O2Gold outlines 2,000 metres of prospective targets at Grupo de Bullet, Colombia

O2Gold Inc. [OTGO-TSXV] has reported on its first drill targets on the Colombian properties acquired from Grupo de Bullet earlier this year, as well as further details of its continuing exploration campaign.

Total consideration for the Grupo de Bullet property acquisition was US$9-million payable in cash and securities of the company, US$1-million of which has been paid in cash and US$3-million of which has been satisfied by the issuance of 18,807,206 units of the company, at a deemed price per unit of 20 cents.

Last week, the company began approximately 15,000 linear metres of spontaneous potential testing in the veins and their projections to define the continuity along the strike and dip at the Aurora-Quintanillo target.

Additionally, geophysical exploration of the project’s brownfields is continuing. Results of this campaign are expected in late Q2 to early Q3 2021.

The company has defined the first 2,000 metres of targets for its forthcoming drill campaign. Drilling at the Aurora mine is expected to start in Q2 2021; the first scheduled drilling are being done to evaluate results previously obtained in the production tunnels and which are reported in the company’s technical report dated October 28, 2020. This initial drilling is scheduled to be followed by an additional approximately 8,000 metres of drilling in the project’s brown ields, primarily at Aparecida and Quintanillo, in Q3 2021.

The Aurora mine is within the area covered by Colombian mining title 4638 and is licensed for exploitation (mining) – with all environmental permissions and studies completed – for 10 years. The company, which also has a permit to construct a processing plant within title 4638, has solicited the transformation to a concessionary title, extending the exploitation permissions by 30 years. The company expects this to be granted in Q3 2021.