Mineral exploration junior, Horizonte Minerals (AIM: HZM) received encouraging news from its Tangara joint venture (‘JV’) with Troy Resources (TSX & ASX: TRY).
The Tangara JV covers the Tangara Project, a gold project located in the Carajas Mineral Province in Brazil. Horizonte first entered into the JV with Troy Resources in December 2007. The agreement allows Troy Resources to acquire 100% of the project from Horizonte Minerals by meeting a number of milestones, including a US$800,000 staged cash payment, a royalty of US$30 per ounce on the first 500,000 ounces produced, a 2% Net Smelter Return on production in excess of 1 million ounces of gold and finally a payment of US$2 million if Troy Resources exercises its option to advance the project to production. Troy Resources is also committed to a US$2 million exploration budget.
Today Horizonte reported multiple successes from Troy Resources continued exploration spend at Tangara. Highlights were aplenty, including rock grab samples up to 36.7 grams per tonne gold and channel samples of 3 metres at 12.3 grams per tonne gold. Overall, Troy Resources has indentified multiple new gold anomalies through a project wide exploration programme, and is in line with previous expectations that the Tangara project could host multiple small gold deposits which could be utilized to feed Troy’s nearby Andorinhas gold plant.
“This latest update from our JV partners demonstrates the potential of the Tangara Project with multiple new gold anomalies defined,” Horizonte CEO Jeremy Martin said. “Troy is completing a high quality systematic exploration programme across the project area and we look forward to the drill results from the West Rio Maria target areas in the coming months. We still consider any ounces defined on the project to be suitable mill feed for Troy's nearby Andorinhas gold plant.”
Shares in Horizonte Minerals climbed 11% by 8:45am on the news.
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