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QRS to acquire 100% stake in Chilean gold project

21 February 2012

QRS Capital Corp has signed an option agreement to purchase a 100% stake in the Las Leddas project located in Chile's Maricunga district.

Under the terms of the option agreement, QRS must pay $13.46m within 990 days of the first option payment date, subject to a 1.5% net smelter return royalty.

The 5,100 hectare project is an epithermal gold porphyry system spread across 24 individual concessions.

The Maricunga district is characterised by several high-sulphidation type epithermal deposits with higher gold grades and no copper.

QRS CEO, John Seaman, said: "We are very excited to add another high quality project to its portfolio."

He continued: "The company continues to utilise its corporate model of low up-front costs to help minimise risk during the early stages of project development."

He added: "With three advanced exploration stage projects that represent three distinct markets; gold, silver, and copper, QRS is in a position to execute on its business model of developing advanced exploration assets into significant resources throughout Latin America."

QRS president, Diego Benalcazar, said: "We are very fortunate to acquire such great property in an established mining area with a number of world-class deposits around it."

He continued: "The results from the previous exploration drilling are very encouraging and provide an excellent starting point for us to build on."

The company seeks to undertake an exploration programme to define the potential extension or the presence of a separate covered gold porphyry deposits.

Kinross Gold Corporation explored the Las Leddas property from 2008 to 2010.