Orinoco doubles land holding in Brazil
PERTH (miningweekly.com) – Gold junior Orinoco Gold has doubled its tenement package in the Faina goldfields, in central Brazil.
The company said on Wednesday that the new tenement package was a significant extension to its Eliseo project, and offered similar geology and positive rock chip samples.
It also included the Charuto target, where historic drilling had defined an ore shoot and oxide zone.
Orinoco said that, with no upfront payments, the new additional ground generated immediate value for the company by delivering a substantial increase to the strike length of the Eliseo project, while also introducing several new targets in the immediate vicinity of both the Cascavel and Eliseo projects.
“As we rapidly progress the Cascaval and Eliseo projects, we are also targeting attractive strategic opportunities to grow our regional tenement package around these projects in the Faina greenstone belt,’ said Orinoco MD Mark Papendieck.
He noted that the tenements represent potentially valuable additions to the company’s already commanding ground position, extend the strike length of the Eliseo project to 3 km, build on prospective tenements around Cascavel, and add prospective ground near what was one of Brazil’s lowest-cost and highest-grade mines.
Under the terms of the transaction, Orinoco could earn up to 75% of the tenement package over the next two-and-a-half years. A 60% interest would be earned after Orinoco invested in exploration expenditure over a 30-month period, while also making modest milestone payments after months 18 and 30.
An additional 15% interest could be purchased at an agreed-upon rate.
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