Quia Resources (CVE:QIA) said Thursday it has agreed to acquire two concessions totaling 2,158 hectares next to its San Lucas property in Colombia.
The acquisition, which is expected to close after a 60-day due
diligence period, will bring Quia's property holdings in the Guamoco
district of the San Lucas gold belt to a total of 9,138 hectares.
The two new concessions adjoin Quia's current holdings, and fill in
an approximate four by two kilometre gap between the current Rueda South
and Durmiente target areas, and a previously held concession two
kilometres to the south.
The company said that previous soil sampling and geophysics have
suggested some of the target trends continue across the newly acquired
The acquisition also extends the company's holdings approximately
five kilometres to the north of the current area of focus, and contains
additional areas to the north-east and north-west.
"This acquisition has dramatically increased the scale potential of
our already significant targets and adds more highly prospective ground
to our portfolio," said CEO Yannis Banks.
"It also further positions us to be a consolidator by extending
coverage over the heart of this district which we believe has the
potential to become one of Colombia's major gold camps."
Quia said it is planning to complete a soil sampling and geological
mapping program over the newly acquired area to better define the
extensions of the Rueda South and Durmiente targets.
Under the terms of the deal, Quia will pay US$2.0 million over a
period of four years, and bonus payments of US$325,000 within 30 days fo
completing a preliminary economic assessment, as well as US$1.3 million
within 30 days of completing a pre-feasibility study.
In addition, the company will pay US$5 per ounce of gold reserves as
defined in a definitive feasibility study, payable within 60 days of
filing, along with a finder's fee of C$11,268 and 250,000 common shares.
The San Lucas gold belt is among the least explored and most prospective gold belts in Colombia, Quia said.
Earlier this month, the company unveiled further drill results from
its San Lucas project, and provided an update to its 2012 exploration
Highlights from holes 8 through 14 from the company's ongoing phase
one drill program included 12.5 metres of 0.22 grams per tonne (g/t) of
gold in hole SL1109; 4.5 metres of 1.50 g/t gold in hole SL1110; and
15.2 metres of 0.27 g/t gold in hole SL1112.
In addition, hole SL1114A intersected 3.85 metres of 0.52 g/t gold.
The company said the drilling to date has established a disseminated
gold system at the La Colina anomaly that is potentially continuous over
at least 800 metres in strike, representing "significant scale"
potential for this system, and generally in the area.
Quia also said the system appears to be getting wider both at depth
and to the southwest, also appearing to be increasingly higher grade to
the southwest. It remains open in all directions and at depth.
As of early February, about 3,150 metres of drilling had been
completed at the project, and the company is planning to drill another
5,000 metres in the first and second quarter of this year, for a total
of roughly 8,000 metres in the phase one drill program.