Fortunate Sun Mining Company declared that drill permits have been secured to commence the scheduled 1700 m diamond drill campaign at its Golconda property located in Sonora Mexico. On January 27, 2011, a wholly owned subsidiary of Fortunate Sun Mining Company, Fortunate Sun S.A de C.V had signed a deal with a private Mexican company, Minera Coplau S.A. de C.V. to study the Golconda property.
As per the agreement, Fortunate Sun is required to disburse at least $250K U.S. in the initial year of the contract and a total of $2.5 million U.S. for a period of four years to receive a 100% interest in the Golconda project. The Golconda property lies in Sonora Mexico’s southwest corner and provides access to infrastructure and manpower needed to conclude the program.
According to the conditions drafted by the TSX Venture Exchange, to qualify for initial public offering, a company should perform at least $400K U.S. worth of activity on the project in the initial year, subsequent to the agreed date of the contract. The project, which is likely to take 45 days for completion, will commence shortly. The Golconda program will be supervised by Kristian Whitehead, the VP Exploration at Fortunate Sun.
Fortunate Sun’s President, Reg Advocaat commented that the company is looking forward to begin the drilling program at the Golconda project, which happens to be the main project of the company.