Aurbel is 10km from O3's Alpha property, which hosts the Bulldog, Pontiac East and Epsilon zones, as well as the Orenada 2&4, Akasaba and Simkar deposits. The company has paid a $250,000 deposit and must contribute $87,500/year towards maintenance costs.
"Identifying this potential mill site for our Alpha property is a major milestone … as we continue with our exploration initiatives in the near-term. The mill option allows us to secure existing infrastructure without additional environmental impact, secures the potential to expand the mill capacity as required, and strengthens our strategy of bringing the Alpha property into production in less than six years," said president and CEO Jose Vizquerra.
O3 is working on a preliminary economic assessment for its Marban project while expanding the mineral resources at Alpha via a 25,000m drill programme and at the East Cadillac property via a 15,000m programme.
Shares in O3 Mining are trading at C$1.90, valuing the company at $89 million.