Australia-based Mariana Resources (LON:MARL) (TSX:MRY) , an exploration and development company focused in southern Argentina and Chile, announced Thursday it signed a Letter of Intent ("LOI") with Canadian junior Condor Resources to explore a gold deposit in northern Peru.
The deal involves Condor's 102 square kilometres Condor del Oro project located in one of the most significant under-explored gold-copper belts of South America, about 130km southwest of Kinross' Fruta del Norte gold deposit.
Condor has granted Mariana two choices for the company to earn up to a 51% interest and operate the Pucayacu Gold-Copper Property and the Yuracyacu Copper-Silver Property. Based on current geological prospecting, surface geochemical sampling, mapping and geophysics, the two separate extensive intrusive-related mineralized centres are approximately 8km apart.
The properties are characterized by broad alteration haloes, quartz stockworks, alluvial gold and highly anomalous precious and base metal geochemistry, each forming 4km2 target areas that have not been previously drill tested.
Under the terms of the agreement, Mariana has the right to acquire a 51% interest in each property within four years by incurring direct exploration costs of $12.5 million in exploration within four years as well as pay Condor $2.5 million in cash and/or shares for each property.
Mariana’s COO Ray Angus said the deal was an opportunity for them to drill “untested potential company-maker gold and base metal targets in this highly prospective belt in conjunction with our current on-going exploration programme in Argentina."
“The Pucayacu and Yuracyacu targets are among the most significant untested bulk tonnage porphyry gold-copper targets currently known within the Cordillera del Condor of northern Peru," added Patrick J. Burns, President and CEO of Condor in a separate statement.
Image: Panoramic view looking across the Yuracyacu gold and base metals mineralized target, courtesy of Condor Resources.