The company can acquire the 47-sq.-km property by paying US$186,000 over three years and granting a 6% net profits return royalty upon commercial production.
Situated near the town of Puno, close to the Bolivian border, the property hosts a stacked series of flat-lying, stratabound horizons in Paleozoic quartzites. These gold-bearing mantos have been traced over an area measuring 700 by 500 metres and range from 0.6 to 1.2 metres in thickness. From three of the known mantos, Ecuadorian Minerals has taken 87 rock samples, which averaged 16.6 grams gold per tonne over an average width of 1 metre. Visible gold, up to 2 mm in size, has also been reported.
Underground workings from the Spanish colonial period provide access to the mineralization from two known adits, and it is from one of these, the Rosario adit, that local miners are currently producing gold.
Surface cover obscures much of the partially exposed mantos. Ecuadorian Minerals intends to carry out further exploration to determine the full extent of the known mineralization, as well as search for additional mantos. Drilling is expected to follow, provided permits and financing are forthcoming. Toward that end, the company has already begun possible joint-venture negotiations regarding the property.
Ecuadorian Minerals can also acquire a 55% interest in the adjacent concessions; the remainder is held by Peru’s largest tin producer, Minsur.
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