The Portuguese Government and Canadian gold mining exploration company, Colt Resources, are signing an agreement, November 2, to launch an experimental gold probe project in the southern Alentejo region of mainland Portugal.

The sites for the project are located at Nossa Senhora da Boa-Fé and Santiago do Escoural (Montemor-o-Novo) near Évora city.

The announcement was made in Parliament last week by Portuguese Minister of Economy and Employment Álvaro Santos Pereira.

He said the initiate was a joint venture involving Colt Resources and Australian based Iberian Resources and that a 3 million- euro investment was projected.

The mining exploration concession, valid for three years, may stay in operation for the next 10 years and will create an estimated 100 jobs, it was reported.

The operation will involve a 770 square kilometers area with historical resource estimates ranging from 150,000 oz to 550,000 oz gold. It could yield more than 280 million-euros ($402.5 million USD) over the next ten years.

According to Colt Resources , “The initial campaign will include some 20,000 meters of drilling, trenching, surface mapping and geophysical test work designed to confirm and increase historical resources identified by previous exploration companies.”

Portugal holds 382.5 tons of gold reserves, worth an estimated US$20.7 billion, one of the largest gold reserves in the European Union and the 13th highest in the world.

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