A deal between Minas Buenaventura (BVN-N) and Rio Narcea Gold (RNG-T) will see the Peruvian company earn a 51% interest in Rio Narcea’s Santa Marina property in northwestern Spain.
Santa Marina, 2 km north of Rio Narcea’s El Valle gold mine, has a breccia-hosted gold prospect wher earlier drilling intersected significant grades. Buenaventura can earn its interest by driving a ramp to the 300-metre level and by completing a 1,100-metre drilling program. The company has two years to complete the work.
The decline and the drill program have a budget of Eur 2.2 million. Buenaventura can bump its interest to 70% by spending a further Eur 2.4 million on exploration, including some underground development.
A drill hole in 2000 intersected multiple zones of mineralization in the breccia, including a 1-metre interval grading 22 grams gold per tonne, a 2.5-metre interval grading 16.1 grams per tonne, and an 8.2-metre interval grading 2 grams per tonne.
The agreement is expected to close in late January.
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