Belararox is all set to launch its exploration efforts in Argentina. Pic via Getty Images.
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Belararox is moving to complete its acquisition of the highly prospective TMT project in Argentina’s prolific San Juan province after fulfilling all conditions under the binding agreement.
This will enable the company to jump straight into intensive exploration of the project, which is known to have base metal mineralisation such as zinc and could host a porphyry copper-gold system at depth.
Historical drilling on the Toro target in the southern part of the project had returned a standout intersection of 266m grading 0.76% zinc, 14.6 parts per million (or grams per tonne) silver, 0.05ppm gold, 0.04% copper and 0.09% lead from a down-hole depth of just 56m.
Historical surface rock chips on the Toro Target returned Zn values up to 13.30%, Au values up to 2.56 ppm, Cu values up to 1.90%, Ag values up to 1,980 ppm.
Additionally, differentiation of the structure and mineralisation observed across the Toro target may be related to a porphyry system at depth.
Belararox (ASX:BRX) will now move to acquire all shares in Fomo Ventures No 1, which owns the TMT project, for 2.5 million shares in the company, 1 million options exercisable at 95c and expiring on 6 June 2024, and 10.5 million performance shares that will be awarded in three tranches when certain milestones are met.
The company will also grant the vendors a 1% net smelter royalty with an option for it to buy back half of the NSR for US$2m and the remaining NSR for a further US$5m.
“The acquisition enables BRX to pursue exploration activities in a highly prospective region in Argentina in partnership with an experienced and highly regarded team led by Jason Ward, a renowned geologist,” managing director Arvind Misra said.
The TMT project in Argentina’s San Juan Province consists of the Toro, Malambo and Tambo targets in an underexplored gap between two renowned metallogenic belts.
Toro was the subject of historical exploration activities completed by Sonoma Resource Development Argentina during 1995 to 1999 and Votorantim Metais Argentina from 2012 to 2014.
Mineralisation observed in the historical drill core during the due diligence process strongly supported the potential of the project to contain a significant system rich in base and precious metals.
While most historical exploration was focused on the North Zone, rock chip sampling of the Central and Southern Zones also supported the delineation of distinct zones of significant mineralisation.
Since securing the rights to acquire the project, Belararox has carried out a desktop review of the project’s historical data, a technical due diligence expedition to validate the historical information, and a field trip which found that the project’s main access track and historical campsite are in good condition.
Additionally, nine Environmental Impact Assessments covering the entire project have been completed by a consultant based in San Juan province and submitted to Argentina’s mines department.
These EIAs include repairing the access track, reinstating the historical campsite, building new access tracks to the northern areas of interest and an initial drilling stage of 12,000m of diamond drilling.
Belararox has also engaged prominent exploration geologist Dr Steve Garwin to process, interpret and report on Sentinel-2 & Aster Geophysical Imagery.
His analysis has highlighted the potential of the TMT project, identifying various areas of interest and showing conspicuous anomalies in certain zones which are compatible with high sulfidation and porphyry type deposits.
This article was developed in collaboration with Belararox, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
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