Genesis Minerals (ASX: GMD) has entered into an agreement with Teck Argentina, a subsidiary of miming behemoth Teck Resources (NYSE: TCK), to acquire two high grade gold projects in San Juan Province, Argentina.
Genesis executed agreements providing the company exclusive rights to acquire a 100% stake in Teck’s epithermal gold projects, Poncha and Los Openas.
The terms include that Genesis will issue Teck 250,000 Genesis shares, being 50,000 in consideration for Los Openas and 200,000 in consideration for Poncha.
Results from one historical exploratory drilling hole at Poncha include:
- 266 metres at 1.21 grams per tonne (g/t) gold, including;
- 22 metres at 3.01g/t gold, 5.4g/t silver and 0.3% zinc; and
- 61 metres at 3.04g/t gold containing 4 metres at 10.84g/t gold and 7.9g/t silver, and 8 metres at 10.91g/t gold and 24g/t silver.
Los Openas has the potential to define a high grade gold silver deposit.
Michael Fowler, managing director of Genesis, said "This is a fantastic opportunity for Genesis to discover a high to bonanza grade epithermal gold deposit.
"These projects fit very well with our high grade gold projects in Chile and we look forward to commencing exploration in the coming months."
Adding to the prospectivity of the area, there are a number of drill ready targets at both projects.
A 4,000 metre drilling program has been planned at Poncha commencing immediately, as drilling at Los Openas will focus on testing the 4.5 kilometres of high grade vein structures.
Both projects are located 200 kilometres northwest of San Juan and 40 kilometres northwest of Rodeo.
The area maintains good infrastructure and there is access to the projects via paved and gravel roads from Rodeo.