Metallum Resources has declared that it will be postponing exploration works on its Chubut Province, Argentina-based M-18 gold property, till the final conditions of the new mining legislation, which is at present being reviewed by Chubut’s provincial legislature, is decided.
The draft law that has been presented to the judicial body includes a 5% net smelter return (NSR) royalty along with the present 3% NSR. Furthermore, there is a proposition that the Chubut government-owned mining company, Petrominera will receive at least 4% of the total sales along with obtaining a 7% direct carried net pre-tax profit.
According to the company, the present draft law will not allow any economic development of the M-18 property and hence it is wise for the company to stop additional exploration expenses now and save its funds in the treasury of the company.
Metallum is presently exploring base and precious metal opportunities outside Chubut and trusts that with its professional expertise and a treasury with $8.5 million, it will be able to source attractive mineral properties.
Metallum has the choice to obtain a 70% interest in the M-18 property under a Joint Venture and Option Agreement from Silver Standard Resources. Rock outcrop sampling, geological mapping and bedrock channel sampling by Metallum Resources has determined a silver/gold-bearing epithermal vein system with strong alteration over 1.2 km strike length with 0.5 km width.