Exploration is set to begin on the Paron property in Peru.
Owner Arequipa Resources (VSE) has been awaiting regulatory approval for a special warrant financing completed in January. The placement raised $2.1 million from the issuance of 2.9 million shares at 75 cents each, and the balance of $1.4 million has now been released from escrow.
An initial drill program, budgeted at $650,000, will attempt to upgrade the current near-surface resource of 2 million tonnes grading 3.11 grams gold per tonne to the proven and probable category. Drillers will also test for extensions to the north, south and west.
In addition, Arequipa plans to start feasibility work, including further metallurgical testing.
Elsewhere in Peru, drilling is expected to get under way on the Ventana and Los Calatos properties under the direction of Asarco (NYSE) and Phelps Dodge (NYSE), respectively. Each company can earn up to a 60% interest in the respective properties by meeting certain cash payments and expenditures.
Both properties host large alteration zones and are believed to have the potential for secondary, enriched copper deposits.
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