The Guadalupe project is a grassroots discovery by Esperanza geologists in the Cordillera Negra (is part of the Cordillera Oriental, one of three mountain ranges in the Andes Mountains) of north-central Peru.
Anomalous rock chip samples returned assays with 5.1 g/t gold, 69 g/t silver, 5.8% lead, and 0.5% copper. Interpretation of the geology suggests that the property is a volcanic massive sulfide (VMS) target, similar to the Cerro Lindo Mine in the department of Ica. Due to the polymetallic nature of this prospect and deposit type, Esperanza has optioned the property to Votorantim Metais, a world leader (5th largest) in the production of zinc.
Votorantim can purchase 100% of the Guadalupe project by spending US$1.8 million investment in exploration over four years, making a cash payment of US$2 million, and Esperanza would retain a 2% royalty (NSR) on any future production.
Initially, Esperanza's land holding covered 3,100 hectares on four concessions, Votorantim has since added ground to the Guadalupe claim block and now totals 5,900 hectares. Votorantim is aggressively exploring the surrounding region and controls over 29,000 hectares of mineral rights in this part of the Cordillera Negra.
Satellite image showing the initial concession boundaries held by Esperanza and locations of rock (▲) and drainage sediment (●) samples. Votorantim Metais is aggressively exploring the area and controls over 29,000 hectares in this region.