THE BOURSE WHISPERER: Genesis Minerals (ASX: GMD) has received notice from Canadian miner Teck Resources, through its subsidiary Teck Argentina, that it has elected to earn back a 60 per cent stake in the Australian junior company’s Las Opeñas project in San Juan, Argentina.
The decision is a return of serve in a tennis match, in which Genesis had notified Teck in December 2012 it had earned a 100 per cent interest to Teck’s rights and interest in the project.
Teck volleyed at the net by recently notifying Genesis of its decision to exercise its pre-emptive Back-in Right to earn a 60 per cent interest in the project by spending $1.2 million.
Teck plans to advance exploration at Las Opeñas in the coming months by targeting a large mineralised system encompassing wide zones of gold mineralisation with associated silver, lead and zinc Genesis had identified during its first drilling program at Las Opeñas during November 2012.
Las Opeñas drill hole locations and results. Source: Company announcement
Genesis explained the results it achieved from last year’s drilling had given support to its belief Las Opeñas has the potential to host a multi-million-ounce gold deposit in a large epithermal system.
The company said Teck’s decision to earn back into the Las Opeñas project was a positive one, which validated its belief in the project and its geological potential.
“The fact that Canada’s largest diversified mining company has elected to become operator and invest in further exploration at Las Opeñas is a huge vote of confidence in the Project,” Genesis Minerals managing director Michael Fowler said in the company’s announcement to the Australian Securities Exchange.
“The results generated by Genesis support our view that Las Opeñas has the potential to host a multi-million-ounce orebody.
“This belief can be further tested with the help of Teck’s immense knowledge and experience.
“Teck has a track record of exploration and development success at both 100 per cent-owned and joint venture projects in South America.
“We are delighted that Genesis’ shareholders stand to benefit from its involvement at Las Opeñas.”