Exploration and development firm Mariana Resources has agreed to acquire a majority stake in the Soledad copper-gold-silver project in Central Peru.
Canada-based Condor Resources currently owns the rights to the project, which is situated in the Cordillera Negra metallogenic province.
Condor has granted Mariana an option to earn a 70% interest for $4m of exploration work and cash payments of $1.1m, both to be completed by October 2017.
The deal also requires Mariana to complete a 2,000m drill programme by the end of October this year.
The drilling will test selected targets in five main areas of interest that were identified during previous exploration work, as well as Mariana mapping and outcrop channel sampling completed to date.
Targets include the northern high sulphidation epithermal/breccia system, a possible concealed central mineralised intrusive and a surrounding ring of mineralised breccia pipes.
Mariana Resources chief executive officer Glen Parsons said the drilling programme will test multiple areas to prove the project's grade and bulk tonnage of gold, silver and copper prospectivity.
"Logistics are currently coming together in preparation of mobilising for the commencement of drilling in April. The programme will continue for approximately a month and a half, and we can look forward to steady news flow over this period," Parsons said.
Parsons noted that a minimum of three scout holes will be drilled to confirm the potential of a higher mineralised core zone at the prospective Pucayacu target.
"The wide-spaced drilling completed to date indicates that several phases of mineralisation have occurred and relate to a large porphyry complex with multiple diorite and dacite porphyry intrusive events emplaced into volcanic wall rocks, and has enhanced the overall prospectivity of this large system."