The La Valenciana Gold-Silver Project, the second of Hunt Mining's advanced-stage flagship properties, is a 296 square-kilometer mineral reserve and consists of 11 manifestations of discovery (MD's). This project lies 25 km to the west of the main Piedra Labrada base camp on the flagship La Josefina Gold-Silver Project.
Exploration to date consists of trenching, mapping and drilling by Fomicruz S.E., the Santa Cruz Province provincial mining authority, completed from 1994 to 2000. Air Geophysics including gammaspectrometry has taken place from 1996 to 1998. In 2014, CCSA conducted a spring drilling campaign that included 42 holes totaling 3,000 meters of HQ core drilling on four La Valenciana targets: Veta Principal; Stockwork La Valenciana; Veta Rosario and Stockwork La Florentina. Additionally, the La Valenciana Project has had more than 2,500 surface samples collected, ranging from below detection and up to 40 g/t gold and 4,600 g/t silver. More details are contained in the Corporation's September 22, 2014 News Release.
Located within Patagonia's highly prospective Deseado Massif mining district, La Valenciana lies contiguous to the Las Mellizas Project (Goldcorp), Joaquin Project (Coeur d' Alene Mines) and La Josefina Project (Hunt Mining). The nearest town, Gobernador Gregores, is 120km to the south.
- The exploration period is seven years and will end on October 31, 2019, per the extension to the Company's agreement with Fomicruz signed in November 2012;
- Hunt through Cerro Cazador S.A. (CCSA), its 100% owned Argentine subsidiary, will make a total investment of at least USD$5,000,000 in exploration on the La Valenciana project;
- If Hunt elects to take the La Valenciana project into production, it must create a new corporation (the JV corporation), that will be 9% owned by Fomicruz;
- Upon completion of a final feasibility study on the La Valenciana project, Fomicruz will have a one-time-only 30 day option to elect to purchase up to an additional 40% of the JV corporation, which would bring its total ownership to 49%. If Fomicruz elects to exercise this option, consideration for its additional investment will be made according to the following schedule:
- To purchase an additional 10% interest in the JV corporation, Fomicruz must reimburse Hunt for 10% of the exploration investment made by Hunt during the exploration period, bringing Fomicruz total ownership interest in the JV corporation to 19%;
- To purchase the next additional 10% interest in the JV corporation, Fomicruz must reimburse Hunt for 20% of the exploration investment made by Hunt during the exploration period, bringing Fomicruz total ownership interest in the JV corporation to 29%;
- To purchase a final additional 20% interest in the JV corporation, Fomicruz must reimburse Hunt for 25% of the exploration investment made by Hunt during the exploration period, bringing Fomicruz total ownership interest in the JV corporation to 49%.
- Hunt, through its Argentine subsidiary, has the right to buy back any increase in Fomicruz ownership interest in the JV corporation at a purchase price of USD$200,000 per each percentage interest owned by Fomicruz down to its initial ownership interest of 9%;
- Hunt has the right to purchase Fomicruz initial 9% ownership interest of the JV corporation at a price to be negotiated by the parties.
Geology of La Valenciana Project, within the Deseado Massif, is characterized by abundant middle-to late-Jurassic Age volcanic and volcaniclastic rock units.
The units are dominated by rhyolitic to rhyodacitic ignimbrite flows and lava domes together with subordinate agglomerates, volcanic breccias and tuffs with minor basalts, andesites and volcanic agglomerates intercalated upward with mafic tuffs, conglomerates and sediments. Faults active during the period of intense Jurassic extension and volcanism generally trend NNW-SSE and form a series of grabens, and horst blocks.
Since Jurassic time, the rocks have been cut by normal faults of several different orientations, but have undergone only a moderate amount of compression. In general, the Jurassic rocks remain relatively undeformed and remain flat to gently dipping, except locally where close to faults, volcanic domes or similar features. Thin Quaternary Age basalt flows conceal about half of the Jurassic Age rocks on the La Valenciana project.
The type of mineralization and alteration styles present across the project area are classified as sulfidation type epithermal deposits.
Gold and silver occur in fissure vein systems localized in structures, often a meter or more wide and hundreds of meters long. They are comprised of quartz veins, stockworks and breccias, rich in adularia with some calcite, that carry gold, silver, electrum and some sulfides, primarily pyrite with small amounts of base metal sulfides.
Future Development and Exploration
Hunt Mining intends to build a mineable resource with advanced exploration at both La Josefina and La Valenciana. Continued exploration to assist in defining a potential mineral resource hosted on highly prospective epithermal gold and silver vein systems.