A dispute between
In February, Cambior terminated its option to purchase the property from Gitennes. According to the deal, financially troubled Cambior was required to transfer all its rights, title and interest in the property to a Peruvian affiliate of Gitennes.
As a result of the dispute, Cambior has been unable to transfer the property. The junior is currently reviewing its legal options.
Prior to dropping the property, Cambior reported that, according to an in-house resource estimate, the Rio Suro gold zone at Virgen contains 12 million tonnes grading 1.22 grams per tonne. The estimate is based on 56 previously drilled surface and underground holes and 38 new infill holes completed by Cambior last year. Based on a cutoff grade of 0.4 gram gold, the deposit was found to host a measured resource of 3.5 million tonnes grading 1.62 grams gold, an indicated resource of 8.6 million tonnes grading 1.05 grams, and an inferred resource of 4.4 million tonnes grading 0.86 gram.
The Rio Suro zone is an oxide gold deposit discovered by Gitennes in 1997. In December 1998, Cambior entered into an option agreement to buy the property for US$7 million in cash, payable in three payments over three years. Cambior paid US$2.5 million on signing but returned the property to Gitennes before paying the second US$2.5-million payment.
Initial metallurgical tests by Gitennes indicated that run-of-mine ore may be heap-leached, with a minimum gold recovery of 80%.
Rio Suro is one of 10 mineralized gold zones in nine exploration concessions that comprise the Virgen property. Some of the less explored targets are the Centro, Alumbre, Paloquian and Cuchi zones.
In related news, Gitennes has optioned 15 sq. km of promising base metal ground in southern British Columbia. Under the deal, the junior can take a 100% stake in the property by paying $30,000 and issuing 200,000 shares by Oct. 15. The company must then make annual payments totalling $340,000 over four years. The local claim-owner retains a 1.25% net smelter return royalty.
The company is releasing limited information because it is enlarging the property by staking additional claims.
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