Eight drill holes are planned to test the potential of the El Tigre gold property in Sonora, Mexico. Orvana Minerals (TSE) has initiated the 1,200-metre drill program in order to check out a large, silicified intrusive flow-dome containing widely dispersed, visible gold at surface.
The mineralized area contains old Spanish workings, but Orvana says the property has never been drill tested.
Orvana and MK Gold (NASDAQ) have entered into a 50-50 joint venture on the exploration and development of El Tigre. The two firms are also partners in a gold-copper project in Kyrgyzstan.
El Tigre is owned by Arendale of Houston, Tex.; however, Orvana has an option to acquire the property by paying Arendale a 3% royalty for three years after a production start, increasing to 5% thereafter. (Advance royalties of $50,000 would be payable every six months.)
Arendale would also receive 10,000 common shares six months after signing plus an additional 20,000 shares six months later.
Further afield, Orvana has resumed drilling at the Pederson project in Bolivia, a joint venture with local partner EMUSA. An 18-hole program completed in 1993 had indicated the presence of a large, low-grade gold deposit, but work was subsequently suspended in order to deal with the concerns of local inhabitants.
Orvana reports that those concerns have been successfully addressed. The joint venture is now proceeding with a 2,000-metre infill drilling program aimed at outlining an open-pittable resource.
Be the first to comment on "Orvana drilling El Tigre prospect"