Canadian company explores for base metals and gold at two prospects in Armenia

Fremont Gold explores two locations. Vardenis was formerly explored in 2010s by another Canadian company, Dundee Precious Metals, and Urasar was explored decades ago by Soviet geological expeditions, in the 1930s and in 1956-60. Both projects are at a very early stage.

Fremont Gold Ltd began mineral exploration activities for base metals and gold at two  locations in Armenia over two years ago, according to Dennis J. Moore, company’s president and CEO.  Mr. Moore was interviewed by the Economic Journalists’ Club at the annual meeting of the European Bank for reconstruction and Development (EBRD), held in Yerevan last month.

The company’s first prospect is named Vardenis in the geological registry of Armenia, and is located about 30 km to the southwest of the town of the same name, close to the village of Getikvank in Vayots Dzor marz (province). The other project named Urasar, is close to the village of the same name in Lori marz, a few kilometers southwest from the town of Stepanavan.

The Vardenis project was explored in from 2015 to 2017 ago by another Canadian company, Dundee Precious Metals (their main asset, however, was a large Shahumyan gold-polymetallic mine in the south of Armenia). Urasar was explored by various Soviet Geological expeditions in the 1930s and from 1956 to 1960.

Past exploration work at Vardenis carried out by Dundee comprised soil geochemical surveys and surface mapping culminating in seven shallow drill holes.  Fremont drilled another two holes at Vardenis late last year targeting copper mineralization.

Past work at Urasar comprised around 20 adits (short tunnels) and two drill holes dating from around 1960, according to Moore.  Both projects are at a very early stage, and they’re far from having internationally recognized resource estimates (compliant to Australian JORC or Canadian 43-101 technical standards).

“In order to estimate a mineral resource, you need many years of work and usually hundreds of drill holes”, he said.

His company (where he’s also the largest shareholder) has a relatively small market capitalization of $3,5- 4 mln, and is listed on the Toronto Venture exchange (a trading floor for emerging companies alongside Toronto Stock Exchange). In near future, the company will undertake a new capital raise.

“Once we’ve really found something and have financing, we will be able to ramp up the drilling, but for this year we intend to complete the easier surface exploration and hopefully drill approximately 4 or 5 holes at Urasar. At Vardenis, we plan to do some geophysical exploration - induced polarization, to be precise”, said Moore.

With this method of exploration, geologists induce an electric current into the ground which will show both chargeable and resistive zones which can suggest presence of metals. At Vardenis, the company needs to be able to narrow the area of search in order to focus future drilling, because while the mineralized area may be relatively large, they need to locate the center, or core, of the mineralizing system.  Presently geologists are looking for early signs there, collecting soil samples at Urasar, and preparing for Vardenis once the snows melt.

Moore commented further that, “The people and government of Armenia have been supportive of our efforts. Developing resources is a process involving a partnership between the local communities, the government, and the company.  The goal is to discover an economic ore body that will benefit the community, create jobs, and generate wealth for company as well all Armenians”.