Bolivar acquiring Nena concession

Bolivar Goldfields (VSE) can acquire a gold concession previously worked by local miners in the Chicanan district of Venezuela.

The 2,000-hectare Nena concession is south of a gold discovery made by Goldfields of South Africa. It also covers an extension of the Chicanan shear zone, the controlling mineral structure in the region.

The concession was intensively worked at surface by local miners after its discovery in 1989. This work exposed a system of mineralized quartz veins, lenses and stockworks in highly kaolinized rocks within a deep pit. This system is open along strike and at depth and provides an immediate drill target.

The acquisition is expected to be completed by the end of January, subject to regulatory approvals and completion of legal title transfers. To acquire an 80% interest, Bolivar must pay US$6 million on closing. The agreement also calls for royalty payments (US$3-US$4 per oz.), and expenditures of US$5 million on exploration and feasibility studies over three years.

Once the acquisition is complete, Bolivar would have majority interests in 49,000 hectares of concessions in four mining districts in Bolivar State: El Callao, Chicanan, Marwani and El Dorado.