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During the downturn in the resources market from 1997 through to 2002,
junior exploration companies disposed of projects and major companies
slashed exploration spending, retrenching staff and disposing of assets
and projects. This resulted in a number of high quality exploration
targets and advanced projects becoming available throughout South America.
Renewed
market interest in the Resource sector driven by the rise of the gold
price, has resulted in a scramble by mid tier and larger companies to
acquire high quality exploration projects.
During
this down period, personnel from Calipuy, who were based in Peru,
reviewed in excess of 100 projects and developed a considerable database.
They also developed a target generation program and identified a number
of high quality projects. To date Calipuy has acquired one advanced high
sulphidation system, Pico Machay, and has begun negotiations on several
other projects.
Pico
Machay is a high sulphidation gold system similar to Pierina and
Yanacocha hosted by Miocene volcanics in the Peruvian cordillera. Due to
the potential large size and low production costs, such high sulphidation
systems are one of the most sought after gold targets in the world.
Through
the acquisition of Calipuy, Absolut Resources now controls Calipuy’s extensive database. Dan Noone has taken the
position of VP Exploration for Absolut Resources and is based in Lima Peru.
Dan has lived and worked in Peru since 1997 and has
developed extensive experience and networks. From 1998 until 2001 Dan
managed exploration in Peru
for Homestake Mining. He was involved in the discovery of the Sinchao
polymetallic skarn system for El Misti Gold in 1997 and also identified a
number of high quality exploration plays including the Antaña gold
project, acquired and drilled by NDT Resources in 2001.
Absolut
intends to use their considerable in country advantage to advance its
project generation program and acquire further quality exploration
projects in Peru.
Recent
discoveries by Barrick at Alto Chicama and Southwestern Resources at
Liam, are testament to the exploration potential that still exists for
high sulphidation gold deposits in Peru.
Success
by junior explorers in Peru
still attracts the attention of the major companies. After their success
at Liam, Newmont Mining invested US $6.5 million in a private placement
in Southwestern and formed a joint venture with Southwestern to explore
for further projects.
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