Aim-listed Metals Exploration has been granted four exploration concessions adjacent to its La India gold project, in Nicaragua.

The new concessions cover a combined area of about 64 400 ha and are valid for 25 years subject to a government 3% gross royalty and yearly surface rights payments scaling from $0.25/ha in year one to $12/ha from year 11 onwards.

This extensive concession package includes historical gold workings within the La Grecia project area, as well as numerous other gold targets, which were previously explored by Newcrest Mining.

Metals Exploration has already identified four priority targets in the area, including La Grecia, San Cristobal, Dos Hermanos and Las Cruces.

La Grecia comprises a low-sulphidation epithermal system with high-grade veins having been mapped at surface, which show boiling zone textures. Historical grab sampling returned grades up to 97.42 g/t gold and  695 g/t silver.

At San Cristobal, multiple veins have been mapped at surface and are associated with alteration assemblages which are characteristic of a low-sulphidation epithermal setting.

With Dos Hermanos, two principal zones of hydrothermal veining with a combined strike length of more than 600 m have been identified. Metals Exploration says rock chip samples of up to 62.6 g/t gold and trench intercepts grading 17.9 g/t gold have been returned from the area.

Previous mapping at Las Cruces identified extensive argillic (clay) alterations and oxides, with discrete patches of vuggy silica and steam-heated alterations.

Additionally, along creeks, strongly altered and sulphide-rich (marcasite and pyrite) lapilli tuffs and andesites have been mapped.

This mapping suggests a lithocap style target above a gold/copper porphyry target.

Metals Exploration CEO Darren Bowden says securing the additional concessions adjacent to La India further consolidates the company’s position within the historical La India mining district, and marks another important step in strengthening the company’s long-term growth in Nicaragua.

“Our ongoing technical work has identified four high priority targets, with encouraging historical results indicating the potential for future gold resources.

“While these new licences provide further exploration prospects for the company, our focus remains on advancing the La India Gold project towards production, with first gold expected by December.”

Bowden concludes that by prioritising near-term development and continuing to build a strong exploration portfolio, Metals Exploration aims to deliver on its immediate objectives while also supporting future resource growth.