EDITOR: | December 18th, 2013

IAMGOLD to Invest Up to $36 Million to Earn a 70% Interest in Solvista Property

| December 18, 2013 | No Comments

December 18, 2013 (Source: Marketwired) — Solvista Gold Corporation (“Solvista” or the “Company”) (TSX VENTURE:SVV)(OTCQX:SVVZF) is pleased to announce that it has entered into an agreement (the “Agreement”) with IAMGOLD Corporation (“IAMGOLD”) that sets out the major terms of a 70% earn-in option agreement, subject to regulatory approval.


  • Under the terms of the Agreement, IAMGOLD will have the right to earn up to a 70% interest in the Company’s Caramanta Project (the “Project”), located in Colombia’s Mid- Cauca Belt, by completing the following steps:
    • IAMGOLD can earn an initial 51% interest in the Project by investing a total of US$ 18 million (US$ 2,500,000 is a non-discretionary commitment) in qualifying expenditures, which includes US$ 900,000 of cash payments to Solvista, over a maximum five year period commencing on December 16, 2013, with IAMGOLD as the Project operator.
    • IAMGOLD can earn an additional 19% interest in the Project, for a total 70% interest, by investing a further US$ 18 million in qualifying expenditures over a maximum three year period following the completion of the initial 51% earn-in.
  • Subject to the satisfaction of the aforementioned conditions, and upon completion of IAMGOLD’s 51% or 70% earn-in, as IAMGOLD may elect, Solvista and IAMGOLD will enter into a joint venture to hold and advance the Project.

Commenting on the Agreement, Solvista’s President and CEO, Miller O’Prey, stated “We are extremely pleased that the potential of the Project, developed to-date through our exploration efforts over the last two years, has attracted the interest of a company such as IAMGOLD and we look forward to working with IAMGOLD to continue to advance the Project.”


Once IAMGOLD has completed its earn-in obligations and acquired a 70% interest in the Project, or in the event that IAMGOLD completes a 51% earn-in but elects not to complete a 70% earn-in, the Company and IAMGOLD will form a joint venture for the continued advancement of the Project. In the case that either party elects not to fund its pro-rata commitment, it will be diluted by an industry standard dilution model. In the case that either party dilutes to a 10% interest, that interest will convert to a 2% net smelter return royalty, of which 1% may be purchased for US$ 2 million at any time prior to the commencement of production.

IAMGOLD must spend at least 50% of the non-discretionary commitment during the first year of the Agreement, including further drilling within the area of the Caramanta Porphyry Cluster (see press releases dated May 21, June 11 and July 02, 2013) and regional exploration on new targets recently identified by Solvista such as the El Cacao area.

Drilling Results

The Company is also pleased to report the results of the latest drill program completed at the Project. A total of 761 metres were drilled in 5 drill holes, 4 on the Malabrigo target and 1 on the Casa Verde target.

The drilling at Malabrigo (Drill holes CAD-1328 to CAD-1331) identified near surface porphyry style gold dominant mineralization before entering a late to post mineral porphyry phase that does not outcrop. Drill hole CAD-1331 did terminate in significant mineralization, suggesting that more drilling should be completed to the west in order to fully evaluate the target. Drill hole CAD-1332 tested the Casa Verde target returning 67m at 0.61 g/t gold equivalent (AuEq) with substantially more copper mineralization than seen at Malabrigo. The Casa Verde drill hole is located near the southern edge of a large MMI soil gold and copper anomaly, suggesting that more drilling is warranted to the north.

Table 1 includes all the intervals of significant gold-copper mineralization and Table 2 provides location information for the five drill holes. Drill holes CAD-1328, CAD-1329, CAD-1330 and CAD- 1331 were drilled from the same platform at Malabrigo while drill hole CAD-1332 was drilled from a separate platform at Casa Verde, located approximately 1.3 kilometres to the north of Malabrigo. Significant intervals are defined as being at least 6 metres in length and averaging more than 0.4 g/t AuEq with no “internal dilution” greater than 6 metres at less than 0.4 g/t AuEq.

Table 1
CAD-1328 Significant Intervals
From (m) To (m) Length (m) Au (g/t) Ag (g/t) Cu (%) AuEq (g/t)
0.0 18.3 18.3 0.44 2.6 0.05 0.54
CAD-1329 Significant Intervals
From (m) To (m) Length (m) Au (g/t) Ag (g/t) Cu (%) AuEq (g/t)
3.0 12.4 9.4 0.78 11.2 0.05 0.87
CAD-1330 Significant Intervals
From (m) To (m) Length (m) Au (g/t) Ag (g/t) Cu (%) AuEq (g/t)
0.0 23.9 23.9 0.54 4.0 0.04 0.61
51.0 63.0 12.0 0.38 3.2 0.08 0.53
CAD-1331 Significant Intervals
From (m) To (m) Length (m) Au (g/t) Ag (g/t) Cu (%) AuEq (g/t)
4.0 29.5 25.5 0.44 7.8 0.05 0.53
117.0 123.8 6.8 0.45 4.2 0.05 0.54
CAD-1332 Significant Intervals
From (m) To (m) Length (m) Au (g/t) Ag (g/t) Cu (%) AuEq (g/t)
5.0 72.0 67.0 0.37 2.5 0.13 0.61
Table 1: AuEq (g/t) calculated assuming a long-term gold price of US $1100/oz and a long-term copper price of US $3.00/lb. No adjustments have been made for metallurgical recoveries or net-smelter returns as these remain uncertain at this time. AuEq formula: AuEq g/t = Au g/t + [(Cu% x 22.0462 x 3.00)/(1100/31.1035)] g/t. Ag and Mo values, although shown in Table 1 are not included in the AuEq calculation. Intercepts are reported as downhole lengths and may not represent true thicknesses.
Table 2
Drill Hole East UTM North UTM Elevation Azimuth Inclination Total Length
Number Coordinate Coordinate (m.a.s.l.) (degrees) (degrees) (metres)
CAD-1328 423756 614919 2316 360 -70 161.8
CAD-1329 423756 614915 2316 180 -50 274.9
CAD-1330 423758 614917 2316 90 -50 200.9
CAD-1331 423754 614917 2316 270 -70 123.8
CAD-1332 423937 615458 2046 20 -70 124.6
Table 2: Drill hole location data for the five drill holes completed in the Malabrigo and Casa Verde target areas. Coordinates are in UTM WGS 84, Zone 18N.

