ASX-listed Valor Resources has signed an earn-in agreement with global copper and gold producer Barrick Gold Corporation at its Charaque project in Peru.
Under the deal, Barrick has a five-year option to acquire 70 per cent of the operation for a cash payment of US$800,000 (AU$1.2 million) and exploration expenditure of US$3 million (AU$4.5 million), including a guaranteed spend of US$500,000 (AU$745,000) in the initial two years.
Once Barrick has cleared the hurdles and acquired its 70 per cent, it then has an option to pick up a further 10 per cent by stumping up for a prefeasibility study (PFS) and making a US$1 million (AU$1.5 million) payment.
Management says the agreement allows Valour to focus on the upcoming drill campaign at its flagship Picha copper project.
Valor Resources executive chairman George Bauk said: “Barrick already holds land in the area, including tenements immediately adjacent to Charaque, and we look forward to them bringing their significant expertise to lead the exploration program while Valor retains strong, free-carried exposure to any discoveries. This part of Peru has become a very active exploration hotspot, with several major deposits including the San Gabriel and Berenguela polymetallic deposits. The 7.6-million-ounce gold equivalent San Gabriel gold copper project – which lies just 7km south-east of Picha within the same mineralised corridor – is currently under development, with first production targeted for 2025.”
The Charaque operation is 30km north-east of Valor’s Picha project and comprises eight claims covering about 60 square kilometres.
Valor picked up the project a year ago in an area of active exploration by some of the industry’s heavy hitters including Barrick, the New York stock exchange-listed Teck Resources and Mexican miner Fresnillo.
Rock-chip and channel sampling undertaken by Valor after its acquisition revealed two main targets, Arco and Huallanti, which have extensive historical workings dating back to the colonial period.
Back in June, results from Valor’s work at the Arco target got pulses racing when 2m by 0.2m channel samples showed rich silver hits of up to 929 grams per tonne in addition to some copper, with five returning silver assays of greater than 60g/t.
Valor has carved out its reputation in uranium with its flagship Canadian interest, the Hook Lake project, which sits 60km east of Cameco’s Key Lake uranium mine in the northern part of the Canadian province, Saskatchewan. The project covers 258sq km and its 16 contiguous mineral claims host several areas prospective for uranium mineralisation.
Valor also has a 100 per cent equity interest in the Cluff Lake uranium project, which contains 19 contiguous mineral claims covering 575sq km.
Finally, the company’s Canadian uranium interests are wrapped up with six additional projects within the Athabasca Basin, with 100 per cent equity interest in 17 mineral claims covering 163sq km at the Hidden Bay, Surprise Creek, Pendleton Lake, MacPherson Lake, Smitty and Lorado projects.
Valor’s portfolio has also expanded to rare earths after it staked three new mineral claims covering 6.41q km in Canada’s world-class Athabasca Basin, two of which cover the historical Beatty River heavy rare earths project.
Management says previous explorers tabled assays of up to 8.75 per cent total rare earths oxide (TREO), with up to 1.15 per cent dysprosium. Notably, the company says elements making up heavy rare earths consistently combine for more than 90 per cent of the TREO.
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By Steve Kaless
