Cambridge options 3rd Au mine

The UK's Cambridge Mineral Resources (LSE: CMR) reported it has signed an option agreement to earn an 80% interest in the Mina Santa Rita gold mine in Colombia. Santa Rita processes some 3t/d at an average grade of 15-20g/t gold from one vein, which remains open for exploration. Significant additional mineralization is present in the footwall and hanging wall, where average grades could vary greatly, the company said in a statement. Cambridge will pay US$160,000 over 3.5 years to acquire control of the project. The acquisition will be CMR's third gold mine asset in the South American country's Frontino gold belt, where it aims to buy 2-3 more mines, the statement said. The idea is to build a 1,000-2,000t/d operation in the region through the combined development of a number of small mines. Cambridge already holds stakes in the Quintana and El Cinco mine projects in Frontino. CMR also has 100% of the Marcelita-2 gold mine in Peru.