Magellan Gold Corp (OTCMKTS:MAGE) has updated on its Peruvian Niñobamba exploration program, announcing that it has acquired additional concession that significantly expands its silver/gold mineralization holding in Niñobamba region.
The company said that following the outcome of an exploration program carried out by Newmont Mining Corp (NYSE:NEM) about seven years ago, it has been encouraged to increase its land package in Niñobamba because it believes the prospects of the project are bright.
According to Magellan, during Newmont’s exploration yielded 1.19 grams of gold per ton on the average at intersected 72 meters.
Land package expands to more than 9 acres
The Niñobamba exploration is a joint venture between Magellan and Rio Silver. Magellan the additional concession is set to consolidate their land package in Niñobamba silver/gold trend to more than 9 acres or 36.5 square-kilometers.
According to Magellan, they are waiting for title to the newly acquired parcel from the Peruvian Ministry and they expect to receive it 1H17. Magellan’s CEO Pierce Carson added that the additional concession will extend the known silver/gold mineralization under their control to more than six kilometers to the east-west. While the newly acquired concession is to the western end, Magellan said its main Ninobamba concession is to the eastern end of the silver/gold trend.
Magellan further said Niñobamba project is located in an excellent where infrastructure is available, suggesting that it expects smooth operation.
50% claim to the business
Magellan has a 50% claim to the Niñobamba project, according to an agreement the company signed with its partner Rio Silver and announced in October last year. However, for Magellan to earn intact 50% interest in the project, it must invest $2 million in exploration in next three years. Magellan said they have made progress in the project and are hoping to ramp up the exploration program this year. Currently, they are compiling technical database and prioritizing targets.
Other notable stocks in the gold and silver sector include the likes of giants Barrick Gold (NYSE:ABX), Newmont Mining (NYSE:NEM), Eldorado Gold (NYSE:EGO), Sandstorm Gold (NYSEMKT:SAND) and Silver Wheaton (NYSE:SLW).