Adelaide, June 21, 2006 AEST (ABN Newswire) - Indo Mines Ltd (ASX: IDO) and partner Compass Resources NL (ASX: CMP) have agreed to expedite the purchase of the highly prospective Nangali epithermal gold project in Peru, which they originally negotiated in June 2004 with a Newmont subsidiary.
Indo and Compass will now pay Minera LJB Normandy Peru US$150,000 on execution of the revised agreement terms (previously US$200,000) and will pay a 1.5% NSR production royalty (previously 2%). The revised agreement is expected to be signed by 30 June 2006.
Indo (30%) and Compass (70%) are responsible for their proportionate share of the payment and royalty.
Exploration completed by Newmont includes geological mapping, drainage and rock chip geochemical sampling and dipole-dipole IP traverses. This work has identified a zone of low-sulphidation epithermal quartz-carbonate veins with anomalous gold (up to 98.7 ppm) and silver (up to 814 ppm), which has a discontinuous strike extent of approximately 2 kilometres. No drilling has been undertaken, but drill sites have been identified and prepared by Newmont.
The recent election of Alan Garcia as President of Peru provides a more encouraging signal for continued growth of the Peru mining industry.
The completion of this revised agreement enables exploration planning to commence for a drill programme to test the high grade Nangali gold vein system against an improving political and social background.
Contact
Kevin Skinner
Senior Consultant
FIELD PUBLIC RELATIONS
231 South Road
MILE END SA 5031
Tel: (08) 8234 9555
Fax: (08) 8234 9566
Mob: 0414 822 631
kevin@fieldpr.com.au
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