(MENAFN - ProactiveInvestors - Australia) Laconia Resources (ASX: LCR) has established itself as a major emerging precious and base metals company, finalising the acquisition of the advanced stage Rasuhuilca gold silver project in Peru.
Rasuhuilca boasts high grade gold and silver with near term development potential and major exploration upside.
Laconia is aiming to bring the project into production within 12 to 18 months' time. Revenue from production will enable the company to undertake exploration for further resources at Rasuhuilca.
Rasuhuilca hosts a JORC Resource of 360,000 tonnes at 1.97 grams per tonne (g/t) gold and 179g/t silver, with a 2.5g/t gold equivalent cut off grade.
The Rasuhuilca zone Resource is classed as Inferred due to the reliance on historical data and the lack of independent QAQC data.
Laconia plans to begin exploration work at Rasuhuilca immediately, with the aim of upgrading both the size and category of the Resoruce.
The company's maiden drilling program at the project will focus on the existing resource. This program is planned to be completed in the December quarter of 2012.
In addition, exploration for larger mineralised systems in the tenement package will begin in July 2012.
Rasahuilca comprises 2,765 hectares of an extensive high sulphidation alteration system, located within the Andean volcanic arc of southern Peru.
The project is situated in the same region as Hochschild Mining's (LON: HOC) major silver and gold operations, which host Reserves and Resources of more than 186 million ounces of silver and 1.1 million ounces of gold.
Access to Rasuhuilca is via sealed highways through Nasca and Puquio, then minor roads. The final stage of approach to the project is via tracks from the nearby village of Chipao.
Laconia plans to improve project access, and a short runway airstrip may also be constructed on the project area.
There is a ready workforce, with prior experience in exploration and mining operations, in the villages of Chipao and Andamarca.
Acquisition agreement
Laconia has acquired the Rasuhuilca Project along with the Motil and Porcuchia gold silver tailings projects, also in Peru, from Perth-based exploration company Gold Mines of Peru.
Consideration for the acquisition includes the issue of 42.055 million Laconia shares along with 14.5 million performance shares.
In addition, Laconia will pay 120,000 over the course of six months to a third party, along with 500,000 cash from production revenue if production revenue is reached within five years.
Under the agreement, Gold Mines of Peru chairman Dr Saliba Sassine will join the board of Laconia following the completion of the acquisition.
Pilbara gold
In addition to completing the Rasahuilca acquisition, Laconia is focused on expanding resources at its Lennons Find base and previous metals project in the Pilbara
In January this year, the company announced that results from its maiden drilling program had led to an increase in the Indicated and Inferred Resource at the project.
Lennons Find now hosts a resource of 1.85 million tonnes at 11.4% zinc equivalent, a 117% increase in total tonnes from the previous resource and a 37% increase in contained Zinc metal equivalent.
Further drilling is planned to look for additional resources at depth at the Hammerhead deposit and target further oxide resources in the project area.
Reverse circulation drilling will be carried out at the mineralised prospects seeking a potential shallow supergene enrichment zone.
