The Boleadora Group
Large greenfield gold and silver exploration land package close to producing mine.
Overview and Location
The Boleadora Group of properties is a large greenfield gold and silver exploration land package lying approximately 17 km southeast of Newmont’s Cerro Negro mine area in Santa Cruz Province, Argentina.
The Boleadora Group comprises 12 exploration properties (55,000 hectares). The land package sits within the vicinity of multiple important mines and exploration projects, including Cerro Negro, San Jose, Virginia, and Bajo Pobre.
The properties, which were acquired from Minera Kingsgate Argentina in 2016, have several years have had very little prospecting work for several years, with Kingsgate geologists taking only 160 samples.
Geology
The Company’s initial analysis of the area is based upon examination of Kingsgate sampling and mapping, public data from SEGEMAR, and analysis of Thematic Mapper images; the latter being processed for lithological and structural interpretation as well as identification of zones of alteration.
The SEGEMAR geology Map “Destacamento La Maria” indicates that the properties are dominated by the Chon Aike formation, however, Kingsgate geologists mapped the overlying Matilde Formation in several of the properties at the district scale.
The structural regime is dominated by north-northwest striking regional normal and strike slip structures with northwest and west-northwest dilatational structures that are known to be favourable for mineralization in the Massif. Some of these structures appear, in satellite images, to form flower structures associated with intrusives and alteration. The Thematic Mapper analysis defines 75 alteration pixel cluster anomalies, which we have combined to form maps of high probability for, reducing the number of hectares to visit from 50,000 to approximately 10,000.
The Company expects that including Boleadora into Newmont’s regional Cerro Negro exploration program, along with the application of their proven exploration technologies, will add significant value to the project, and ensure that it is advanced in the near-term.
Photo courtesy of Kingsgate technical report
Operator and Partner
The Project operator and partner is Oroplata, a subsidiary of Newmont Corporation. In 2020, Magna Terra Minerals, through its Argentine subsidiary, entered into an agreement to sell its wholly-owned Boleadora Project in Santa Cruz Province, Argentina, to Oroplata.
Under the terms of the agreement, Newmont (Oroplata) will pay Magna Terra (Atala) US$1 million as follows: $25,000 on signing and six instalments totalling $975,000 payable within six years from the date of the agreement. In addition, Newmont (Oroplata) has granted a 2% NSR to Magna Terra (Atala) on the Boleadora package. The royalty can be reduced to 1% by payment of US$2.5M by Oroplata to Atala at any time, and the gross royalty payable is capped at US$20M.