Golden Arrow Resources Corp (TSX-V:GRG, OTCQB:GARWF) said it has optioned its Mogote copper-gold project in Argentina’s San Juan Province to Australian-based mineral exploration company Syndicate Minerals Pty.
The Vancouver-based company noted that this is the third property option it has completed since early 2021 as part of its strategy to build a secondary value stream through joint-venture advancement of non-core exploration projects from its more than 180,000-hectare (ha) property portfolio in Argentina.
"We look forward to this partnership with Syndicate to advance Mogote, providing another excellent opportunity for us to build value for our investors at no cost to us,” the company’s chairman, president and CEO Joseph Grosso said in a statement. “Our previous success at Chinchillas left us strongly funded for exploration without further dilution to our shareholders and our team is focused on repeating that achievement at our new 100% held San Pietro copper project in Chile while continuing to advance our other core projects through our five-step exploration process.”
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Golden Arrow said the Mogote project includes over 8,000 hectares of property in the northwest of San Juan province and has seen only 12,000 metres of drilling but has multiple porphyry and epithermal targets.
Mogote is directly south and adjacent to the new Vicuna copper district established by the Lundin group of companies, including the Filo del Sol, Josemaria and Los Helados deposits. It abuts the Filo del Sol property, where the large porphyry copper-gold system associated with a high-sulphidation epithermal copper-gold-silver deposit is located approximately 2 kilometres (km) to the north. Los Helados, one of the largest undeveloped copper-gold resources in the world, is approximately 25 km to the north of Mogote, and the Josemaria feasibility-stage copper project is approximately 15 km to the northeast.
However, Golden Arrow cautioned that proximity to a mineral resource, deposit, or mine does not indicate that mineralization will occur on its property, and if mineralization does occur, it will be in sufficient quantity or grade that would result in an economic extraction scenario.
The company said the agreement, executed through its wholly-owned Argentine subsidiary, allows Syndicate to earn an 85% interest in Mogote.
An initial 80% interest can be earned by spending $5 million on exploration at the project over five years and making cash payments of $1.9 million over five years, including a payment on signing of $150,000.
After completion of the option earn-in, Syndicate has the option to complete a feasibility study and earn a further 5% interest. After that, a joint venture company will advance the project on a pro-rata basis, with provisions for dilution.
Syndicate Minerals has projects across Australia, exploring for gold, copper, lithium, and tin. With a strongly funded treasury, the company is focused on expanding its asset portfolio in Latin America.
A member of the Grosso Group, Golden Arrow is exploring a portfolio that includes an epithermal gold project in Argentina, a district-scale frontier gold opportunity in Paraguay, a base-metal project in Chile, and more than 180,000 hectares of properties in Argentina.
Contact the author at stephen.gunnion@proactiveinvestors.com