TSX-V-listed Centenera Mining has signed a binding letter agreement granting it the right to acquire up to a 100% interest in six precious metals properties in the Deseado Massif in Santa Cruz, giving the firm a meaningful foothold in the mining and exploration district.
The agreement is with an arm’s length party, Tres Cerros Exploraciones, through three separate option agreements, in terms of which the company could acquire the properties by way of staged cash and common share payments, subject to a net smelter returns royalty in favour of Tres Cerros.
“This package of properties was carefully targeted by Tres Cerros, which has patiently acquired the properties through staking over the last two to three years. Tres Cerros is an Argentinean company founded by a group of exploration geologists with extensive experience in the Deseado Massif and who have been involved in several discoveries over the last few years including Cerro Moro, Mina Martha, Joaquin and Virginia deposits,” Centenera president and CEO Keith Henderson said on Wednesday.
He added that Santa Cruz was a leading jurisdiction for discovery of low and intermediate sulphidation epithermal gold and silver deposits, noting that about 19-million ounces of gold and 580-million ounces of silver have been discovered since 1990.
“For precious metals it is possibly the highest-ranked exploration destination in South America and, with a relatively short history of mineral exploration, the discovery potential is expected to be extremely high. The Santa Cruz province is a favourable destination for mineral exploration and mining investment, with multiple precious metals mines in production and senior mining companies, such as AngloGold Ashanti, Pan American Silver, Yamana Gold and Goldcorp continuing to explore in the region.”
Centenera is currently in negotiations with a consultant, recognised as a global expert with specific experience in the Deseado Massif, to review each of the properties on the ground and to rank them in terms of exploration priority.
Initial work is anticipated to focus on detailed mapping, where allowed by exposure, ground geophysics and surface geochemistry, and specific exploration recommendations will drive the subsequent programme.