Second News Release of the day... should make for an exciting day tomorrow or when PVO resumes trading.
JOINT ANNOUNCEMENT
PERUVIAN GOLD LIMITED AND KOOKABURRA RESOURCES LIMITED
REACH OPTION AGREEMENT ON THE OLLACHEA GOLD PROSPECT - PERU
Mr. Don Rotherham, Director, Kookaburra Resources Limited (TSE:KOB), is pleased to announce that its fully owned Peruvian subsidiary, Minera La Esperanza S.A., has signed an option agreement to purchase 100% of the Peru 3 claim (covering the Ollachea Gold Prospect) in exchange for payments of US$220,000 over two years and 200,000 fully paid shares in Kookaburra Resources Limited. Minera La Esperanza already owns 100% of the Hope 2 (900 hectares) and Esperanza 1 (800 hectares) claims, which are contiguous with the Peru 3 claim (1,000 hectares), located in the Puno Department, north-west of Lake Titicaca, in south-eastern Peru.
Mr. Rotherham and Mr. David Henstridge, President of Peruvian Gold Limited (VSE:PVO), are also pleased to announce that subject to regulatory approval, Minera La Esperanza has granted an option to Minas Dixon S.A., the fully owned subsidiary of Peruvian Gold Limited, to acquire a 70% interest in all three claims. Minas Dixon can earn its 70% interest by producing a positive feasibility study that justifies production and complete the following option payments: 22,500 fully paid shares of Peruvian Gold Limited and US$20,000 upon signing; 42,000 fully paid shares of Peruvian Gold Limited at the end of year 1; and 54,000 fully paid shares of Peruvian Gold Limited at year 2.
During year 1, Minas Dixon will undertake surface mapping and sampling programs followed by a drill program. Minas Dixon shall have the right to withdraw anytime up to six months from signing of the option agreement. After six months and before twelve months Minas Dixon must commit itself to a drill program after which it may withdraw with no further commitment to Minera La Esperanza.
The Ollachea prospect is hosted by pyritic shales and slates interbedded with quartzites. Small granodiorite, diorite and dacite stocks intrude the sediments at the intersections of major fault structures. Gold mineralization is associated with pyrite and minor chalcopyrite in quartz and is concentrated along structures parallel to the sediments and proximal to the intrusives.
Underground and surface workings have so far identified the mineralized zone over 600 metres east-west and 200 metres north-south; the zone remains open to the east and west. Samples collected by Minera La Esperanza from the full length of the main adit, lying within the mineralized zone, averaged 10.6 g/t Au (uncut) and 6.4 g/t Au (cut to 30 g/t Au) over 16.2 metres. Check samples collected by Minas Dixon yielded 6.2 g/t Au (uncut) and 4.9 g/t Au (cut to 30 g/t Au) over 17.2 metres. A program of surface pitting to bedrock on north-south grid lines across the mineralized zone, to determine its extent and define drill targets, will commence immediately.
On behalf of the Board:
David Henstridge
President |
