The Mexican subsidiary of Noranda can earn an initial 50% interest in the El Gordo property by spending $2.1 million on exploration and paying $140,000 cash over four years. A further 20% can be earned by spending an additional $6.3 million and paying $210,000 over three years.
Golden Temple acquired El Gordo through staking carried out in February 1997. Reconnaissance work has uncovered outcropping massive-to-semi-massive-sulphide mineralization in two areas. The mineralization is both banded and stratiform, with pyrite the dominant sulphide. The host rocks are carbonaceous argillites and phyllites of the Esperenza formation.
El Gordo is 30 km southeast of the Apolo-Venus property, which Golden Temple optioned to Noranda earlier this summer. Noranda can earn an initial half-interest by paying $100,000 in cash and completing $4 million in exploration over four years. By making additional cash payments of up to $300,000 and spending up to a further $12 million on exploration, Noranda can boost its interest to 70%.
The Apolo-Venus property centres on the Los Gavilanes prospect, where an old adit appears to cut through hangingwall alteration ending in stratiform massive sulphide mineralization. Channel sampling at 5-metre intervals within the adit revealed a true thickness estimated at 31 metres averaging 1.14% copper, 1.78 grams gold and 20 grams silver per tonne. Los Gavilanes is one of five gossanous areas identified to date. Neither Apolo-Venus nor El Gordo has been subected to any modern exploration, including drilling.
In a separate agreement, Noranda has optioned its third property from
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