BHP drills Bolivian gold target

Partners Orvana Minerals (ORV-T) and Broken Hill Proprietary (BHP-N) have announced a 3,000-metre drill program to expand known mineralization at the Pederson gold project in the Altiplano region of western Bolivia.

Nearly half of the 15 holes will test northward extensions in the North Pampa zone, while four will evaluate the Toroca zone, southwest of the Main zone. The remaining holes will be drilled east of the Main zone.

Pederson has an estimated resource of 51.6 million tonnes grading 1.4 grams per tonne, equivalent to 2.3 million oz. gold.

Sediment-hosted gold mineralization is associated with an anticline in Silurian clastic sandstones and siltstones.

BHP acquired an option on the property in September 1998. Orvana controls the project with a Bolivian partner, Empresa Minera Unificada S.A. (EMUSA).

BHP can earn a 60% interest in the property by agreeing to spend US$800,000 in the first year on exploration and no less than US$1.5 million in subsequent years. The Australian major must also make annual option payments to Orvana.

BHP can earn a 70% interest in other properties in an exploration corridor extending north from Pederson. Orvana and EMUSA hold nine properties totalling 20,450 ha. These stretch for 240 km to the northwest, and include Vinto, Isvaya, Golden Snake, Candelaria, Nobel and four others. Each is said to contain similar Silurian sandstones and siltstones.