- Dark Horse earns the rights to 25% equity in Argentinian gold project, Las Opeñas, and JV with the vendor is expected to be completed by next month
- DHR may take the project ownership to 51% after meeting obligations for the second-year terms of the exploration agreement
- Red Cloud to assist Dark Horse with the development of Argentinian gold assets through various capital raising transactions
- Drilling program at Presagio, the largest and main vein target at Las Opeñas, is anticipated in the summer of 2020/2021
Australian exploration company Dark Horse Resources Ltd (ASX:DHR) has earned the rights to a 25% equity in the Las Opeñas Gold Project in Argentina. The Company reported that all obligations on its front were completed for the first year in compliance to the exploration agreement (with option) realised on a cash payment of US$23,650 to the vendor of the Las Opeñas Gold Project.
Both the parties (Dark Horse and the vendor) remain committed to establishing a Joint Venture Agreement, which is currently being drafted to further fortify their current understanding and relationship. The JV agreement is anticipated to be completed in the next month.
As per renegotiations to the agreement, Dark Horse may make a cash payment of US$110,000 and issue 30 million DHR shares in parts, with 50% to be paid by 31 December 2020 and remaining half by 30 June 2021, to meet the second year terms of the Agreement. The payment will further enhance Dark Horse’s ownership in the Las Opeñas Gold Project to 51%.
Dark Horse has recently implemented a new strategic business plan to further diversify into world-class gold mining assets in fecund mining jurisdictions across the globe, which resulted in an agreement towards the acquisition of gold and tungsten assets in Europe. The experienced gold explorer is advancing on the acquisition of these assets in Tier 1 mining jurisdictions of Finland and Sweden. To know more on the progress of the acquisition, Click Here.
Existing Argentinian Gold Assets in Mining Friendly Neighbourhoods
Despite the new strategy, Dark Horse remains committed to its existing gold projects in Argentina, the Las Opeñas Gold Project in San Juan and the Cachi Gold Project in Santa Cruz. The two projects are located in close proximity to established world-class gold mining operations in the mining friendly regions holding extensive gold resources.
The Company has engaged the prestigious North American mineral resources focussed financial services firm, Red Cloud Financial Services Inc as a financial advisor to Dark Horse.
Red Cloud will assist the Company towards the development of Argentinian gold projects through fundraisings via equity, joint ventures, debt, and other alternatives. The Company has been proactively discussing gold projects over the recent months and looks forward to progress on the success path in the near to medium term.
Las Opeñas Gold Project, The Argentinian Jewel of Dark Horse
Dark Horse is focused on the mineralised range of epithermal gold veins surrounded by a magmatic breccia system, which may share its origin to a deeper unexplored porphyry mineralisation system.
Presagio, the largest and main vein target at Las Opeñas, comprises of mineralised sections including Presagio West, East, Sur and Centre. Presagio characterises an intricate vein set comprising of various veins and breccias running along a length of 200 to 2,200 metres with a width of up to 200 metres, and further remains open in all directions.
At Las Opeñas Gold Project, surface soil and rock samples indicated shallow gold mineralisation with gold grades up to 54.2 grams per tonne and silver up to 3,112 grams per tonne, during 2019.
An initial test work at the project site was completed in April 2019, confirming high-grade mineralisation zones outcropping from moderate depths to the surface with grades varying up to 4.8 grams per tonne gold and 528 grams per tonne silver.
At Presagio, an extensive drilling program has been designed to test the mineralisation, which would possibly reflect in the addition of JORC code compliant gold mineral resources. The drilling program is anticipated for implementation in the summer of 2020/2021.
DHR was trading at $0.002 a share on 10 July 2020 (AEST 02:51 PM), with a market capitalisation of $5.89 million.
All financial information pertains to Australian Dollar unless stated otherwise.