Anglogold inks deal in Colombia

Anglogold (AU-N) can earn a half-interest in a 100-sq.-km Colombian land package held by Conquistador Mines (CMG-V). In return, the South African-based major must spend US$2.5 million on exploration over five years.

Specifically, Anglogold is required to spend US$250,000 in the first six months plus US$500,000 over the next 12 months.

Meanwhile, Conquistador, which has been active in Colombia since 1996, can earn a half interest in the 990-ha Marmato property from Mineros Nacionales. The property carries an inferred resource of 5 million oz. gold and 25 million oz. silver in 150 million tonnes averaging 1.1 grams gold and 5 grams silver per tonne. The estimates are based on a cutoff grade of 0.5 gram per tonne.

Conquistador recently formed a subsidiary to explore for platinum group elements at the Abejorral property, the site of a possibly unmapped ultramafic igneous complex.

For Anglogold, the transaction with Conquistador follows a similar exploration deal in northern Peru with Solitario Resources (SLR-T) on the 170-sq.-km Sapalache project. The major will also explore some 110 concessions in southwestern Ecuador with Iamgold (IMG-T).

Anglogold operates the Morro Velho and Serra Grande gold mines in Brazil and the Cerro Vanguardia gold-silver mine in Argentina.