In May 2016 Golden Rim executed an agreement with Herencia Resources plc (Herencia) to acquire all the issued shares in Herencia’s wholly owned subsidiary Paguanta Resources (Chile) SA (PRC). PRC holds 70% of the shares in Compania Minera Paguanta S.A. (CMP) which holds mineral concessions at the Paguanta zinc-silver-lead project in northern Chile.
The Paguanta Project is located in the Tarapacá Region of northern Chile, approximately 195km northeast of Iquique and 30km west of the Chile-Bolivia border. Paguanta is situated approximately 40km northeast of BHP Billiton’s Cerro Colorado Mine, which has a Mineral Resource of 400Mt at 0.62% copper for 5.5Blb of copper and annual copper cathode production of approximately 175Mlb.
Paguanta is an old mining district. High grade silver was discovered and first worked in the area by a team of miners headed by an Englishman in the 1880's. Together they completed 1,800m of underground development into what is now called the Patricia deposit. The principal development is an adit running 400m in length that intersects three high-grade veins.
The Patricia mine at Paguanta was abandoned in the late 19th century and the area was not subjected to further evaluation outside of regional reconnaissance. Herencia acquired an interest in the Project in late 2005 and were the first modern explorers at Paguanta. Drilling programs were carried out in 2006, 2007, 2009 and most recently in 2011.
The Paguanta Project consists of the following mineralised areas: