Orvana exploring El Tigre gold play

A first phase of exploration work is planned for El Tigre, a gold property in northeastern Sonora state, Mexico.

Orvana Minerals (TSE) has an option to acquire the property from Arendale of Houston. Arendale retains a 3% royalty for three years after a production start, increasing to 5% thereafter. Advance royalties of US$50,000 are payable every six months, and Arendale will also receive 10,000 common shares six months after signing plus a further 20,000 shares six months later. Mapping and sampling has identified widespread gold mineralization over an area measuring 350 by 500 metres. The mineralization is hosted by a silicic dome complex and appears to be both structurally and stratigraphically controlled.

The mineralized area also contains old Spanish workings, and Orvana says the property has never been drill-tested.

Drilling is expected to begin within six weeks.

Orvana has a number of other exploration projects outside of North America, including projects in Bolivia.