Alberta-listed OroGrande Resources, formerly known as Trev, intends to acquire an 80% interest in the Princeza gold mine property in Brazil’s Paraiba state.
The junior will spend $3.3 million and make option payments amounting to $1.7 million over three years, and issue a yet-to-be-determined number of shares.
The acquisition of the 2,600-hectare mine property includes 4,000 hectares of adjacent land holdings and a 500-tonne-per-day carbon-in-pulp mill. OroGrande’s objective is to enter production within 18 months. Intermittent mining, dating back to 1865, was performed on a system of veins measuring 1 to 3 metres in width. Estimated reserves stand at 42,000 oz. gold at an average grade of 0.19 to 0.22 oz. per ton. More than 1.8 million tonnes of tailings exist, and these are believed to contain an additional 100,000-150,000 oz.
Exploration potential exists along the strike and dip extensions of the vein system, and OroGrande believes a wider, disseminated gold zone may be associated with the system.
Other OroGrande projects include a planned drilling program for its two copper-gold properties in the Mexican state of Durango. Geochemical and geophysical surveys in 1994 identified eight drill targets on the properties, and four of the targets underlie high-grade copper-gold workings. In Jamaica, the company has amassed 25,000 hectares of land covering significant copper anomalies. Trenching is planned for one of the properties, situated north of its Bellas Gate concession of which BHP Minerals is earning a full interest from OroGrande.
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