Queenstake gains ground in Uruguay

An option to acquire an 80% interest in Davinco S.A. gives Queenstake Resources (TSE) exposure to nine properties comprising more than 29,000 hectares in Uruguay.

Davinco acquired title to the concessions in 1992 when government reserve areas were opened to acquisition.

The properties are all in Precambrian greenstone belts within a 150-km radius of Montevideo, a port city and the capital of the South American country. Queenstake can buy 80% of Davinco’s outstanding shares by paying US$1.6 million over seven years and funding all exploration and property-holding costs.

Queenstake plans to outline drill targets on three properties.