Orinoco Gold increases Eliseo project ground

THE BOURSE WHISPERER: Orinoco Gold (ASX: OGX) has doubled the size of its ground position in the Faina Goldfields of central Brazil.

The deal involves no upfront payments, which Orinoco claims adds immediate value for the company by delivering an increase to the strike length of the prospective Eliseo project while also introducing several new targets in the immediate vicinity of both the Cascavel and Eliseo projects.

“As we rapidly progress the Cascavel and Eliseo projects we are also targeting attractive strategic opportunities to grow our regional tenement package around these projects in the Faina Greenstone Belt,” Orinoco Gold managing director Mark Papendieck said in the company’s announcement to the Australian Securities Exchange.

“These represent potentially valuable additions to our already commanding ground position, significantly extending the strike length of the Eliseo project, building our prospective tenement position around Cascavel and adding prospective ground near what was one of Brazil’s lowest cost and highest grade mines.”

Orinoco said the new tenement package extends the Eliseo project as it has similar geology.

Rock chip samples (gold in panned concentrate from rock chips with assays pending) have extended over a strike length of more than three kilometres.

The company explained it had recently gained a greater understanding of the probable structural controls on mineralisation at Eliseo having recently completing a geophysical survey.

It now intends evaluating the resource potential of the enlarged Eliseo project.

 

Eliseo project map. Source: Company announcement

 

The newly-acquired tenements also include the Charuto target, where historic drilling defined an ore shoot and oxide zone, including 33 metres at 4.2 grams per tonne gold.

Charuto is located 5km north-west of Eliseo, and the company indicated it will be testing for repetitions and down-plunge extensions of the ore shoot defined by the historic drilling.

Orinoco can earn up to 75 per cent of the tenement package over the next two and a half years.

An interest of 60 per cent will earned by investing in exploration over 30 months and making milestone payments after 18 and 30 months.

An additional 15 per cent holding (total 75 per cent can be purchased by Orinoco at an agreed rate based upon agreed metrics.