Vancouver-listed Southern Rio Resources has dealt Aur Resources (TSE) an option to earn 75% of its Patagonia gold property, which straddles the boundary between Chile and Argentina.
Aur can earn a 60% interest by spending $4.1 million on exploration and paying $400,000, before May 1, 2000. It can increase its stake by an additional 15% by spending another $6.8 million on exploration. Aur has also taken a placement of 230,770 Southern Rio shares at a total price of $150,000, with attached warrants.
The property, 15 km east of Coyhaique in the southern Chilean province of Aisen, contains gold and silver showings in quartz veins, stockworks and breccias. These form in north-to-northeast-striking faults in altered volcanic and sedimentary rocks. The host rocks are also intruded by intermediate to felsic stocks.
Drilling has been limited, with the best results to date grading 1-4 grams gold and 5-39 grams silver per tonne over widths of 2-13.8 metres.
Aur will, over the next 12 months, carry out a $500,000 program of surface mapping, geophysics, trenching and drilling.
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