TSX-V and Aim-listed Galantas Gold on January 6 entered into a share purchase agreement to acquire a 100% ownership interest in the Andacollo Oro gold project, in the Coquimbo region of central Chile.

The project is a past-producing, large-scale openpit heap leach gold operation with existing infrastructure, permits and extensive historical technical data.

The acquisition represents a significant strategic step for Galantas and is expected to constitute a fundamental acquisition under the policies of the TSX-V, the company explains.

The project includes a considerable permitted footprint with mining concessions, land title and water rights in place.

Extensive earthworks, mine infrastructure and three leach pads remain on site with excellent access to infrastructure, services and a skilled workforce, Galantas points out.

A historical mineral resource estimate for the project estimates its measured and indicated mineral resources at an aggregate of 2.02-million ounces of gold, consisting of 130-million tonnes at 0.48 g/t gold and estimates its inferred mineral resources at 5.06-million ounces gold, consisting of 358-million tonnes at 0.45 g/t gold.

The historical mineral resource estimate is derived from the National Instrument 43-101 Standards of Disclosure for Mineral Projects technical report with an effective date of August 23, 2021.

This report states that the project operated as a 20 000 t/d openpit heap leach operation, producing a cumulative 1.12-million ounces of gold between 1998 and 2018, with peak yearly production of about 135 000 oz.

Geologically, the project hosts a low-sulphidation epithermal, manto-style gold system.

The deposit has been extensively evaluated by past operators, with 1 600 drill holes completed for a total of about 190 000 m, providing a robust technical database underpinning multiple historical studies and resource estimates, Galantas highlights.

The project is adjacent to the producing Carmen del Andacollo porphyry copper mine operated by Teck Resources.

“This transaction represents a clear step-change in the scale and profile of Galantas. The acquisition of the Andacollo Oro gold project fundamentally repositions the company, adding a large-scale, past-producing gold asset with existing infrastructure, permits, and a deep technical database in one of Chile’s most established mining districts,” Galantas CEO Mario Stifano comments.

“With an adsorption-desorption-recovery plant at 200 000 oz/y nameplate capacity, the project provides Galantas with multiple development pathways and a level of optionality that is rarely available in a single transaction, while the staged consideration structure reflects our commitment to capital discipline and risk management. The project has significant exploration potential for both additional gold and copper mineralisation,” he adds.

Stifano informs that the acquisition complements the company’s ongoing work at the Indiana gold/copper project, where a preliminary economic assessment is under way and drilling is planned for the first quarter of this year.

“Together, these assets mark an evolution of Galantas from a single-asset company into a multi-asset platform, positioning the company for disciplined growth and long-term value creation.”