Greystar options La Plata property

Vancouver-based Greystar Resources (TSX: GSL) has entered into a binding purchase agreement with Colombian company Sociedad Minera La Plata for an option to acquire a 100% interest in the La Plata gold-silver property in northeastern Colombia's California mining district, the former reported in a release. The property is within a mineralized belt which has traditionally been mined by local artisanal miners. Rock samples from mine tunnels on site have returned gold assays of up to 9.66g/t and silver assays of up to 94.3g/t. "The La Plata property is contiguous with existing Greystar holdings on the majority of its borders and greatly enhances our land position in the southern Mascota-Machuca trend," executive VP Frederick Felder said, adding: "We intend to quickly move forward with a drilling program to test surface mineralization at depth." Greystar will make staged payments totaling US$1.9mn, issue 160,000 share purchase warrants and carry out minimum annual work commitments over a four-year period to acquire the interest. In addition, if Greystar develops an economically viable ore body at La Plata, the company will make a one-time payment of US$7.0/oz of gold and US$0.10/oz of silver for extractable reserves up to a maximum of 750,000oz, the statement said. Greystar is currently completing a feasibility study on its nearby Angostura gold-silver deposit. A prefeasibility study announced in March this year foresees average annual production of 511,000oz gold and 2.3Moz silver over a 15-year mine life.