Shares in Bastion Minerals Limited (ASX: BMO) closed up over 23% on Thursday 26 August after the miner announced that it had secured an option to purchase 100% of Chile’s high-grade San Juan Gold Project for USD$1,500,000.
The deal with Sociedad Minera del Norte would see Bastion take control of licenses covering ~30km² in one of Chile’s oldest gold mining districts, with production recorded as far back as 350 years.
“This acquisition represents a rare opportunity to consolidate and control a historically significant high-grade gold system”
Tenements included in the deal are located in within the Capote Mining District and include coverage over the high-grade San Juan, Resurgemento and La Buena Gold veins systems. Bastion has stated that the licenses demonstrate ‘significant regional exploration potential’, with numerous drill-ready targets.
High-grade vein systems provide gold production potential
The San Juan Vein is thought to be the highest-grade gold-bearing vein system in the district, encompassing over 1.5km of strike, and previously tested to ~350m depth with a total of 1.7 Moz @ 52g/t Au processed.
San Juan has never been explored using modern technological methods, providing significant upside.
The Resurgimento Vein is situated 1.4km east of San Juan, with a vein system extending for over 3km and tested to ~150m depth.
Mineralisation at both vein systems remain open at depth and along strike.
Bastion reports that it expects to fast-track exploration works at the project, with drilling scheduled to commence in September.
Management comments
Bastion Minerals Limited Executive Director Ross Landles said: “This acquisition represents a rare opportunity to consolidate and control a historically significant high-grade gold system covering approximately 30 square kilometers. The potential of this new tenement package cannot be understated and represents execution of Bastion’s corporate strategy to identify, acquire and explore high-grade gold districts that have been locked-up for several decades and missed any modern exploration methods. This is very exciting and pivotal period for Bastion as we fast-track drilling at Capote, our in-country exploration team is on the ground at Capote finalising drill targets with drilling scheduled to commence in September.”
Images: Bastion Minerals Limited
