By Armando Duke
(AXcess News) Houston - Canadian junior mining company, Network Exploration Ltd. (TSX.V: NET; OTC: NETYF), reported striking gold at the Company's 24 sq. km Caldera property in Chile. News released Tuesday indicates 5.8 g/t of gold. Network's shares surged more than 50% on news of the gold discovery.
In mid-May, Network Exploration announced the results of a phase I drilling program at its Caldera project in which the Company's Senior Geologist, Marco Fernandez-Concha was quoted as saying, "The anomalous copper and molybdenum values received in Network's recent drilling campaign demonstrate the presence of a large porphyry system." Fernandez-Concha noted further that "Porphyry-related elements such as gold and silver are sporadic but widespread."
Little did Network Exploration's Geologist expect the kind of results reported on Tuesday from the La Blanca mine. In a press release Fernandez-Concha noted that the highest value for gold was 9.24 g/t, the discovery only amounted to 2 metres of the total with a 12.0 metre sample assaying 5.82 g/t of gold and a further 20.0 metre sample assaying 2.21 g/t.
Hitting such a huge strike is news worthy of any mining company, but for NET it was no gamble. Mining giant, Noranda, had begun exploring the Caldera property, which is located in Northern Chile, in 1993 through 1995 during which it magnetically surveyed 50.5 km and completed 17 trenches but with gold prices down at the time, the project lay dormant for 10 years, until in 2005 Aguas Caya commenced sampling and geological mapping over certain areas within the boundaries of the Noranda work. Network Exploration entered the picture in 2006 when in October, it optioned a 50% interest in the Caldera property's mineral concessions over a four year term. The agreement includes property payments totaling $340,000 and staged work commitments totaling $1,050,000 over the term. Upon completion of the agreement a company will be formed 50% owned by the current owners and 50% by Network Exploration Ltd. NET is near completion of it's terms of fulfillment and yet this year may move to organize an operating corporation to be owned 50% by Network Exploration and 50% by the current owners.
The Caldera project's recent discovery has pushed NET up a notch and certainly ahead of schedule in meeting its Caldera gold and copper mining commitment, but with Chile being the hotbed of gold and copper mining by foreign operators, Network Exploration has a keen advantage in Fernandez-Concha considering his Hispanic background and knowledge of the South American mining belt running through the high-dessert areas of Chile.
Network last completed a financing in early February for $500,000, though in order to move forward under its Caldera terms, further financing will be necessary. But at this stage, it looks like Network Exploration is preparing for its final exploration phase in order to push the deal into a jointly owned gold mining operation.