Vancouver-based miner Soma Gold has acquired Otú Centro properties, a land package located next to its Zara exploration properties in Antioquia, Colombia.
According to the company, the Otú Centro properties have 11 known mineralised quartz vein occurrences.
The property has evidence of historic and small-scale mining in differing amounts.
Significant vein occurrences at the site are at the La Aurora and La Constancia mines, which include more than 1,000m of development work to 130m of depth.
Following the latest acquisition, Soma Gold now owns nearly 60% of a 100km ‘extensively mineralised’ trend that spans from its Nechi project in the North to Aris Mining’s Segovia operations in the South.
Soma Gold CEO Javier Cordova said: “The acquisition of the Otú Centro Property by Soma represents a significant consolidation of the ground within a prolific Colombian gold belt.
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“The Otú Centro Property contains numerous gold occurrences that have seen only limited modern exploration. In contrast, the quantity of gold produced from hard rock and alluvial mining operations along this mining belt indicates the prospective trend for discovering significant new gold deposits.”
Previous operators of the property reported significant results from diamond drills from the vicinity of La Aurora Mine.
The results indicate 20.1 grams per tonne (g/t) of gold over 0.9m, starting at a depth of 98.1m; 19.3 g/t of gold over 0.7m, starting at a depth of 23.1m; 7.1g/t of gold over 0.5m, starting at a depth of 164.9m; and 12.6g/t of gold over 0.4m, starting at a depth of 145.3m.
With a strike length of more than 100km, from Segovia-Remedios in the south to Nechi in the north, high-grade gold mineralisation occurs along the entire strike-length of the Otú fault system.
The mineralisation occurs in brittle-ductile to brittle quartz veins formed during later stages of deformation along the Otú fault.
The quartz veins across the district have orientation patterns suggesting the veins form in conjugate faults associated with late-stage movements on the fault.
There are several mines along this trend such as Cordero, El Limon, La Aurora, Le Ye, Los Mangos and Segovia-Remedios.
Besides such advanced mining, several small-scale underground mines have also been developed throughout the district.
It is estimated that nearly 329,000oz of gold is produced along the strike of the fault from underground operations at Segovia-Remedios and El Bagre and from placer mining of the Nechi River, annually.
Soma Gold has agreed to pay an initial $1m in cash upon the agreement’s closure. A second cash payment of $1.12m will take place next May.
The company will also assume $150,000 in liabilities related to the properties and will also grant a 2% net smelter return (NSR) for metallic minerals.
Of the NSR, one-half or 1% can be repurchased by the company for $1m.