Under a proposed 4-year option, Orko can earn an initial 51% interest in the properties by paying US$340,000 in cash, issuing 600,000 shares, and spending at least US$2 million on exploration. An additional 9% can be earned by spending an extra US$1 million within 18 months of the fourth anniversary of the agreement.
Orko also will subscribe for 388,000 units of TNR at 25 cents each. A unit consists of one share and half a share purchase warrant.
All exploration will be carried out by TNR and its contractor, Coast Mountain Geological, under the direction of Orko. Work is to begin immediately on the La Ortiga property, 7 km east of Argentina Gold’s Veladero property.
La Ortiga and the two other properties, Valle del Cura and El Fierro, comprise a total area of 365,708 acres and are situated 260 km northwest of the provincial capital of San Juan. Each of the properties encompasses one or more zones of hydrothermal alteration. Satellite imagery suggests that these alteration patterns are similar to known deposits in the area, Veladero being one example. Reconnaissance sampling on all three properties has identified numerous zones of anomalous gold and silver.
In related news, TNR Resources has arranged a brokered private placement of between 1 million and 2 million units. Each unit will be sold at 25 cents and is to consist of one share and half a share purchase warrant, with each warrant exercisable at 25 cents for one year. Canaccord Capital will be paid a commission of 7% of the proceeds; some of the remaining proceeds will be used to explore TNR’s projects in Argentina.
The company’s other properties in the country include Canada Honda, Cerro Negro, Los Azules and Las Carachas.
Canada Honda comprises 5,000 acres in San Luis province. TNR has joint-ventured the property to Australian-based Newcrest Resources, which can earn up to a 60% interest by spending US$2.2 million on exploration and paying US$200,000 in cash over four years.
Newcrest is carrying out a 1,200-metre drill program to test deep targets below historic reverse-circulation holes. Results are pending, though previous assays include: 2 metres grading 115.3 grams gold per tonne; 2 metres of 74.93 grams; and 10 metres of 15.65 grams. Chip samples from this past summer indicate that the surface gold anomaly extends farther than originally thought.
The Cerro Negro Property comprises 8,600 acres on the eastern slope of the Andes mountain range in San Juan province, southeast of the city of Rodeo. Sampling, drilling and geophysics have outlined several gold and copper anomalies that extend beyond the property’s northeastern border on to ground held by Battle Mountain Gold.
The Los Azules property covers 20,000 acres and is 175 km west of San Juan.
The Las Carachas property occupies 10,000 acres in northern San Juan within the Andes mountains. Sampling has identified anomalous values of gold, silver, lead, zinc and copper. To date, three discrete exploration targets have been identified: high-grade polymetallic veins, volcanic-hosted disseminated mineralization, and a porphyry system. TNR states that three major companies have expressed an interest in the property.
TNR has 8.5 million shares fully diluted and $150,000 in working capital.
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