Vancouver – A first pass exploration program over the Ovoot copper-gold property in Zavkhan province, Mongolia has returned promising values for owner Planet Exploration (PXI-V).
The junior collected 54 grab samples from the property with the highest value coming in at 9.11 grams gold per tonne and 1.86% copper. Other results include 5 grams gold and 5.2% copper, 2.3 grams gold and 4.7% copper, as well as 1.6 grams gold and 3.3% copper.
In total, Planet holds four exploration licenses in the Gobi region of Mongolia and is currently evaluating further prospects.
Earlier this year, Planet inked a deal to acquire the Copalquin gold-silver property in Durango, Mexico.
“We view the Copalquin property acquisition as a tremendous opportunity for Planet to further diversify its exploration portfolio with a very exciting project,” says company President, Ranjeet Sundher. “Our joint exploration program on the Sidace Lake project provides us with the flexibility to expand our exploration activities within the constraints of our current resources and gives us another opportunity to participate in a new gold discovery.”
The new project lies in the Sierra Madre belt and hosts a series of parallel ridges of fault breccia covering 3 km. The property is considered prospective for both high-grade vein and bulk tonnage gold mineralization.
Under the deal, Planet must spend US$1 million on exploration, pay US$415,000 in staged payments and issue US$24,000 worth of stock over a 5-year period. At the feasibility study stage, Planet agreed to pay US$1 per oz of recoverable gold or its equivalent in recoverable silver. The vendor retains a 2.5% net smelter royalty, of which 1.5% can be bought for US$1 million.
The company’s main asset is the Sidace Lake property in the Red Lake area of Ontario where Goldcorp (G-T) can earn 50% interest in the property by spending and cash payments totalling $2.55 million over three years.
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