Questcorp Mining (CSE:QQQ) has now started planning its exploration program at the La Union Project in Mexico having completed the initial steps of the option agreement.
The junior explorer, which has a market capitalisation of C$13.8 million ($15.5 million), has completed the issue of 6.29 million shares – representing about 9.9% of Questcorp’s issued share capital – and paid C$25,000 to vendor Riverside Resources.
Riverside, which will remain operator of the La Union Project during the term of the option agreement, is engaging the various geophysical contractors to immediately begin orientation surveys and a follow-up detailed survey.
This is designed to confirm and enhance the drill targets.
The La Union Project is a carbonate replacement deposit, which is also known as polymetallic replacement deposit, which are significant sources of a range of metals including copper, gold, silver, lead, manganese and zinc.
Mineralisation at the 2,520.2-hectare project occurs as polymetallic veins, replacement zones and shear zones, which Questcorp says hosts “high-grade” metal content.
These zones have previously shown grades of 54 grams per tonne gold, 833g/t silver, 11% zinc, 5.5% lead and 2.2% copper, along with hematite and manganese.
Questcorp says these targets also demonstrate potential for large gold discoveries potentially above an even larger porphyry copper district potential.
Write to Angela East at Mining.com.au
Images: Riverside Resources
