Vancouver —
The latest arrangement sees Pan American getting 3.5 million shares. The producer also retains a 1.5% net smelter royalty on the property. The sale is expected to close in January 2004.
After the first deal, New Oroperu struck a separate deal with
A grassroots gold discovery immediately outside Pan American’s Quiruvilca mine land boundary in 1996 resulted in the formation of a 50-50 joint venture between the silver producer and Oroperu. Subsequent work by Oroperu and Battle Mountain Gold, which optioned the project in 1998 and 1999, included more than 34,000 metres of drilling and extensive metallurgical tests. Battle Mountain estimated an indicated and inferred resource totalling 1.6 million oz. gold in 30.4 million tonnes grading 1.65 grams.
Much of the contained gold is refractory in nature, requiring costly processing. After spending US$4.5 million on exploration, Battle Mountain deemed the project uneconomic and handed it back to Pan American and Oroperu in December 1999.
Barrick’s first bout of work included 4,000 metres of drilling in 14 holes. Hole 202 intersected 186 metres grading 1.2 grams gold per tonne on the east margin of the south zone deposit.
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