The company can earn up to an 80% interest in this project by spending $3m over a four-year period on the exploration and development of concessions covering 18,840 acres surrounding the holdings of First Solar and other mining groups in three directions.
California Gold’s property holdings adjoin First Solar’s La Bambolla tellurium-gold mine.
The company said it is currently conducting mapping, trenching and sampling programs at the AuroTelurio project through its Mexican subsidiary, CalGold de Mexico.
These activities will be followed by planned gravity and magnetic geophysical surveys in preparation for an initial 3,000m drilling program that is planned for implementation by this fall.
Historical data suggest that tellurium-gold mineralization at the adjoining La Bambolla mine occurs along a regional structural system with an average S 70 degrees E trend where a swarm of relatively narrow, sub-parallel, silica-rich mineralized veins are present.
At La Bambolla, these veins are either vertical, or have steep dips, and range from 0.14 to 2.60 meters in width.
Based on analytical results of more than 500 underground channel samples taken at La Bambolla in the 1980s, the grades in the mine range from 0.01 to 3.26 % Tellurium and 0.03 to 4.90 oz/ton Gold, respectively.
Geologic mapping and sampling has thus far confirmed that the regional structure hosting the tellurium-gold vein system at La Bambolla extends easterly onto California Gold’s property holdings.
