Anglo explores Peruvian gold prospect

The Peruvian subsidiary of South African-based Anglogold (AU-N) has signed a letter-of-intent with Solitario Resources (SLR-T) to acquire an interest in the Sapalache gold property in northern Peru.

Anglogold Investments Peru can earn a 51% interest in the 170-sq. km property by spending US$6 million over four years.

The agreement calls for Anglogold to spend US$1 million within the first two years, including about 2,000 metres of drilling. The company would spend US$2 million in the third year, and US$3 million in the fourth.

Sapalache, formerly known as the Shimbe prospect, is 100 km north of the company’s Yanacocha mine and is hosted in similar Tertiary volcanic rocks. Solitario has conducted surface sampling and mapping on the property over the past three years. To date, field work has traced two altered and mineralized zones measuring up to 1 km long in total.

The agreement marks Solitario’s fourth joint venture in Peru. Others include the Bongara zinc joint venture with Cominco (CLT-T); the Soloco zinc joint venture with London-based Billiton; and the Yanacocha joint venture with Placer Dome (PDG-N). All of these are in the country’s northern region.

Solitario is 57.2% held by Crown Resources (CRRS-Q).