VSE-listed Randstrom Manufacturing has added to its Mexican holdings by agreeing to acquire El Sultan, a gold project in Zacatecas state.
An agreement, subject to regulatory approval, allows the company to acquire the property by paying US$200,000 over 18 months, plus the greater of a 2.5% net smelter royalty or annual royalty payments of US$50,000. Discovered in the mid-1930s, the deposit was worked intermittently until about 1950. During this period, about 100,000 tons were mined and shipped to a nearby smelter. The reported mining cutoff grade was 1.7 oz. gold per ton. Randstrom President Randy Reifel said the style and metal associations of the deposit are strikingly similar to “Carlin-type” gold deposits. Other similarities include carbonate host rocks, a close spatial and genetic relationship with folding and high-angle pre-mineralization normal faults, intense brecciation, and quartz sanding. The deposits appear to have been formed in Tertiary times in a broadly similar, regional tectonic environment, he noted.
El Sultan is considered to have the potential to host more than one million ounces gold.
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