Australian junior explorer Gold Mountain (ASX:GMN) secured an exclusive 12-month right to acquire the historical Malhada do Angico tungsten mine in northeastern Brazil, gaining foothold in one of South America’s primary tungsten-producing districts.
The company signed a binding Heads of Agreement with Emprogeo Mining Business EPP (EMPG) for the 857.53-hectare Mining Application, which directly borders Gold Mountain’s existing Logradouro tenements in the Seridó Tungsten Province.
Gold Mountain paid an initial US$183,000 for the 12-month exclusivity period, allowing the company to conduct technical, legal, and regulatory due diligence. A second payment is scheduled within 15 days of a favorable decision from the Brazilian National Mining Agency (ANM) regarding a pending exploration report filed in 2016. A final payment is payable following ANM approval to formally assign the mining rights to Gold Mountain.
The Malhada do Angico asset, operated by Mineração Fluminense during World War II, mirrors the geology of the nearby Brejuí Mine which sits roughly 47 kilometers to the north and ranks among Brazil’s largest tungsten operations.
“GMN is excited by this tungsten opportunity, which I recently visited,” Gold Mountain Executive Director David Evans said in a statement. “We are fast tracking the exploration program and will commence drilling as soon as the necessary permits are obtained.”
Ahead of the proposed drilling, the company has initiated drilling on the site’s historical tailings to estimate grade and thickness and secure samples for metallurgical testing.
Gold Mountain has also mapped historical workings across both the newly secured tenement and its adjacent Logradouro property. The company identified a combined strike length of approximately 2,000 meters of skarn within the main mine workings zone, and an additional 2,000 meters of skarn with minor workings in the eastern section of the Malhada do Angico tenement.
Don’t forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.