Buenos Aires-based junior Plata Mining (PMT-A) has signed an agreement with Chilean firm Exploracion y Desarrollo Minero (Explodesa) to form a joint venture for the exploration and development of Plata’s wholly owned Hualilan gold-silver-zinc property in Argentina’s San Juan province.
To earn a 65% interest in the property, Explodesa must spend US$3 million over thirty months. The company may terminate its commitment at any time, in which event the Hualilan property will revert back to Plata.
Based on several studies completed by Canadian and Chilean consultants during the mid-1990s (T.N.M., Sept. 1/97), Plata and Explodesa plan to carry out an exploration program at Hualilan using existing infrastructure and a new 500-metre-long access tunnel that will facilitate bulk sampling. Plata says that production could potentially get under way within 18 months.
Last fall, proven and probable reserves at Hualilan were pegged at 289,350 tonnes grading 12.7 grams gold and 47.5 grams silver per tonne, plus 2.3% zinc, 0.7% lead and 0.2% copper. Prospective resources total 663,950 tonnes grading 14.1 grams gold, 49.1 grams silver, 2% zinc, 0.5% lead and 0.2% copper. Potential resources were pegged at 9.4 million tonnes grading 2.7 grams gold, 15.5 grams silver, 0.6% zinc, 0.3% lead and 0.04% copper.
Over the last couple of years, Plata has expanded its holdings at Hualilan to 10,755 ha from 338 ha.
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