Orea signs binding LOI to acquire gold assets
Orea Mining announced the signing of a Binding Letter of Intent (BLOI) to acquire gold projects with an existing ore processing facility, including significant plant and equipment, in Colombia, South America.
“After evaluating numerous opportunities in 2020, Orea is delivering on its promise to add a quality gold project to its portfolio, in line with its responsible mining approach” commented Rock Lefrancois, President and CEO of Orea. “As our Montagne d’Or Gold Project in French Guiana has entered mine permitting, this new acquisition within the emerging Northern Andean copper-gold province will be the driver for exciting development and further growth in 2021” he added.
The Project lies within the northern San Lucas mountain range, northeast of the Colombian Central Cordillera. The region is known for its gold production since pre-colonial times, which is presently subject to prevalent formal and informal artisanal mining. The Project area is characterized by moderate topography and low elevations ranging from 40 to 700 meters above sea level.
As is recognized all over the northern San Lucas range, numerous small-scale near-surface artisanal underground mines are documented over the Project and surrounding areas. The mines are developed along narrow sulfide-rich quartz veins with economic grades in gold, silver, copper, zinc and lead. Within the northern San Lucas range these polymetallic veins are associated with granitic intrusion of Jurassic age.
A potential second phase of the gold mineralization has been recognized on the Project interpreted to be associated with younger porphyritic domes of Tertiary age, where mineralized vein systems exhibit epithermal textures with associated alterations. The relation of the polymetallic vein-type mineralization with buried porphyry-type gold-copper systems has not yet been investigated on the Project.
Mr. Lefrancois also commented “The acquisition of this large land package offers excellent exposure for the discovery of epithermal and porphyry gold-copper deposits for the implementation of industrial-scale mining in the region and almost immediate cash flow from the processing plant”.