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15 November 2010
Hochschild enters into option agreement for the Valeriano property in Chile
Hochschild Mining ("Hochschild"
or "the Company") is pleased to announce that it has entered into
an option agreement with Sociedad Contractual Minera Valleno for the Valeriano property which is located 27 kilometres north of Barrick
Gold Corporation's Pascua Lama project. The Pascua Lama project has
reserves of 17.8 million ounces of gold and 671 million ounces of silver[1].
The Valeriano
project covers
an area of 3,750 hectares in close proximity to the Argentinian
border and hosts both high-sulphidation as well
as porphyry style disseminated gold mineralisation.
The property has been explored by a number of mining companies in the past
including Phelps Dodge (1989 - 1991) and Barrick
(1995 - 1997), both of which completed drill campaigns totalling
12,575 metres. No significant exploration has
been undertaken at the property since 1997. A number of highly mineralised intercepts have been reported from this
drilling including:
·
100 metres
at 1.37 g/t Au in typical shallow high sulphidation
style mineralisation starting at 19 metres depth
·
41 metres
at 0.61 g/t Au, 12 g/t Ag and 0.30% Cu, porphyry type mineralisation
starting at 70 metres depth
Under the terms of the
option agreement, Hochschild has the right to
earn 100% into the project by undertaking exploration work and committing to
make certain payments over a three year period. Upon signing, Hochschild made a payment of $500,000 to Sociedad Contractual Minera Valleno and has committed to spending $1 million during
2011 which includes 2,500 metres of drilling. An
additional $3 million work commitment is required in the subsequent two
years. At the end of 2013, a final payment of $5 million is required to
complete the option agreement.
Exploration work is due
to start immediately with a review of the existing data set and re-interpretation
of geophysical data. Field work to be completed in 2010 will include
sampling and mapping surface exposures and acquisition of deep IP and
resistivity surveys. Hochschild will commence a
drilling programme in early 2011 to test the deep
porphyry-style target as well as the near surface high-sulphidation
system.
Raymond Jannas, VP of Exploration commented:
"We are pleased to
announce the option agreement for the Valeriano
property which is in line with our strategy of identifying early stage projects
in key mineral districts which have significant upside potential and a
clear path to control. Our highly experienced team of geologists will now
prepare for an intensive drilling campaign at the project, which we believe
has the potential to be a 'company maker' type property."
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About Hochschild Mining plc:
Hochschild Mining plc is a leading precious metals
company listed on the London Stock Exchange (HOCM.L / HOC LN) with a
primary focus on the exploration, mining, processing and sale of silver and
gold. Hochschild has over forty years' experience
in the mining of precious metal epithermal vein deposits and currently
operates four underground epithermal vein mines, three located in southern
Peru, one in southern Argentina and one open pit mine in northern Mexico. Hochschild also has numerous long-term prospects throughout the Americas.
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