Battle Mountain, Orvana option Chilean property

The Copper Line joint venture of Battle Mountain Gold (BMG-N) and Orvana Minerals (ORV-T) has reached an agreement-in-principal with the Chilean state mining enterprise Codelco that will expand the joint venture’s land package in the Maricunga district of Chile.

The agreement, which has yet to be approved by the boards of directors of Battle Mountain and Orvana, permits the joint venture to earn a 70% interest in the 89-sq.-km Quebrada Valiente property, which is adjacent to the Tamberia property, also held jointly by the two companies. Battle Mountain, which will hold a 42% interest, and Orvana, which will hold 28%, must spend US$3 million over five years. Codelco will retain 30% and fund its share of the work.

Quebrada Valiente lies along the trend between the gold deposit known as El Hueso, now operated by Homestake Mining (hm-n), and the gold mine known as La Coipa, held by Placer Dome (pdg-t) and TVX Gold (tvx-t). The known mineralization at the property exists in breccias and quartz stockworks along a fracture system that strikes north-northwest. Rock chips taken from a series of trenches crossing the mineralized structure showed average silver grades of 218 grams per tonne, with erratic gold grades up to 27 grams per tonne.

Alteration and mineralization styles suggest that the silver mineralization may occupy the top of a larger epithermal system, with gold values increasing at deeper levels. The joint venture plans to begin carrying out mapping, trenching and drilling in September or October.

Orvana is still showing its Don Mario gold prospect in Bolivia to potential partners, though the recent drop in the gold price derailed the company’s intended schedule. Several companies have submitted proposals, and a number of others have signalled their intention to bid. The choice currently facing Orvana is whether to bring in a partner on Don Mario (forgoing that partner’s share of the project’s cash flow) or complete a feasibility study at its own cost (thereby limiting the amount it can spend on exploration on other projects).