Gold Mountain (ASX: GMN) paid 1 million reais (about C$284,000) for the exclusive right to acquire mining application 848.365/2011, covering roughly 858 hectares over the Malhada do Angico tungsten mine in northeast Brazil’s Serido Tungsten Province. The agreement with Emprogeo Mining Business gives the company 12 months to conduct due diligence before purchase, with further payments contingent on favorable decisions from Brazil’s National Mining Agency on the underlying application. The mine operated during the Second World War and sits adjacent to Gold Mountain’s Logradouro tenements.
Early exploration is encouraging. Initial rock-chip grab samples taken 300 to 600 meters along strike from the mine returned three samples with tungsten analyses exceeding the upper analytical limit of 10,000 parts per million, equivalent to about 1.26 percent tungsten trioxide. The company has mapped about 4,000 meters of skarn zones, designed a drilling program that is progressing through permitting, and begun auger drilling of historical tailings for grade confirmation and metallurgical tests.
Gold Mountain shares closed 3.6 percent stronger at 5.7 Australian cents in Sydney on Thursday, giving the company a market capitalization of about A$16.7 million. The stock has traded between 4.5 and 18.5 cents over the past year.