What is the story about?
What's Happening?
Questcorp Mining is progressing with its drilling program at the La Union Project in Mexico, having completed approximately 25% of the planned 1,200 to 1,500 meters. The drilling targets multiple areas to evaluate the scale of alteration and indications of a mineralized system. This phase aims to test the carbonate-hosted replacement deposit-style of mineralization, with gold associated with mantos, chimneys, and structural zones. Questcorp has entered into a definitive option agreement with Riverside Resources, issuing shares to make Riverside a shareholder. The initial C$1 million exploration program is part of a larger C$5.5 million work commitment contingent on exploration results.
Why It's Important?
The ongoing drilling program at La Union is crucial for Questcorp as it seeks to confirm the presence of valuable mineral deposits. The strategic partnership with Riverside Resources enhances Questcorp's capabilities and financial backing, positioning the company for potential success in mineral exploration. The project could significantly impact the mining industry by contributing to the discovery of new resources, thereby attracting further investment and boosting economic activity in the region. The exploration results will be pivotal in determining the project's viability and future development plans.
What's Next?
Questcorp plans to expand the drilling program based on initial results, which will help refine the geological model and target next-stage discoveries. The company will continue to assess the stratigraphy, lithologies, and structural features to improve exploration strategies. Further investment and collaboration with Riverside Resources are expected to support ongoing exploration efforts. The results from this phase will guide Questcorp's decision-making regarding future exploration and potential development at La Union.
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