Barrick Gold (TSE) will buy up to 70% of Pacific Rim Mining’s (VSE) wholly owned Argentine subsidiary, setting the stage for expansion of the Diablillos gold-silver property.
An aggressive program consisting of 5,000 metres of diamond and reverse-circulation drilling has been suggested by Pacific Rim’s consulting geologist James Mustard.
Last year, a 2,000-metre drilling program was carried out on the Oculto zone.
Geological reserves, outlined in five separate zones, total 5.1 million tonnes grading 2.07 grams gold and 211.93 grams silver per tonne.
Barrick will be required to pay US$1.5 million up front for an initial 10% interest in the subsidiary. This can be increased to 25% after the first year by paying a further US$2 million; to 45% after the second year by making an additional US$3-million payment; and to 70% after three years with a further US$4-million payment. At this stage, the company will be required to pay an additional US$4 million per year until a production decision is made. Situated in the northwestern province of Salta, the 3,600-hectare project is Pacific Rim’s main asset.
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