Continental and Procoloro team up

Drilling is expected to begin in June on the Santa Cruz and Palmichala gold properties near Remedios, Colombia, following an agreement between Montreal-listed companies Continental Resources and Procoloro Resources.

Under the joint-venture agreement, Continental can earn a 45% interest by spending $US1 million over two years. Procoloro will retain a 45% interest in the properties, while Colombian partners will own the remaining 10%.

The adjacent properties, which comprise almost 500 acres in total, are both small-scale gold producers. Continental and Procoloro hope to prove up sufficient reserves to support large-scale production.

The agreement also allows the companies to develop exploration programs on gold-bearing alluvial deposits in the Remedios vicinity.

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