Join our daily newsletter At The Bell to receive exclusive market insights
- EMU NL has extended its period of options in Chile’s Maricunga belt for a starting price of US$100,000, due to increase per year, for three years
- The company will be operating across 12 per cent of the belt’s land space, which is six concessions over 1,580 hectares
- The company has great interest in the land due to previous results this year showing 2.8 grams per tonne of gold and silver at 19 grams per tonne on site
- Three segmented extensions until 2022 will each mandate a further US$100,000 for EMU to continue operations in the belt
Junior explorer EMU NL has gained 19.1 per cent today after securing a three year extension on prospect options in Chile.
The company’s options are related to six concessions over 1,580 hectares at the Maricunga Belt of northern Chile, which includes its Elevado Project.
EMU management has paid US$100,000 to secure option for extensions until 2022, including payments of three further segments. Each extension is exercisable by payment of an additional US$100,000.
The deal for EMU has granted the company breathing room in following up significant gold and silver intercepts from drilling at the Vidalita prospect.
These intercepts earlier in March showed gold at 2.8 grams per tonne and silver at a whopping 19 grams per tonne.
EMU Chairman Peter Thomas says the extension deal for the company is important in a competitive exploration market.
“The extension gives us flexibility to control this small but presently important portion of our extensive exploration ground at the Elevado Project for a fraction of the cost that would otherwise have been involved in exercising the option later this year,” said Peter.
Next up in the company’s plans: exploring remaining concessions surrounding the Vidalita prospect including prospects Alunita, NorthEast and Northern Plains.
EMU has also identified drill targets at prospect Jotahues, along with further unspecified opportunities in the vicinity.
Depending on company finances and weather in Chile, EMU is hoping to drill at the Maricunga Belt later this year.
EMU’s holding of the Maricunga belt is only 12 per cent of a total 136 square kilometres.
Shares in EMU are valued at five cents today in a $6.639 million market cap.