Quality Control and Assurance

The Company utilizes an industry-standard Quality Assurance/Quality Control program for the taking and analyzing of samples. Rock, drill core and stream sediment samples are prepared and analyzed at facilities in Antioquia, Colombia and Ontario, Canada run by the ActLabs Group of Companies. Gold values were determined by fire assay with an atomic absorption finish on 30 gram samples; other elements were analyzed with a 4 acid digestion and an ICP finish. Blanks, duplicates and certified reference standards are routinely inserted into the sample stream to monitor laboratory performance and a portion of the samples are periodically check assayed at SGS Laboratories in Medellín, Colombia.

The scientific and technical information contained in this press release has been reviewed by the Company’s President and CEO, Mr. Miller O’Prey, P.Geo., who is a “Qualified Person” as such term is defined under National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”).

About the Project

The Project is located at the centre of the Middle Cauca Belt, one of the most prolific gold districts in Colombia, with production dating back to pre-Colonial times. The Middle Cauca Belt has been the focus of intense exploration over the past five years with a number of new discoveries including La Colosa (Anglogold Ashanti), a porphyry-gold deposit with a JORC-compliant Inferred Resource of 24.15 Moz Au at 0.94 g/t Au. Directly south of the Project is Gran Colombia Gold’s Marmato Project with NI 43-101 compliant Measured and Indicated Resources of 11.8 Moz Au at 0.9 g/t Au and 80 Moz Ag at 6.1 g/t Ag and Inferred Resources of 2.6 Moz Au at 1.02 g/t Au and 9 Moz Ag at 3.7 g/t Ag. To the north of the Project is Sunward Resources’ Titiribí deposit where a NI 43-101 compliant Measured and Indicated Resource of 6.2 Moz AuEq at 0.50 g/t and Inferred Resource of 6.5 Moz AuEq at 0.53 g/t have been announced.

Three of the Project’s multiple targets (El Reten, El Corral and Ajiaco Sur) are located within a regional environmental designation referred to as the district of integrated management (“DMI”). Under the terms of the DMI there is currently a prohibition against open pit mining within the DMI. The Company has submitted a written submission to the regional environmental authority in Corantioquia requesting the immediate removal of the DMI designation. As disclosed in the Company’s press release, dated September 16, 2013, exploration within the DMI has been temporarily halted by Corantioquia until the Company’s application for removal of the DMI designation has been considered. In October 2013 Corantioquia informed the Company that during the period that a decision on the removal of the DMI designation was being considered exploration within the DMI could resume upon the receipt of an acceptable environmental management plan that IAMGOLD and the Company plan to jointly present to Corantioquia in the first quarter of 2014.

About Solvista

Solvista is a gold exploration company with two projects, Caramanta and Guadalupe located in Colombia, South America. These two projects cover approximately 45,000 hectares in the Antioquia province of Colombia, a region rich in historic gold mining tradition and where several new gold discoveries have recently been made. Solvista is well funded and has completed initial drill programs at both its projects, with the discovery of significant mineralization at both. Solvista’s head office is located in Toronto, Canada with its Colombian headquarters located in Medellín. For further details on Solvista, its management team and its projects, please refer to Solvista’s website (www.solvistagold.com).

Neither the TSX-V nor its Regulation Services Provider (as that term is defined in the policies of the TSX-V) accepts responsibility for the adequacy of this release. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.

CAUTIONARY STATEMENT: This news release contains forward-looking information which is not comprised of historical facts. Forward-looking information involves risks, uncertainties and other factors that could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information. Forward looking information in this news release includes, but is not limited to, Solvista’s objectives, goals or future plans, statements regarding the estimation of mineral resources, exploration results, potential mineralization, exploration and mine development plans, timing of the commencement of operations and estimates of market conditions. Factors that could cause actual results to differ materially from such forward-looking information include, but are not limited to, failure to convert estimated mineral resources to reserves, capital and operating costs varying significantly from estimates, the preliminary nature of metallurgical test results, delays in obtaining or failures to obtain required governmental, environmental or other project approvals, including those related to the District of Integrated Management at the Caramanta Project, political risks, uncertainties relating to the availability and costs of financing needed in the future, changes in equity markets, inflation, changes in exchange rates, fluctuations in commodity prices, delays in the development of projects and the other risks involved in the mineral exploration and development industry, and those risks set out in Solvista’s public documents filed on SEDAR. Although Solvista believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. Solvista disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law.


Raj Shah has been a member of the InvestorIntel.com team for the last nearly 9 years. Recruited from Merrill Lynch, he has over 13 years’ ... <Read more about Raj Shah>

Copyright © 2021 InvestorIntel Corp. All rights reserved. More & Disclaimer »

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.