The company recently announced that it has signed a letter of intent to gain a 100% interest in Novacan SA, a private Costa Rican gold company with 70 sq km of land in that country’s gold belt, along the Pan American Highway.
Black Cliff can acquire a 51% interest in Novacan by spending $200,000 on the property. The remaining 49% interest can be acquired in the second year of the agreement by paying $140,000 to Novacan’s present shareholders.
Initial work will concentrate on the Beta Vargas epithermal gold deposit which forms a small hill 600 m long, 200 m wide and 70 m high. Previous work at Beta Vargas estimated reserves to be 7.5 million tons averaging 0.038 oz gold per ton.
In the 1920s a horizontal adit was driven 200 m into the hill to follow a narrow, high grade gold vein. Sampling along the adit shows gold values of 0.06-0.13 oz in altered rock indicating down-dip continuation of the mineralized zone.
Three higher grade zones have been discovered within the deposit: 20 m of 0.13 oz; 26-30 m of grade 0.059-0.093 oz and 26 m of 0.055 oz gold.
In November, Black Cliff will continue its exploration program with trenching, drilling and heap leach tests planned. The object is to outline a reserve grading 0.05 oz gold suitable for open pit mining.
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