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Valor Secure an Earn-In Agreement with Barrick Gold for Peruvian Project

26 June 2023 10:18
ASX:THB

Valor Resources (ASX: VAL) is now free to focus on putting the drill to its flagship Picha Project in Brazil, having secured an agreement with leading global gold and copper producer Barrick Gold to earn up to 70 per cent of its Charaque Project in Peru.

Partnering Up

The agreement gives Barrick a five-year option to acquire a 70 per cent interest in Charaque for cash payments totalling US$800 thousand and US$3 million of exploration expenditure, with Barrick having guaranteed a minimum exploration expenditure of US$500 thousand in the first two years of the option.

Cash payments will begin with an upfront payment of US$200 thousand dollars following the granting of the option with additional payments of US$100 thousand made on the first, second, third and fourth anniversary dates and a final payment of US$200 thousand dollars being made to complete the 70% earn-in interest.

Barrick also has the option to grow its total holdings in Charaque to 80 per cent by exercising a second option of making a cash payment of US$1 million and delivering a sole-funded pre-feasibility study to Valor to secure an additional 10 per cent interest in the Peruvian project.

Maintaining Focus

Valor originally acquired the Project only 12 months ago and has since been able to considerably grow the Project’s profile, with exploration so far targeting extensive historical workings from the colonial period, Arco and Huallatani, and showing sampling grades up to 929 g/t silver and 1.39 per cent zinc.

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Figure 1: Charaque Project location relative to Valor’s flagship Picha Copper Project in Peru

Valor’s reasoning for entering the deal is that it allows Barrick to bring its considerable regional exploration expertise to bear on the growing project while Valor retains strong free-carry exposure to the Project and is able to place the majority of its focus on putting the drill to its flagship Picha Copper Project located just 30km away.

The Company has recently received its Declaracion de Impacto Ambiental (DIA) approved by the Peruvian Ministry of Energy and Mines for an up to 120-hole drill campaign at Picha which will follow up on a number of significant copper-silver-gold targets across the Project including an 800m long gold in soil anomaly exceeding 10 parts per billion gold.

Looking Ahead

The Company said that Barrick’s interest demonstrates the enormous discovery potential in this emerging district.

“Barrick’s involvement in the ongoing exploration of the Charaque Project will enable Valor to focus our efforts on advancing our flagship Picha Copper Project, where we expect to commence an inaugural drilling program in the September 2023 quarter,” Executive Chairman George Bauk said.

“This part of Peru has become a very active exploration hotspot, with several major deposits including the San Gabriel and Berenguela polymetallic deposits. The 7.6Moz gold equivalent San Gabriel Gold-Copper Project – which lies just 7km south-east of Picha within the same mineralised corridor – is currently under development, with first production targeted for 2025.”

VAL’s Australian Stock Exchange-listed share price is currently selling at 0.04c (9:56 am UTC+ 8 hours).

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