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Friday, 31 May 2013
Estrella Gold moves forward with exploration, search for new assets
Estrella Gold Corp (CVE:EST) is moving ahead with project exploration and the search for new projects, it told investors late Thursday.
The company has implemented a program of operating cost reductions, specifically admin expenses and property holding costs, and is now looking ahead to focus on moving its projects forward and acquiring new assets.
It currently has four properties under option or joint venture agreements.
The junior gold company gave updates on each of these projects in a statement released late Thursday, after meetings between Estrella's team in Peru and each of the joint venture partners.
At the Yanac project in Peru, where it is partnered with Cliffs Natural Resources Exploration, further exploration work is planned, with updates to be provided in the coming months as work progresses. Cliffs must spend US$500,000 in year one on exploration or pay the same amount to Estrella, with an additional payment of US$250,000 required to maintain its 50 per cent stake.
At the La Estrella project, funded by Mines Management, exploration will continue for a second year, according to the statement, with permits being waited on for drilling. Under the terms of the agreement, Estrella's 25 per cent stake is carried to production with proportionate costs paid back to Mines Management from production profits.
Estrella also has an option agreement with Lara Exploration on the Isy project, which makes up a part of the Sami project owned by Lara. Lara has the option to buy the Isy claims by paying US$175,000 over the next two years to Estrella, and issuing 50,000 shares, after already paying US$80,000.Estrella will also get a 1.5 per cent net smelter returns royalty on the project.
The Pucarana project, which is currently in the process of having a 60-40 joint venture finalized with Esperanza Resources Corp, sits just 15 km from the Poracota mine, which has become one of the largest gold producers in South America.
Estrella also said Thursday that its geological team in Peru is active in looking for new projects as companies drop properties due to a lack of financing amid a challenging time for junior explorers.
Separately, after the general meeting earlier this week, John Wilson was reappointed president and chief executive, while Winnie Wong was reappointed as CFO. Directors were also appointed as expected, the company said.