Under a joint-venture agreement, Cominco Resources International (TSE) may acquire a 60% interest in the Chachacomiri gold-silver property in Bolivia from Rio Amarillo Mining (VSE).
To do so, Cominco must spend US$1.2 million on exploration by June 30, 1996, pay US$1.6 million in stages by June 30, 1997, and complete a bankable feasibility study by June 30, 1998. If a production decision is made, Cominco will be required to pay an additional US$5 million to Rio Amarillo. The exploration target at Chachacomiri is a large-tonnage, low-grade, stockwork system of silver and gold mineralization.
The property covers two dacite dome structures on the Toro-Milcopaya Lineament, 12 km southwest of the Cerro Rico silver mine. That mine has produced more than 2 billion ounces of silver since Spanish colonial times, and the company believes the two properties are geologically similar. Exploration of Chachacomiri has outlined a strong induced-polarization anomaly coincident with strong silver, gold, arsenic and mercury geochemical anomalies overlying one of the domes.
Preliminary drilling will test the target early in the new year.
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