Arlo drilling in Panama

Junior Arlo Resources (VSE) has commenced diamond drilling on two properties in Panama.

At the Oro del Norte copper-gold concession, 110 km west of Panama City, six holes are being drilled in a 1,000-metre program. The objective is to test four targets, outlined by sampling, over a 2.5-sq.-km area extending along the northern contact of the Petaquilla batholith. The batholith’s southern contact zone hosts the Petaquilla-Botija copper deposits, owned by Adrian Resources and Metall Mining, as well as the Molejon gold deposit. At the other concession, known as Rio Liri and situated 240 km southwest of Panama City, Arlo is drilling eight holes in a 1,200-metre program. The goal here is to test two gold anomalies defined by soil and rock chip sampling. The anomalies measure 1 sq. km and half a square kilometre, and are within a zone of epithermal gold mineralization in the northwestern part of the concession.

Arlo is earning a half interest in Oro del Norte from Adrian Resources (TSE) and a half interest in Rio Liri from CEMSA of Panama, through payments and work commitments over a 4-year period.

The junior holds interests in 11 Panamanian concessions comprising more than 2,400 sq. km, and recently completed a 6-hole program on the Chorcha copper-gold concession. Results have yet to be released.

MK Gold (NASDAQ), which, with a 37% interest, is the majority stockholder of Arlo, holds a back-in right to a 45% direct interest in each concession on which a deposit is discovered. As consideration, it would be required to carry out a bankable feasibility study and pay Arlo’s capital costs through to production.