Auger sampling has begun at the Guarimba property in the Kilometre 88 region of southeastern Venezuela.
By paying US$3 million cash, Canarc Resources (VSE) can buy the Venezuelan company which owns the property.
Consolidated Magna Ventures (VSE), which shares management with Canarc, can, in turn, earn a half interest by covering the first US$1.2 million in payments and funding exploration for the first year.
The interests are subject to dilution by Tombstone Exploration (VSE) which can back in for 50% by covering costs to date.
Canarc notes that the back-in right has been renegotiated down to 33% subject to certain considerations yet to be announced.
Guarimba is south of Placer Dome’s Cristina 6 claim and the west of its Cristina 4 claim. Placer’s Conductora discovery straddles the Cristina 4 and 5 claims, 4.5 km east of the Guarimba property boundary.
A cut grid has been established, at 200-metre intervals, over the entire Guarimba property and sampling on 50-metre intervals is half-finished. Sampling on the Northeast Corner area of the property covers an area of saprolite and old tailings, although high water levels made it impossible to sample old workings.
The sampling returned up to 0.5 grams gold per tonne in soils, up to 6.8 grams in tailings and up to 22.3 grams in quartz veins.
A modified auguring program is under way over the area. The program will total about 500 metres in fifty 10-metre-deep holes drilled on a 100-metre grid. The work is expected to establish areas of anomalous gold values in saprolite and would be followed up with diamond drilling.
Drilling has already started in the Northeast Corner area to provide geological information on known gold mineralization. The drilling will total about 500 metres in 15 holes, each up to 40 metres deep.
Auguring and drilling are also planned on the Spanish Workings area, in the centre of the property, after surface sampling is complete. Over the past 30 years, up to 30 garimpeiros (regional miners) have worked surficial gold deposits there.
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