Canyon gains gold property in Brazil

Canyon Resources (NASDAQ) has extended its option on several mineral concessions in Brazil’s eastern Amazon region.

The decision follows the acquisition, by Toronto-listed Golden Star Resources, of a 14,000-hectare land position in the area.

Canyon subsequently acquired 64,000 hectares in the Rio Maria area from a Brazilian mining company. The property borders Golden Star’s Andorinhas property to the north.

To hold its property for the next year, Canyon paid the vendor US$74,500 initially, with payments due to escalate in subsequent years.

The properties cover a large, open syncline within a late Archean/early Proterozoic greenstone belt where local miners have produced an estimated 500,000 oz. gold from alluvial and bedrock deposits.