Vancouver-based Venezuelan Goldfields (VSE) is planning to spend about US$4 million during the next two years to explore gold properties in the Kilometre 88 area of Venezuela.
The first priority will be the Oro Uno property, President Ian Telfer told a group of analysts in Toronto. Vengold has about $20 million in its treasury, he added.
Airborne geophysics, geochemical and geophysical work, trenching and drilling are planned. Vengold has applied for the deep-rock rights on its properties and Telfer said a decision is expected soon.
Vengold has about 18.5 million shares outstanding (22 million shares diluted). Its major shareholder is Robert Friedland, whose 22% interest is expected to be diluted as the company issues more shares to raise funds. Known for its oil production, Venezuela has a population of about 20 million. It is being governed by an interim president, with elections expected in December.
About 18 months ago, the government reduced the resource tax rate to 30% from 87% and physically relocated the “pick-and-shovel” miners from the Kilometre 88 area, Telfer said.
Among the government’s proposed mining law changes is a streamlining of the concession-granting process, he said, adding that legislation will not likely be passed until after the elections.
Exploration by Placer Dome (TSE) brought Kilometre 88 into prominence. An announcement by Placer on reserves at its Las Cristinas
property is expected later this year, possibly during the third quarter. Telfer, formerly vice-president of TVX Gold (TSE) and familiar with mining in South America, joined Vengold earlier this year. Vengold’s vice-president of finance, Glenn Ives, formerly worked for TVX in Toronto and the vice-president of operations is a former manager of TVX’s La Coipa gold-silver mine in Chile.
Be the first to comment on "Vengold makes exploration plans"