Revolution Resources (RV-T) is set to make its mark in Mexico after the company closed a deal with Lake Shore Gold (LSG-T) to earn a 100% stake in four properties in prime gold-producing ground.
The four projects are known as Universo, La Bufa, Lluvia de Oro and Montana de Oro, with the latter three collectively known as Montana de Oro. All had been held by West Timmins Mining before Lake Shore acquired the company in November 2009, and all came with multiple drill-ready targets.
Past drilling at Universo returned 2 metres grading 121 grams gold, and historic production milled over 42,500 tonnes averaging 16 grams gold and 900 grams silver.
At Montana de Oro historic drilling hit 5 metres grading 9.58 grams gold and 121.8 grams silver. The La Bufa area had historical production of 907,000 tonnes at 2.9 grams gold and 2.5% copper. The Lluvia de Oro area also hosted small-scale past production of 91,000 tonnes at 95 grams gold and 865 grams silver.
But Revolution will begin its Mexican odyssey at Universo, where it has already started a three-drill, 7,000-metre program. The initial testing will focus on step-out targets from the historically producing zones with results due in January 2012.
Universo stretches out over 3,500 sq. km in the heart of a 300-km-long trend of precious and base-metal mines and deposits. The property is located to the south of Goldcorp‘s (G-T, GG-N) Camino Rojo gold-silver discovery and its Penasquito gold-silver-lead-zinc mine.
Also in the neighbourhood is Grupo Mexico‘s largest zinc mine, Charcas, which sits 20 km to the southeast, and New Gold‘s (NGD-T, NGD-X) Cerro San Pedro gold-silver mine, which is 100 km further south.
Despite the prime location, Revolution says only limited modern exploration has been done in the area, with the last known drilling occuring 18 years ago.
In order to acquire an initial 60% interest in the projects, Revolution will pay Lake Shore 9.9% of its common shares, spend $35 million on the properties by 2016 and issue Lake Shore another $1 million in shares once it spends $15 million.
To move up to a 100% interest, it must generate a technical report that outlines 3 million equivalent oz. gold over two properties and pay Lake Shore $20 per oz. in cash or shares.
Revolution’s current flagship properties lie within North Carolina’s Champion Hills trend.
On Dec. 14 – the day the deal’s closure was announced – Revolution’s shares were off 7%, or 2.5¢, to 32.5¢ on 390,000 shares traded, while Lake Shore Gold shares were off 5%, or 6¢, to $1.15 on 2.1 million shares traded.
Be the first to comment on "Another Revolution for Mexico"