A recently inked deal paves the way for Newmont Mining (NEM-N) to take up to a 65% stake in Solitario Resources‘s (SLR-T) La Tola gold property in southern Peru.
The world’s biggest gold miner can earn an initial 51% stake by spending US$7 million on exploration and development over four years; it can boost its stake by 14% by completing a positive feasibility and arranging project financing. Solitario retains a sliding scale net smelter return royalty interest on gold and silver production. The royalty ranges from 0 to 2.25%, depending on the gold price among other conditions.
Solitario discovered the 121-sq.-km La Tola property in late 2003, and has so far focused its efforts on an 8-km-long corridor of alteration and strongly anomalous gold and trace-element geochemistry. Disseminated and stockwork gold mineralization is hosted by a large low-sulphidation gold system within Tertiary volcanic rocks.
Newmont plans a program of geochemical sampling, ground geophysics and geologic mapping to define specific drill targets. A 2,500-meter drill program will follow.
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