Orogen Gold signs contract for Armenia gold project

22nd Jan 2013 08:26

Orogen Gold has signed an agreement with Georaid for the Mutsk gold project in southern Armenia, the mineral exploration company announced Tuesday.The company signed a memorandum of understanding with the Armenian registered company for the exclusive right to undertake an exploration programme over the 24km² licence by August 2013.The agreement gives Orogen an option to earn an 80% interest in the property by spending a total of $2.5m by August 2016. Georaid drilled seven shallow reconnaissance diamond holes which revealed extensive alteration and gold mineralisation along a minimum 850m strike extent.Orogen Chief Executive Officer, Ed Slowey, said: "The Mutsk project in Armenia represents a rare opportunity to acquire a project with early indications of significant gold mineralisation within an emerging epithermal gold district which includes Lydian International's major Amulsar deposit. "Preliminary drilling has identified the new Mutsk gold discovery in this district which is open-ended, untested to depth and potentially open-pittable. We look forward to updating shareholders over the coming months on progress of our initial evaluation programme at the site." RD