Aranlee Resources Ltd -
Rumi-Cori JV
Aranlee Resources Ltd
ARB
Shares issued 18600000
1998-04-01 close $0.08
Thursday Apr 2 1998
Also High American Gold Inc (HIAM)
Mr Stephen Kay reports
Aranlee has signed a letter agreement for a joint venture with High American Gold
on Aranlee's 100% held Rumi-Cori gold-copper porphyry proper covering
approximately 6,000 hectares in Salta Province, Northwest Argentina. The
property is about 135km west of the city of Salta within a relatively new precious
metal belt extending for over 300km from the Bolivian border in the north, along
the Chilean border, to the Barrick/Pacific Rim Diablillos silver-gold deposit in the
south. Rumi-Cori is one of Aranlee's nine precious and base metal porphyry
targets in this region. This agreement with High American is the company's second
within the mineralized belt during the past few months, the previous one being with
Rio Tinto for the El Acay gold-copper-molybdenum property about 80km to the
northeast of Rumi-Cori. At El Acay, an initial 2,000m drilling program by Rio
Tinto is scheduled to commence in early April this year as reported in Stockwatch
February 16 1998.
The Rumi-Cori property covers part of an extensive surface alteration anomaly
along the Diablillos - Inca Viejo mineralized trend on the eastern flank of a major
graben or fault block zone. It is adjacent to High American's Oesteroche
gold-silver porphyry prospect, where over 1,300 surface samples reported gold
values up to 12.7 g/t in rock samples and 111 g/t in soils related to a tourmaline
breccia pipe within an intrusive complex. To date, no sampling has been carried
out by Aranlee at Rumi-Cori.
Under the terms of the letter agreement, High American, as operator, must spend
US$500,000 in exploration expenditures and pay US$250,000 in option
payments over a three year period to earn a 70% interest in the property. Once
High American has earned its 70% interest the two companies will form a joint
venture company, with High American as the operator, to proceed with the
development of the property. Should Aranlee elect not to participate in the joint
venture company, then it would convert its 30% participating interest to a 1.5%
nsr royalty. High American can elect to buy out this nsr for US$1.0 million within
one year of making a decision to go ahead with commercial production from the
property. Should Aranlee elect to participate in the joint venture company, then
standard dilution will apply for non-contribution of funds.
(c) Copyright 1998 Canjex Publishing Ltd. canada-stockwatch.com
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