Portage Resources Inc. reported that the company has signed an agreement to acquire a mining property in South America. The company plans to conduct an exploratory drilling program at the site in the near future.
Portage Resources is purchasing the Wukakuy property from Airon Peru S.A.C. in exchange for 20 million shares of the company’s common stock. The company signed a letter of intent to purchase the properties on June 18, 2011.
The Wukakuy property totals approximately 1,482 acres and is located in the Putina District in the southern portion of Peru. The property comprises two separate mining concessions – Wukakuy and Wukakuy Uno.
Portage Resources said that the company conducted extensive due diligence on the property prior to signing the agreement. The company is targeting various minerals that are present in carbonate and clastic sediment deposits dating from both the Carboniferous and Permian periods.
Portage Resources reported that the Wukakuy property has estimated reserve potential of approximately 58 million ounces of silver. This estimate is based on a review of the geological reports and the resources are located in the Bonanza Cuerpo and Caprichosa Manto zones on the property.
Portage Resources plans to conduct an exploratory drilling program due to favorable geology, geochemical anomalies and the presence of mineralization.
For more information on the company, go to www.portageresourcesinc.com