Trinity Silver (TSX-V:TOM) subsidiary Metales de Chile has entered an option agreement to acquire the El Nevado Gold and Silver Project in Chile’s Maricunga gold belt.
The definitive agreement dated October 6 provides an option to acquire 100% of the project in Chile’s Atacama region for total payments of US$7 million ($10 million) over five years.
El Nevado consolidates ground previously held by Teck Resources (TSX:TECK) and other operators. This provides Trinity a foothold in the prolific Maricunga gold belt approximately 30km southeast of Kinross Gold’s (TSX:K) Maricunga gold mine.
Historical drilling returned encouraging shallow intersections, including 48m @ 2.84 grams per tonne gold (Au) and 19.2g/t silver (Ag) from 16m in hole 5300-8, with ‘higher-grade’ zones of 24m @ 5.04g/t Au and 28.3g/t Ag from 20m.
Silver-rich intervals include 6m @ 211g/t Ag from 215m in hole 5700-1, including 1m @ 1,049g/t Ag from 216m.
The project encompasses 84 completed historical holes totalling approximately 12,910m of drilling, supported by 1,909 surface samples and geophysical surveys across seven mining manifestations covering 1,800 hectares.
Historical interpretation identified alteration and mineralisation extending over 1.4km along strike, with induced polarisation modelling outlining a 1km north-plunging anomaly 150m to 300m below surface.
“El Nevado represents an exciting opportunity to expand Trinity’s Chilean portfolio with a project that has already delivered meaningful historical gold and silver intersections,” CEO Thomas Wood says.
The option requires US$100,000 on signing, US$200,000 on each of the first and second anniversaries, US$500,000 on the third anniversary, US$1 million on the fourth anniversary and US$5 million on the fifth anniversary.
The optionors receive an additional US$3 million upon commercial production and a 3.1% net smelter return royalty.
The company notes all historical results require verification, and no mineral resource has been established.
Trinity Silver, formerly Trinity One Metals, is a Canadian precious and base metals explorer with a portfolio of gold, silver, and copper projects across multiple jurisdictions.
Write to JC Villarba at Mining.com.au
Images: Trinity Silver
