanced projects with potential to host more than 1 million oz.

The Australian company will fund US$420,000 of the reconnaissance program, whereas Altoro will contribute US$93,000. Once that phase of work is complete, Altoro will be responsible for 40% of exploration costs.

To date, exploration has focused on eastern Brazil, in Para and Mato Grosso states. More than 150 projects have been examined, and several acquisition targets have been identified.