VenCan options Honduran concessions

In a deal reached with a Honduran company, VenCan Gold (ME) can acquire four concessions hosting gold and silver mineralization.

The junior can do so by acquiring all the outstanding shares of Compania Minera de San Lorenzo, which holds the properties known as El Oro, San Nicolas, Cedros-Portillo and El Bufalo. In total, they comprise 10,000 hectares.

VenCan paid US$25,000 for the first option period, which expires March 10, 1995. This can be extended to April 30 by paying another US$25,000. In the 1880s, several gold mines operated on El Oro in the northwest. A program in 1989 outlined a northwest-trending, gold-copper-lead soil geochemical anomaly. Measuring 2,200 metres long by 50-150 metres wide, the structure is underlain by Paleozoic schists.

In the same year, prospecting on the San Nicolas gold-antimony property led to the discovery of a vein measuring more than 50 metres in length and which yielded assays as high as 18% antimony and 23 grams gold per tonne. The property later produced about 1,000 tons of concentrate averaging 55% antimony.

The other concessions, while having some historic gold, silver, lead and barite production, are at an earlier stage of exploration.

VenCan can acquire Minera de San Lorenzo by issuing 2 million VenCan shares. The Canadian company is currently conducting preliminary geological investigations on the four concessions.