Gold major Newmont Mining has designated the Astro project for option under the terms of an exploration alliance with Canadian junior Evrim Resources.
The Astro project is situated on the western margin of the Mackenzie platform, a basin which runs parallel to the Yukon and Northwest Territories border.
“The designation of the Astro project has met the alliance’s original goal; generating quality greenfield targets in terranes favourable for large scale gold deposits,” Evrim president and CEO Paddy Nicol said on Wednesday.
“This summer Newmont and Evrim have planned a $1.2-million exploration and drilling programme at Astro. The permitting process is well under way, and we look forward to the engagement of the local community within the Sahtu region.”
Under the terms of the alliance, Newmont may elect to earn an 80% interest in a designated project by making staged cash payments totaling $600 000 to Evrim and solely fund exploration until it has defined a National Instrument 43-101-compliant prefeasibility study on a minimum two-million-ounce gold resource, over a ten-year period.
Evrim will be the operator for the initial $5-million in exploration expenditure.
Evrim may then elect to form a joint venture with Newmont on a respective 20:80 basis, whereby Evrim can maintain its equity interest in the project or elect to have Newmont fund a positive feasibility study and reduce Evrim’s equity interest to 15%. Thereafter, Evrim may elect to contribute its pro-rata share of adopted programmes and budgets or convert to a 2% net smelter return royalty of which 0.5% may be repurchased by Newmont for $10-million.