Vancouver — With both the court and shareholders approving the merger of Pacific Rim Mining and Dayton Mining, the amalgamated company is wasting no time in getting back to work on the El Dorado gold project in El Salvador.
“The amalgamation of Pacific Rim and Dayton has created a new exploration and development company with a tremendous exploration asset and ample working capital and future cash flow to aggressively move the company’s exploration portfolio project forward,” says the company’s President, Catherine McLeod-Seltzer.
The combined entity began trading on April 16 as Pacific Rim Mining (PMU-T) and the company’s first task was to start planning a 7,000-metre drill program over its flagship project.
El Dorado is an epithermal gold project hosting 35 separate quartz veins, which combined tally 18-km in strike length. The historical El Dorado mine, targeting the Minita vein system and produced 78,000 oz of gold at an average grade of 9.6 grams per tonne. At last count, the indicated resource below the old workings tallied 799,200 tonnes grading 13.7 grams gold and 97.9 grams silver.
The focus of the initial program is to drill test additional vein targets throughout the epithermal system.
Realizing the need to add more ounces of gold to the existing resource, the company inked a deal to acquire the 35-sq.-km La Calera project, some 8-km to the west. The project hosts three principal gold-bearing veins. The best surface results came from the 1-metre wide Santa Rosa vein. Trench samples collected over a 500-metre strike length returned up to 30.8 grams gold.
Under the deal, Pacific Rim paid US$5,000 on signing the agreement and agreed to pony up an additional US$15,000 after completing a 2-month due diligence program. The junior must then spend US$375,000 on exploration and make annual payments totaling US$280,000 over 4-years. The owners retain a 0.5% net smelter royalty, which Pacific Rim can purchase for US$200,000.
“We are intrigued by the exploration potential of the La Calera project, either as a stand-alone or as an add-on to our nearby El Dorado gold deposit,” says Pacific Rim’s Chief Executive Officer, Tom Shrake.
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