Vancouver-based junior Armeno Resources (VSE) has formed a joint venture with a Japanese company to finance the development of a small silver-gold-lead-zinc deposit in Ecuador. Nissho Iwai of Japan has agreed to acquire a 50% stake in Armeno’s San Bartolome property and three other exploration prospects in Ecuador in return for US$1.25 million and a loan of US$1.25 million to construct a producing mine.
The San Bartolome property covers an area of about 1,977 acres and hosts proven and probable reserves estimated at 2.2 million tons grading 15 oz. silver, 0.01 oz. gold per ton, 0.65% lead and 1.9% zinc. Three other exploration properties covering nearly 21,000 acres around the San Bartolome claims are also included in the deal.
Armeno Vice-President Bedo Kalpakian says Nissho will undertake the marketing of ore produced from the mine, which is expected to begin production by December. Vancouver-based Benguetcorp Canada, a subsidiary of a Philippine company, will manage the property on behalf of the joint venture. Final completion of the deal is subject to various approvals by Canadian and Ecuadorian regulatory authorities.
Based on a previous report by Benguetcorp, annual production from the San Bartolome mine will be about 770,000 oz. silver and 400 oz. gold.
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