Geomaque and Milagro settle merger dispute

Tussling juniors Geomaque Explorations (GEO-T) and Milagro Minerals have settled their differences and completed their merger.

Geomaque had balked at merging until outstanding legal issues regarding the title to Milagro’s principal asset, a 10,000-ha polymetallic concession in Honduras, were resolved. That property hosts numerous gold and base metal targets, including the Vueltas del Rio gold deposit, which has a drill-indicated resource of 300,000 oz.

Geomaque President John Paterson told The Northern Miner that all issues have been resolved, and the merger is now complete. Milagro ceased trading earlier this month and its shareholders received one Geomaque share for every four Milagro shares held.

With the merger now complete, Geomaque plans to begin an intensive diamond drilling program at Vueltas del Rio. The work will be carried out on 50-metre centres in order to define the known gold resource; drilling will then continue along strike, beyond the known resource. To confirm continuity, subsequent drilling will be carried out at 15-to-25-metre spacings.

A total of 6,000 metres of diamond drilling is scheduled for the first three months, with a feasibility study due late in the year.

“We’re confident that Vueltas del Rio will increase Geomaque’s reserves to more than 1 million oz. of gold and production to over 100,000 oz. per year,” Paterson said.

He added that Geomaque’s immediate goal is to bring Vueltas del Rio into production as quickly as possible at a minimum rate of 35,000-40,000 oz. gold per year.