RE: IAM Gold JVI imagine this is the same JV that was referred to in the prospectus, I like the new agreement with a 30% carried interest and the potential for a spinoff company. I could be wrong but I suspect Barrick has withdrawn facilitating the new arrangement, at least IAM Gold isn't giving up.
Somuncura Gold Property
The Macizo de Somuncura property (the “Somuncura Property”) is located in Rio Negro Province, Argentina. This is a semiarid region of mild climate in northern Patagonia having acceptable infrastructure, and a landscape of rolling hills mostly below 1,000 meters altitude. Marifil S.A. has approximately 470 square kilometers of mineral rights covering 15 properties, known as Los Menucos group. Most of the Los Menucos group of properties has been farmed out to IAMGOLD Corporation of Canada (“IAMGOLD”) under a single agreement (the “IAMGOLD Agreement”). IAMGOLD has subsequently formed a joint venture with Barrick Gold to explore this district.
Approximately US$1.5 million has been spent exploring the Los Menucos group under IAMGOLD’s direction. IAMGOLD has completed an additional 15,000 surface samples, extensive hand trenching, geologic mapping with over 800 petrographic sample studies, and magnetometer surveys to successfully define specific drilling targets. Drilling now totals approximately 50 holes (about 10,000 meters).
Through its drilling program, IAMGOLD has discovered an extensive swarm of epithermal-style, high grade gold veins within an 8 kilometer by 3 kilometer hydrothermally altered zone. Gold mineralization is controlled by the distribution of breccias and volcanoclastics at rhyolitic dome margins and their intersection with east trending fault zones that show as strongly silicified outcrops.
Additional drilling is aimed at defining the potential for a gold vein mining operation. The large target area is also believed to be prospective for low grade disseminated gold deposits.