Poor market conditions lead to two more Peruvian gold prospects being abandoned
LIMA (REUTERS) -
Strait Gold Corp (SRD.V), a Canada-based junior metals company, said on Monday it has terminated its options on two Peruvian mining projects in light of recent exploration results and dreary market conditions.
It is the latest sign that miners in Peru, especially small ones, are having trouble bringing their projects into production as financing becomes harder to find and base metals prices drop on the global economic crisis.
The company ended its option agreements to acquire the Pallcamachay and San Jorge properties. It said it will continue work at two other Peru projects, Letra Rumi South and Culebrilla.
"We are sharpening our focus to make the best use of our resources," said Jim Borland, president of Strait Gold.
Letra Rumi South is a copper-silver project located in the Ancash district, some 155 miles (250 km) north of Lima. Culebrilla, a precious metals property, backs up to Letra Rumi South. Both are 100 percent owned by Strait Gold.
In November, New Dimension Resources Ltd (NDR.V), a Vancouver, British Columbia-based company, ended options on two Peruvian mining projects. In the same month, Inca Pacific (IPR.V), a Canada-based junior, postponed work on one of its projects in Peru and said it could miss a crucial deadline to start operations.
"We will be prudent with our funds, reduce overhead costs where possible, advance our current projects at a measured pace and take advantage of opportunities that arise during this period of upheaval in the mining sector," said Borland. (Reporting by Dana Ford; Editing by Marguerita Choy)
