The Conversation (0)
Oct. 29, 2012 07:28AM PST
Regional exploration managed under the Alliance Agreement between Estrella Gold (TSXV:EST) and Cliffs Natural Resources Exploration Inc. has identified and evaluated 35 target properties containing 51,100 hectares (511 square kilometers) over the last 20 months, as well as the discovery of the Yanac porphyry copper occurrence.
As quoted in the press release:
Estrella has discovered several exciting mineral occurrences which are being explored, including the Yanac porphyry copper occurrence. The Yanac Property contains 5,200 hectares of mineral lands which host a large zone of outcropping copper mineralization, extending 800 meters (N-S) by 400 meters (E-W). Estrella has nominated the Yanac property as a “Property of Merit” within the Alliance Agreement. Cliffs has 90 days to accept or decline the property as a new “Joint Venture Project”, until December 1, 2012. If accepted, Yanac will become a new Joint Venture Project, with a minimum US$500,000 first year exploration budget funded by Cliffs.
Eighteen (18) other properties (16,000 hectares) have been designated as Rejected Targets under the Alliance Agreement, and exploration of these properties will no longer be funded by Cliffs under the Alliance Agreement. These include 6 properties with 7,100 hectares that contain volcanic-hosted alteration systems, which have potential for discovery of precious metal mineralization. The properties contain variable amounts of favorable alteration including vuggy silica, hydrothermal clay, iron oxide with elevated trace element geochemistry including gold, silver, antimony, arsenic, or mercury. These six new properties will be explored independently and offered for Joint Venture to qualified parties from Estrella as part of the Company’s Prospect Generator Business Model.
Estrella Gold President and CEO Keith Laskowski said:
We are pleased with the success of our exploration alliance with Cliffs. The program has generated some exciting new discoveries which Cliffs may continue to pursue, and as a secondary benefit, we have received six new epithermal gold properties which do not fit the current objectives of our partner. The Alliance Agreement with Cliffs provides several paths to value for Estrella shareholders. We look forward to additional encouraging news in the coming months.
Click here to read the Estrella Gold (TSXV:EST) press release