An exploration program by MacMillan Gold (MMG-T) will test a newly optioned gold property 200 km south of the Pierina gold deposit (owned by Barrick Gold) in western Peru.
MacMillan signed an option agreement allowing it to earn a 100% interest in the Armonia property from Westward Exploration (wwv-v) by paying US$250,000 before Dec. 25, 1997.
Upon completion of a feasibility study, the vendors are entitled to a royalty of US$2 per oz. gold on the first 500,000 oz. produced, and US$3 per oz. on production exceeding 500,000 oz.
Westward, meanwhile, can earn a 50% interest by making the option payment to the vendor and contributing US$1 million to exploration over four years.
MacMillan will remain the operator.
The Armonia property consists of five concessions and comprises more than 2,200 ha. MacMillan has also staked 3,000 ha surrounding the property.
The company says the land package is prospective for epithermal gold deposits, and notes that the Armonia property is hosted in Calipuy volcanics — the same formation that hosts the Pierina deposit.
Sampling on Armonia has revealed gold mineralization, including a 26-metre-wide zone averaging 2.09 grams per tonne.
Geological mapping, geochemical sampling and trenching will soon begin, with drilling scheduled to follow.
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