Orestone Mining Corp. has announced the acquisition of an additional two square kilometers of land adjacent to its Francisca property, situated in Salta Province, Northwestern Argentina. This new land acquisition aligns with the company’s previously established option agreement, allowing Orestone to secure up to an 85% interest in the Francisca property over seven years, contingent on cash payments and exploration expenditures totaling US$4.2 million. The recent amendment to the agreement includes this additional area for a payment of US$10,300.
David Hottman, CEO of Orestone, emphasized the historical context of the Francisca property, which encompasses a significant gold system that was discovered amidst a period of low gold prices, resulting in two decades of minimal exploration activity. The company is preparing to implement a comprehensive exploration program that includes detailed mapping and trench re-sampling, followed by drilling efforts aimed at defining an oxide gold deposit suitable for open-pit mining. Further details regarding these exploration plans are expected to be disclosed soon.
Geological assessments have already identified an oxide gold stock-work mineralized trend extending 1,100 meters along a northwest strike on the surface of a moderately elevated hill. This feature is characterized by two zones—the North and South Zones—enclosed within an area exhibiting intense hornfels alteration, suggesting the potential presence of a larger intrusive body beneath. The mineralized trend is associated with quartz feldspar porphyry intrusive dykes and significant sericite alteration along northwest-trending faults.
The newly acquired land enhances coverage of the potential mineralizing system’s eastern extension. Geological mapping and sampling conducted roughly 900 meters from the North-South Zones indicates mineralization over an area of about 400 by 200 meters within partially altered sedimentary rocks. Notably, gold mineralization appears in quartz veins and veinlets with accompanying alteration, demonstrating a promising correlation to a larger intrusive body at depth.
Historical sampling of the South Zone revealed it to be the most significant target, with assay results from 20 rock chip samples confirming high gold grades ranging from 0.03 to 33 grams per tonne (g/t), with an average of 5.78 g/t gold and 29.2 g/t silver. The sampling involved meticulous collection methods, ensuring quality through duplicate analyses and adherence to established QA/QC protocols.
Orestone has devised a two-phase exploration program for the high-grade South Zone, with Phase 1 focused on detailed mapping and sampling, while Phase 2 will commence with a 1,200-meter reverse circulation drill program, featuring eight drill holes aimed at thoroughly investigating the mineralized zone.
In a strategic decision, the company has opted to terminate its option to the Las Burras-Incahuasi copper porphyry property, citing a lack of work undertaken there.
As Orestone positions itself for future exploration and development, its focus remains clear: to delineate an economically viable oxide gold deposit on the Francisca property. Interested parties are encouraged to remain informed of corporate developments through the company’s website and communication channels.
