IMPACT Minerals gains ground in Dominican Republic

Junior IMPACT Minerals (IPT-V) has entered into two separate option agreements with Energold Mining (EGD-V) on properties in the Dominican Republic.

IMPACT can earn a 60% interest in the Majagual concession by issuing 100,000 shares to Energold and spending $1.25 million on exploration over four years. The 3,200-ha property is 42 km northwest of the country’s capital, Santo Domingo, and has the earmarks of a gold and porphyry copper system.

IMPACT can also acquire 100% of the Dominican registered company Proyectos Mineras by issuing 100,000 shares to Energold and spending $1.25 million over four years. Energold will retain a back-in right for a 50% interest in Proyectos Mineras (which it can exercise, after the fourth year, by reimbursing IMPACT $1.25 million), with an option to buy a further 10% (by paying IMPACT an additional $1 million within one year of its back-in).

Proyectos Mineras has applied for seven exploration concessions totalling 26,642 ha along Los Ranchos, a Cretaceous-age volcanic rock formation that extends 180 km across the country and hosts the Pueblo Viejo gold mine.

Energold recently formed a similar type of arrangement with Double Creek Mining (DCM-V) concerning the Dominican company Inversiones Mineras, which holds exploration licence applications covering a 29,761-ha portion of the Ranchos formation.

Double Creek can acquire Inversiones Mineras by issuing 100,000 shares to Energold and spending $1.25 million on exploration over four years. Energold retains a back-in right for up to a 60% interest after the fourth year.

Energold holds an extensive portfolio of properties in the Dominican Republic and recently resumed drilling at the Centenario gold deposit on the Higo concession. Based on the previous drilling of 35 holes, the deposit is estimated to contain a resource of 1.2 million tons grading 0.18 oz. gold per ton.