Partners sign deal for Berenguela

A joint-venture agreement between Paramount Ventures & Finance (PVF-T) and Southwestern Gold (SWG-T) sets the stage for a new round of exploration at the Berenguela property in the department of Puno, in southern Peru.

Paramount can earn a half-interest in Southwestern’s property by spending US$500,000 on exploration over two years. Once Paramount has done so, the companies can form an equal joint venture to advance the project further.

The property covers the eastern extension of the Berenguela mine, which consists of massive replacement mantos and stockworks of

silver-copper-rich manganese oxides hosted by limestones, rhyodacite domes and breccia bodies. Reserves at this mine are reported to be 15 million tonnes grading 1.2-1.4% copper and 120-150 grams silver per tonne.

Southwestern will operate the work program, which will look for strike extensions of previously discovered high-grade, silver-copper mineralization hosted by limestones within its adjacent concession. Several targets have already been defined on the Berenguela property and will be tested in the 1999 drilling program.