Exploration and development company Ultra Lithium Inc. has recently signed an agreement with a local vendor to obtain 13 gold mining licenses in Chepes Area, La Rioja Province, Argentina (the “Chepes licenses”).
The Chepes licenses are situated on historical gold mines, which are regarded as advantageous for the investigation of copper and gold. Quartz veins were excavated for gold and copper in this location from 1880 to 1914.
Ultra Lithium Enlarges Diversification Program by Adding 13 Gold Mining Licenses
As part of the agreement, a total of 13 gold mining licenses encompassing 508 hectares were obtained by paying US $2,000 in cash per license. Ultra Lithium will give the vendor 10% of the profit from any future production from the Chepes licenses.
Ultra Lithium agreed to give the vendor 5% of the profit from any upcoming production from its ULTRA I, ULTRA II, and ULTRA III exploration licenses, which are in the locality of the newly obtained Chepes licenses. At the beginning of 2019, the ULTRA exploration licenses were staked.
The Chepes area is recognized for its gold mines and potential quartz veins in shear hosted granodiorite rocks of the early Paleozoic era. Many of the newly obtained mining licenses have historical mining dumps consisting of quartz vein material.
Earlier in 1993, the Japan International Cooperation Agency (JICA) explored this region offering data on 30 different gold mineralization sites and historical mines. JICA performed geological mapping, ground geophysical surveys, surface sampling, and also some drilling in the Chepes Area. Ultra Lithium is in the process of collecting the historical exploration and geological data on the Chepes licenses to plan and create upcoming work programs.
Geologically, these properties are underpinned by granodiorite, tonalite, amphibolites, and migmatites rocks from the Precambrian to Paleozoic era. Gold mineralization is generally associated with epithermal-style shear hosted quartz veins. This gold mineralization is in the form of alteration zones of limonite, hematite, chalcopyrite, pyrite, galena, and goethite with sporadic free gold.
Assembled a Highly Prospective 30,000 Hectare Package of Gold Properties
We are very pleased with the acquisition of the 13 Chepes mining licenses providing the Company with near term targets for further exploration. The Company now has a land package of approximately 30,000 hectares. Our technical team is currently evaluating quantities of historically mined ores on the grounds of the thirteen mines with the objective of establishing a pilot-scale gold processing plant on site. An exploration work plan will also be developed based on the initial evaluation and sampling of historical mine dumps and in situ quartz vein material.
Dr Weiguo Lang, CEO, Ultra Lithium Inc.