Poposa, San JuanTerreno has signed an option agreement with a private consortium of title holders to earn up to a 100% interest in the "Poposa" property located in the San Juan province of Argentina.
A press release with recent results can be seen here.
The Poposa gold-copper-silver project is located within the Veladero-El Indio gold belt on the Argentine side of the Andes. This belt is fast becoming an attractive area for major mining companies that are investing substantial funds exploring for world class gold deposits.
The Poposa land-holding covers over 7,200 hectares of intensely altered sedimentary and intrusive rocks that represent the upper levels of two or more large porphyry-related hydrothermal systems. The Company is impressed with the magnitude and intensity of the alteration systems and the highly anomalous gold and copper values from previous explorer's trench sampling. The Company has completed its initial phase of technical and legal due diligence on the property and has initiated a program to compile and analyze earlier data. The Company plans to develop an exploration program for La Poposa which will be announced in the near future.
The complete set of previous explorer's significant drilling and trench sampling values has been obtained by the Company. Highlights from historic work (Minera Argentina Gold S.A. in 1994) include a significant number of high grade results, including:
|Hole ID||From||To||Thick (m)||Au g/t||Ag g/t||Cu%|
Terreno can earn up to 100% interest in Poposa. From an initial down-payment in 2010 up until December 31, 2015 the Company will, based on achievement of pre-determined technical and commercial objective results invest up to $5,630,000 on property expenditures and make payments of up to $2,340,000 plus 6,000,000 shares to the Vendors in order to earn 100% ownership of the property. In 2010 the Company advanced $80,000 to maintain the property in good standing and pay $100,000 to the Vendors in addition to issuing 800,000 shares. These initial payments earn the Company a 10% interest in the La Poposa property. A 2% Net Smelter Royalty ("NSR") payable to the Vendors is also contemplated in the agreement. The Company has the right under the NSR agreement to acquire 1% of the NSR for $2,600,000 and the further right of first refusal to acquire the remaining 1% at the price and terms equal to those offered by a qualified third party. All cash payments quoted are in US$.
Completed Work Program
•Camp setup complete and road building ongoing
•Detailed mapping - Q4/2010 to Q1/2011
•CSAMT geophysics program commenced (100 metre line spacing) - Q4/2010 to Q1/2011
•Re-logging/assaying old core underway - Q4/2010 to Q1/2011
•Five line Titan survey - Q1/2011
•Confirmation and new trenching - Q1/2011
•Results to be interpreted during Argentina winter (May to Sept)
•Drilling - Q4/2011