Vancouver-based
The company issued 12 million shares for the acquisition, as required under the terms of the letter agreement signed with the vendors last fall.
Metates is a large, low-grade, disseminated gold-silver project last explored by
The project also had high costs, owing to its rugged and remote location and the need to contain the acid-generating nature of the mineralized and waste rocks.
American Gold intends to carry out a work program aimed at enhancing the economics of the project. A key component of this work would be testing to examine alternative methods of oxidation so as to boost recoveries and lower operating costs.
Metates has a known resource, though it does not meet disclosure requirements under National Instrument 43-101.
Precious metal mineralization is associated with a quartz monzonite intrusion in a sequence of sedimentary rocks that are partially overlain by Tertiary volcanic rocks. Mineralization consists mostly of veinlets, pods and stockworks of various sulphide minerals.
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