Origin Gold has acquired 50% stake in a large mineral concession located in the department of Bolivar, Colombia from Mining Solutions.
The property known as La Pantera (the “Property”) covers an area of 1,734 hectares in the gold rich San Lucas Range. The concession is characterized by numerous conventional artisanal small scale mining sites. We observed the conventional underground mining operation on high grade gold narrow quartz sulphide veins, in addition to large areas where shallow open pit saprolite mining is being carried. Thickness of the saprolite covering is estimated to be about 10 metres.
The best value obtained for the high grade, narrow quartz veins from a limited sampling program performed by the Corporation and the independent consulting geologist was 169.6 g/t Au over 50 to 70 cm in width at Mina Bulla located in the east portion of the Property. Two samples from large zones of saprolite returned 1.0 g/t Au and 0.53 g/t Au.
A National Instrument 43-101 (“NI 43-101”) technical report on the Property, dated July 25th, 2018, was prepared by Pierre O’Dowd, BSc., independent consulting geologist, and has been filed on Sedar (www.Sedar.com). The author recommends a two-phase surface exploration program totaling US$269,000 consisting of mapping, sampling, geophysical survey and mechanical trenching in order to generate drilling targets.
Under the terms of the concession assignment agreement (the “Agreement”) dated July 14, 2018, Origin has purchased the Property for US$115,000 and the issuance of 1,000,000 of its common shares subject to a four month hold period. The owner will also receive US$8 as royalties for each ounce of gold recognized as Measured and Indicated resource (as defined by NI 43-101) identified by a 6 year exploration program. Upon production, a 2% net smelter is payable on the additional ounces of gold.
This transaction is subject to the TSX Venture Exchange approval.
Under a non-exclusive finder’s fee agreement dated May 8, 2018, in connection with the Agreement, Mr. Herman Garcia, an arm’s length party to the Corporation, will receive a finder’s fee of 225,000 common shares of Origin subject to a four month hold period and Exchange approval.
Source: Company Press Release