The Mogote copper-gold project in Argentina, owned by Golden Arrow Resources (TSXV:GRG), will be optioned up to 85% to Syndicate Minerals. The Australian mineral exploration company will have the option to earn an 85% interest in the Mogote project, which has already undergone 12,000 metres of drilling. An Argentinean subsidiary of Golden Arrow Resources will sign the agreement.
Golden Arrow has been looking to develop secondary value streams, and joint venture projects like this one from its 180,000-hectare property portfolio in Argentina portfolio are one way of doing that. Joseph Grosso, executive chairman, president, and CEO of Golden Arrow Resources, commented: “We look forward to this partnership with Syndicate to advance Mogote, providing another excellent opportunity for us to build value for our investors at no cost to us. Our previous success at Chinchillas left us strongly funded for exploration without further dilution to our shareholders and our team is focused on repeating that achievement at our new 100% held San Pietro copper project in Chile while continuing to advance our other core projects through our five-step exploration process.”
Syndicate Minerals will need to spend $5 million on exploration in the following five years and pay $1.9 million in additional cash for the period to earn an initial 80% interested in the Mogote Project. This option earn-in is the first step, to be followed by the option to complete a feasibility study for the additional 5% of the project. Golden Arrow Resources and Syndicate Minerals will form a joint venture company, which will be responsible for advancing the Mogote project. Some provisions for dilution have been made.
The project holds over 8,000 hectares in the northwest San Juan province of Argentina, where 12,000 metres of drilling have already been completed. The project contains several areas of high-grade mineralization with potential for open-pit mining operations. A number of geophysical anomalies have been identified as well that are yet to be drill tested. It holds potential for multiple porphyries and epithermal targets which would be valuable to the project and both companies.
Golden Arrow has also initiated drilling at the Libanesa project, which will drill up to 2,000 metres in holes from 75 to 250 metres in d depth. The company’s other projects also include Cerro Redondo, Legunita, and Lagunita West, where testing will begin shortly
Copper porphyries are commonly found in the Andes mountain range. They are large igneous intrusions that contain high levels of copper and other valuable metals. Epithermal deposits are another type of target that is often found in the same region as porphyries. These are hot springs that can leave behind high-grade mineralization, including gold and silver.