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Estrella Gold Corporation (TSXV:EST) is moving ahead with project exploration and the search for new projects. The Company has implemented an ongoing program of operating cost reductions through reductions in administration costs and property holding costs.
As quoted in the press release:
- Exploration work is planned for the Yanac Project and will be funded by Cliffs. Further updates will be provided in the coming months as exploration progresses. Cliffs and the Company formed a 50-50 JV in February 2013 and Cliffs must spend a firm commitment of US$500,000 in year one on exploration or pay the same amount to the Company, with an additional work or payment amount of US$250,000 required to maintain Cliffs’ interest beyond year one.
- The La Estrella Project funded by Mines Management will continue exploration for a second year. Mines Management is currently awaiting permits to accommodate an expanded area for drilling. The year 2 expenditure requirement is US$500,000 as part of a total of US$5 million to be spent on exploration and US$600,000 in cash payments to be made, along with the preparation of a preliminary economic assessment on a defined resource, to earn a 75% interest in the project by March 4, 2016. Per the agreement, Estrella’s 25% interest is carried to production with proportionate costs paid back to Mines Management from production profits.
- Estrella’s Isy project makes up a part of the Sami Project owned by Lara Exploration. Lara Exploration has an option to purchase the Isy claims from Estrella by paying US$80,000 (paid) and US$175,000 over the next two years, and issuing 50,000 shares to Estrella. Estrella will also receive a 1.5% NSR on the project.
- Esperanza’s (60%) Joint Venture with Estrella (40%) on the Pucarana Project is approximately 7 kilometers from Buenaventura’s high-grade underground Chipmo Mine and 15 km from the Poracota mine which has become one of the largest gold producers in South America. Estrella is currently in the process of finalizing a 60-40 joint venture agreement with Esperanza on the Pucarana project.
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