The two-year option covers the search for gold, silver and base metal prospects in the area surrounding Stranorlar in the east of the county.
However, Connemara — which has a number of zinc, lead and gold licences around the country — will focus on the gold potential.
The Donegal ground was selected by Connemara’s geologists following a rigorous review of gold opportunities in Ireland. Historical records of the Donegal area show certain anomalies consistent with gold, while the geology shares similarities with the major gold discoveries made by Canadian firm, Dalradian Resources and others in Co Tyrone.
Connemara will spend much of the next two years reviewing already available data, before spending around €120,000 on soil sampling and geophysical studies on the area.
“We are actively involved in the gold renaissance in Ireland. Our gold joint venture with Hendricks of Canada has identified high potential targets in the Wicklow/Wexford region. The positive results of exploration by Dalradian Resources, a Toronto company, indicate a multi-million ounce gold deposit in the Tyrone area,” John Teeling, Connemara’s chairman said.