LATIN AMERICA ROUNDUP — Juniors target Venezuela’s Km 88

The recent spate of legal disputes over rights to concessions has not prevented junior companies from seeking to tie up ground in Venezuela’s Kilometer 88 district.

Activity there is growing steadily, even though Placer Dome (TSE) has released little information about its Las Cristinas gold find which sparked the flurry of speculative interest in this historic mining district. In early May, Canarc Resource (VSE) announced an option to buy a Venezuelan company which owns the Guarimba property adjacent to Las Cristinas. The agreement calls for cash payments totaling US$3 million over 18 months. Guarimba is a 10,000-acre concession on which Corporacion Venezolana de Guyana (CVG) is exploring for alluvial gold and diamonds. Canarc reports that vein rights have also been applied for.

Canarc, in turn, granted an option allowing Consolidated Magna Ventures (VSE) to earn a 50% interest by making the first US$1.2-million cash payments and spending the first year’s exploration costs (estimated at US$200,000). Canarc and Magna share common management. The interest held by these two juniors could be subject to a 50% back-in at cost by Tombstone Explorations (VSE). Meanwhile, Queenstake Resources (TSE) has expanded its exposure to Venezuela through an agreement to earn 75% of a Venezuelan company which has a CVG mining contract to explore and exploit gold and diamond deposits on the Anacoco 5 and 6 concessions. The concessions, near a highway northeast of the Kilometer 88 district, are considered to have potential for the discovery of alluvial and subsurface gold deposits.

Although still subject to regulatory approval, Nevsun Resources (VSE) announced a letter agreement to acquire a Venezuelan company which owns the Oriental 5 concession in the district. Surface workings and mining sites are said to be on this concession.

Gold Vessel Resources (ASE) is another new player. The company signed an agreement allowing it to earn a 50% interest in the Choco-6 concession in the El Callao district. This concession includes both surface and deep mineral rights.