A deal with Brazilian company Minerazao Amapari will give Eldorado Gold (ELD-T) an option to earn 84% of the Vila Nova gold property in Amapa state, Brazil.
Under the deal, Eldorado pays US$5.2 million over three years, subject to an initial commitment to spend US$200,000 on exploration on the property before March 20 of next year.
The property covers about ten prospects, including two large garimpos, Santa Maria and Vicente. Mineralization is mainly hosted in folded banded iron formation in a Guyana Shield greenstone belt.
Eldorado has US$1.8 million budgeted for work on the property, including mapping, surface sampling and drilling. Channel samples on one prospect, Gaivotas, done by previous operators, shows surface widths mainly in the 1- to 5-metre range, with gold grades mostly 3 grams to 10 grams per tonne. The mineralization widens near the noses of folds and in sheared areas.
Brazilian government statistics put “formal” production from Vila Nova at around 20,000 oz. by the end of 1994. Minerazao Agua Boa operated a heap-leach mine at Vila Nova from 1994 to 1996, at an annual production rate around 10,000 oz. per year. Garimpeiro production, up to 1997, was estimated by geologists from Brazilian iron producer Caemi and the University of Brasilia at just over 80,000 oz.
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