Bema options Salvadoran project

Vancouver — Bema Gold (BGO-T) has an option to earn up to a 75% interest in the high-grade Divisadero gold-silver property in El Salvador. The ground is held by Intrepid Minerals (IAU-V).

Initially, Bema can earn up to 60% of the project by spending US$2 million over three years, including a minimum of 3,500 metres of exploration drilling. It can then boost its stake to 75% by spending an additional US$2 million over the following two years. If the property is found to host a resource in excess of 2 million gold-equivalent ounces by the end of Bema’s fifth year, Intrepid can retain a 40% back in right by funding ongoing expenditures of US$4 million.

The 125-sq.-km property is 20 km northeast of the city of San Miguel in the lowland plateau of eastern El Salvador. Abandoned shallow underground mines dot the area, most of which were worked before 1920.

The property hosts vein swarms and associated stockwork zones in a Tertiary-aged volcanic package. These are cut by a northwest-trending structural corridor that measures 4 km long and up to 500 metres wide. Gold and silver mineralization is hosted in low-sulphidation epithermal quartz veins.

The chief attraction is the Carolina vein, which measures 100 metres long and 8 metres wide. Grades average 18 grams gold and 1,080 grams silver per tonne. This structure was mined prior to 1920, and again for a limited time in the late 1970s. Bema believes the property has potential to host multiple high-grade vein targets, as well as open-pit-minable bulk-tonnage stockwork zones.

Exploration work will begin immediately at Divisadero, the objective being to initiate diamond drilling in the fourth quarter of 2002.

Meanwhile, Bema and Consolidated Puma Minerals (CPW-V) have inked a deal that entitles Puma to earn up to a 90% interest in the East Pansky Platinum Palladium property in western Russia.

In return, Bema will receive 4 million Puma shares priced at 25 per share. In addition, the agreement allows Puma to settle $4.4 million of accumulated debt owed to Bema through the issuance of 13 million common shares. Bema manages Puma’s corporate affairs and, once the deal closes, will own about 64% of Puma’s shares.

Platinum group mineralization on the East Pansky property is hosted in sulphide-bearing horizons in a layered intrusion. The most prospective targets are the northern reef of the Churazorski zone and southern reef of the Pechampak zone. Exploration drilling there is under way.

Puma recently closed a non-brokered private placement for gross proceeds of $2.4 million, a portion of which will be used to explore East Pansky.