11:35 AM EDT, 03/26/2024 (MT Newswires) -- Magna Terra Minerals Inc. ( BRIOF ) said Tuesday that Newmont Corp. ( NEM ) subsidiary Oroplata SA has identified a priority target area on the Boleadora project in Argentina as part of a summary report of its 2023 exploration program.

Magna said assays from 2023 drainage sediment and rock-chip samples show that anomalous precious metals and pathfinder elements are associated with silica alteration, host fault zones, sinter structures and subtle hyperspectral responses that are indicative of deeper hydrothermal activity and gold mineralization at Newmont's ( NEM ) Cerro Negro mine.

Magna said Newmont ( NEM ) plans further follow-up exploration activities for 2024.

Boleadora comprises 55,000 hectares and is located 17 kilometers along strike from Newmont's ( NEM ) Cerro Negro mine.

Newmont ( NEM ) has an option to purchase Boleadora by paying US$1 million and granting a 2% net smelter royalty. Oroplata has made the third anniversary option payment of US$150,000 to Magna subsidiary Atala Resources SA under the agreement.

"We are very pleased to see Newmont ( NEM ), using their proprietary exploration techniques and expertise, continue to refine exploration targets on the Boleadora Project with recent work outlining a large 10 by 8 kilometer zone of anomalous precious-metal and pathfinder elements," Magna President and CEO Lew Lawrick said.

"This work supports the potential existence of a low-sulphidation epithermal environment associated with the Margaritas-Boleadoras Corridor along strike from the Cerro Negro mine," Lawrick added.

Magna at last look dropped 14.3% in early Tuesday trading.

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