Viking Minerals acquires majority stake in Peru gold property

10 September 2012 (Last Updated September 10th, 2012 18:30)

North American mining company Viking Minerals has acquired 60% ownership of gold prospects, encompassing 1800ha, in the district of Miraflores, a province and department of Lima, Peru.

North American mining company Viking Minerals has acquired 60% ownership of gold prospects, encompassing 1800ha, in the district of Miraflores, a province and department of Lima, Peru.

As per the agreement, the company will provide $500,000 to develop a base camp and an alluvial production plant at the Reca I, Reca II, and Rio Rojo properties.

The properties are under the ownership of Corporación Minera Mario, a Ricardo Palma-based company in Peru.

Mining concession rights, which are situated in the Inambari River Basin, have been known to contain commercial quantities of gold for several years.

Significant mining activity is carried out in the surrounding areas, including the Rio Huaypetue gold mine.

Viking Minerals president Charles Irizarry said that the agreement was in line with the company's long term strategy to position Viking Minerals as a fully gold producing company.

"The company has undertaken extensive due diligence on the property. We have been advised by our geological team and joint venture partners, Corizona Mining Partners LLC of Peru, that this property can produce gold immediately upon the establishment of the proper infrastructure and an alluvial processing plant on the property," Irizarry added.

"We want to move out of exploration and into production as soon as possible. This property is in an area adjacent to other properties that have produced gold for hundreds of years.

"It is also adjacent to a property that has a National Instrument 43-101 technical report showing 36,432oz of proven reserves with 235,900oz of probable reserves," he said.

Viking Minerals plans to undertake all the required government and environmental approvals within two weeks.