Palamina Corp Adds Additional Property Holdings to its Flagship Gaban Project in Peru
This week Palamina Corp (TSXV: PA – $0.29 CAD & OTC: PLMNF – $0.24 USD) has reported the acquisition of two key parcels of property adjoining to its flagship Gaban Project in Peru. Located within the prolific Puno Orogenic Gold Belt (POGB), a large district within the Andean mountain trend with abundant gold and mineral deposits, Gaban is an early stage gold project that has never been tested with a modern drilling program.
Peru is considered to be a safe, mining-friendly jurisdiction, with policies in place to enable faster permitting for exploration work. While the entire region is considered underexplored, there is now a staking rush underway throughout the POGB as exploration companies have come to realize the high discovery potential across the belt. Palamina controls 6 exploration projects within the POGB and the Company is still in acquisition mode.
Consolidation Underway For the Gaban Project Area
The Gaban property, originally comprised of eleven concessions with a total area of 6,100 hectares, was acquired by staking. These holdings extend from the edge of the town of San Gaban, and are located proximal to the InterOceanic Highway that extends to the Pacific Ocean. The Palamina management team likes what they see at this project and they have been in negotiations with a local landholder to acquire additional exploration parcels.
With the acquisition of these latest parcels, Palamina has now assembled a contiguous property area of 7,100 hectares, covering 85% of the watershed that drains into the Yanamayo River. The Company continues to be in discussion with the local landowner for the remaining parcel as it works to consolidate 100% control of this strategic property.
One appealing aspect to the Gaban project is that the Company has established a significant presence in the district with 100% ownership of the parcels it controls, and the total acquisition costs have been extremely low. The two parcels of land announced this week, for example, were acquired for total payments of $35,000. In most other active exploration districts in the world today the price of entry is much higher and it can be difficult to consolidate ownership of large projects.
As an early player in this attractive district, Palamina has been able to aggressively secure large, highly prospective properties at bargain levels.
An Ideal Setting for Gold Exploration
Several streams run through the project area, flowing down from mountains that surround the property. Small scale artisanal mining activity has focused on alluvial gold in the sediments of these streams. While The Company is not interested in the alluvial gold itself, the fact that at least 10 groups of local miners are active on the property area is a testament to the widespread distribution of gold in this area. Alluvial gold originates from hard rock deposits further up the mountains and is eventually carried down the streams through the process of erosion.
Palamina has committed to carry out modern exploration to find the orogenic source of the alluvial gold deposits. Sampling and fieldwork has identified extensive gold showings within stream sediments, and mineralized intrusives have been encountered on sedimentary rock outcrops. Gaban shares the same geology as the nearby Ollachea Deposit, a gold resource of four million ounces. Management has taken the same exploration model to focus on a discovery at Gaban that was successful in other parts of the district. With an experienced geological team that has more than 27 years of combined exploration work, the Company understands what to look for.
Palamina is led by a team of company-builders that understand what it takes to be successful with exploration work, and have a track record of achieving significant discoveries. The Company is highly focused and is moving forward to execute a strategy to become a significant player in an emerging high profile mineral belt in Peru.
Established to provide shareholders leverage to discovery, Palamina is on track to achieve the first objective with its expanding property holdings in several key areas of the POGB. As a newly listed company it remains tightly held with no debt. The capital structure is attractive with fewer than 25 million shares outstanding on a fully diluted basis.
The fieldwork at Gaban is planned to resume in April 2018, with the objective to generate targets for a drilling program. These may eventually develop into entirely new discovery areas for hard rock gold deposits that are the source of the abundant alluvial showings in the surrounding river and streams. Management believes the potential for a deposit of more than a million ounces exists at Gabon.
This is the appeal of the exploration model as companies advance from early stage potential. For investors, the greatest rise in shareholder value comes at the discovery level. A long history of small-scale local mining activity at Gaban has demonstrated that there must be at least one hard rock gold deposit in the higher elevations as the source of this gold. Palamina is committed to thoroughly explore the Gaban project and if that source deposit exists within the property area the Company is determined to find it. Recommendation BUY
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