Hemlo, Orvana acquire Chilean property

Toronto-listed Orvana Minerals and senior gold producer Hemlo Gold Mines (TSE) are optioning the Esperanza gold property in northern Chile.

Hemlo will hold 60% and Orvana 40% of the joint venture, which plans to spend US$2.5 million on exploration over 4.5 years. Payments to the vendor total US$11 million over the life of the agreement.

Orvana will operate the project during the exploration phase, after which time Hemlo will assume management.

The Esperanza is 20 km northeast of La Coipa, the gold deposit now being worked by Placer Dome.

Several surrounding deposits and showings appear to belong to the same hydrothermal system as La Coipa. The principal known occurrence on the Esperanza is the Arqueros Tunnel prospect, where a 14-metre-wide mineralized zone has been traced for 164 metres along strike. The zone grades 3.8 grams gold per ton.