viewAguila American Gold Ltd

Aguila American Gold reaches community agreement for Peru project


Aguila American Gold (CVE:AGL) has reached a deal with the Peruvian community of Mollepina as it seeks to advance its Angostura gold project, the company said Monday.

The acreage located in Southern Peru covers about 5,198 hectares and consists of nine exploration concessions and two claims which cover the main portion of the Angostura gold prospect.

The community agreement grants Aguila the right to conduct exploration activities like soil studies, diamond drilling and geophysics, as well as providing complete access to the land, utilizing specialized man portable equipment to reduce surface impact while permitting construction of basic infrastructure, camps and offices as required.

Aguila said the initial term for the agreement is two years, under which the company has agreed to maximize local employment and help to enhance the community’s basic infrastructure.

The deal represents the final requirements to submit Aguila's 8,255 metre drill plan, with the receipt of a drill permit expected in early May.

The drill plan is broken up into two planned phases. The first phase aims to drill 3,015 metres to delineate a near surface resource, while phase two aims to advance the potential resource down dip and along strike, Aguila said.

Meanwhile, the company also noted it has agreed to assist in the formalization process of Mollepina’s artisan miners located on the Delicia concession, where it has granted 10-hectares for their exclusive use and operations.

Indeed, Aguila will help artisan miners in all legal proceedings and proper training, but artisan miners will be responsible for the development of their assigned area. The company won’t be held liable, as a result, from artisan miners’ activities.

Aguila said that the artisan miner agreement grants it a one percent royalty of total sales and the right to purchase artisan miners’ production at market value.

The company, which is publically traded on Canada's junior stock exchange, explores and develops mineral properties mainly in Peru.

Quick facts: Aguila American Gold Ltd

Price: 0.165 CAD

Market: TSX-V
Market Cap: $534.43 k

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