Kestrel Gold Inc. (TSXV:KGC) provided written notice to the owners of the Huachi Property in the San Juan Province of Argentina of its intend not to continue exercising its option to acquire an interest in the Huachi Property.
As quoted in the press release:
After conducting widespread exploration of the gold mineralized portion of the Huachi Property, including 4,000 metre diamond drill program, management of the Corporation has concluded that the exploration results obtained to date do not outweigh the economic and political risks in taking the project forward in Argentina.
Kevin V. Nephin, President and CEO of the Corporation stated:
Due to the regulatory environment and the political uncertainty present in Argentina today, risk has increased substantially along with costs of doing business and mineral exploration in Argentina. Difficult market conditions have added to this situation causing investors to search for safe havens rather than countries with added political risk and changing regulations. Management is, therefore, of the opinion that it is in the best interest of the Corporation to concentrate the Corporation’s future exploration efforts in North America. This focus will be mainly on the Corporation’s King Solomon Dome Project in the Yukon, Canada, in the heart of the Klondike Goldfields. The King Solomon Dome group of properties represents a fantastic opportunity to seriously explore for the source host of the 20 plus million ounces of gold obtained to date from the near by placer creeks.