Business
Enters into agreement for the
Enters into agreement for the.
About this update from Hochschild Mining Plc
[{"type":"text","content":"\n RNS Number : 1605W Hochschild Mining PLC 15 November 2010 \n \n\n \n______________________________________________________________________ \n \n15 November 2010 \n \nHochschild enters into option agreement for the Valeriano property in Chile\n \nHochschild Mining (\"Hochschild\" or \"the Company\") is pleased to announce that it has entered into an option agreement with Sociedad Contractual Minera Valleno for the Valeriano property which is located 27 kilometres north of Barrick Gold Corporation's Pascua Lama project. The Pascua Lama project has reserves of 17.8 million ounces of gold and 671 million ounces of silver[1]. \n \nThe Valeriano project covers an area of 3,750 hectares in close proximity to the Argentinian border and hosts both high-sulphidation as well as porphyry style disseminated gold mineralisation. The property has been explored by a number of mining companies in the past including Phelps Dodge (1989 - 1991) and Barrick (1995 - 1997), both of which completed drill campaigns totalling 12,575 metres. No significant exploration has been undertaken at the property since 1997. A number of highly mineralised intercepts have been reported from this drilling including:\n \n· 100 metres at 1.37 g/t Au in typical shallow high sulphidation style mineralisation starting at 19 metres depth\n· 41 metres at 0.61 g/t Au, 12 g/t Ag and 0.30% Cu, porphyry type mineralisation starting at 70 metres depth \n \nUnder the terms of the option agreement, Hochschild has the right to earn 100% into the project by undertaking exploration work and committing to make certain payments over a three year period. Upon signing, Hochschild made a payment of $500,000 to Sociedad Contractual Minera Valleno and has committed to spending $1 million during 2011 which includes 2,500 metres of drilling. An additional $3 million work commitment is required in the subsequent two years. At the end of 2013, a final payment of $5 million is required to complete the option agreement. \n \nExploration work is due to start immediately with a review of the existing data set and re-interpretation of geophysical data. Field work to be completed in 2010 will include sampling and mapping surface exposures and acquisition of deep IP and r...