Wednesday, 24th November 2004 (2556 views)

Cambridge Mineral Resources has revealed new details on the progress of its acquisition of the Patacancha gold project.

The 1,865-hectare property is situated within the gold-rich Ayacucho volcanic belt of southern Peru, which is currently a site for important exploration from major mining firms.

Cambridge has signed an option agreement and has formed a new wholly owned subsidiary Minera Peru Gold, which will be its first operating company in Peru.

Through the new option agreement, Cambridge has the right to acquire a 50 per cent equity position in the project for a payment of $320,000.

Executive Chairman, Michael Thomsen, stated today in London: "The option agreement signed with Compania Minera Argento S.R.L. represents the first step in advancing Cambridge into the ranks of the gold producers in Peru.

"Upon completion of a successful due diligence on the Patacancha claims and acquisition of 50 percent of this asset, I fully expect the Company will become a gold and silver producer next year in Peru with initial production coming from the Marcelita 2 deposit."

High-grade precious metal veins form part of the property, with grades averaging around a half ounce per tonne.

 

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