LONDON (Alliance News) - W Resources PLC on Wednesday said it has struck a deal to increase the size of its exploration licence in Portugal to include the "highly prospective" Sao Martinho gold project, a move which the company hopes will attract a joint venture partner.
The miner said the CAA/Portalegre licence area has been increased by 101.7 kilometres squared by the Portuguese Department of Energy and Geology. The entire licence area now covers an area of 289.8 kilometres squared.
The Sao Martinho project was discovered in 1986 and has an unclassified resource estimate of 328,621 ounces of gold at an average grade of 1.37 grammes of gold per tonne, based on limited and historical drilling and trenching that was done.
W Resources said it has acquired the Sao Martinho project at a "minimal cost" and is currently planning to begin exploration on the expanded area, it said.
"We are very encouraged about the potential of this enlarged project with the two significant gold prospects. It is our intention to advance the project with a joint venture partner who will provide technical and financial input. The significant expansion of the licence area with previously defined gold mineralisation provides an even more attractive and compelling project for potential farm-in partners," said Chairman Michael Masterman.
W Resources shares were up 1.9% to 0.632 pence per share on Wednesday.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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