LONDON (ShareCast) - (Sharecast News) - Orosur Mining announced on Monday that it has completed the first phase of its exploration joint venture at the El Pantano gold project in Argentina, securing a 51% stake after investing $1m over three years.
The AIM-traded firm said it now had the option to acquire full ownership by investing an additional $2m over the next two years, after which the original vendors would retain a 2% net smelter return royalty, with 1% potentially repurchasable for $1m.

El Pantano, an early-stage gold-silver project in Santa Cruz province, covers 560 square kilometres within the Deseado Massif, a region hosting major deposits such as Newmont's Cerro Negro and AngloGold Ashanti's Cerro Vanguardia.

Orosur said its geological teams had conducted extensive mapping, magnetics, and geochemical surveys, identifying a 25 kilometre-long rift structure with silicification and quartz veining, indicative of a large epithermal system.

The company said it was now preparing to start induced polarisation surveys to refine drill targets as it progressed toward further exploration and potential full ownership of the project.

"We are delighted to have reached this key stage in the exploration agreement," said chief executive officer Brad George.

"In particular we see the work to date as tremendous testament to the value of back to basics, grass roots exploration - taking an unwanted, untouched region, doing the work, and transforming it into a huge and extraordinarily exciting prospect in a world class province at a time of record gold prices.

"Together with our partners we are starting to prepare for phase two of the project, and we look forward to accelerated exploration activities."

At 1156 GMT, shares in Orosur Mining were down 2.97% at 13.78p.

Reporting by Josh White for Sharecast.com.

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