IAMGOLD subsidiary signs deal to earn interest in CGM’s two Ontario projects
Canadian Gold Miner (CGM) has signed two option and joint venture agreements that will allow IAMGOLD Corporation subsidiary Trelawney Mining and Exploration to earn up to 80% interest in the Jumping Moose and Elephant Head projects close to the Côté Gold deposit near Gogama, Ontario.
Under the agreements, Trelawney can acquire 80% interest in these two properties by incurring work expenditures as well as making cash payments to CGM.
Canadian Gold Miner CEO Greg Collins said: “Both the Jumping Moose and Elephant Head properties have the potential to host gold deposits with exceptional grade.
“The Jumping Moose project hosts a cluster of angular boulders that have returned assays from grab samples containing up to 374g/t of gold.
“At Elephant Head, a 1km-long mineralised trend has been identified with grab samples returning up to 57.3g/t of gold.
“We look forward to working with our new partner to advance these projects while the focus for Canadian Gold miner will be the advancement of our Lincoln-Nipissing and high grade Midlothian gold projects.”
Jumping Moose project area is located in Burrows and Kemp townships, around 50km north-east of IAMGOLD’s Côté Gold deposit near Gogama.
In the 1950s, a cluster of high-grade gold-silver-tellurium bearing quartz vein boulders were identified on the east side of Jumping Moose Lake.
Samples collected by CGM had yielded assay values up to 374g/t Au and 648g/t Ag.
Under the agreement, Trelawney can earn an initial 51% interest by funding $850,000 and paying CGM $80,000 in cash over three years. The company holds the option to increase its stake to 80% by providing additional $2m in expenditures along with $250,000 in cash payments to CGM over two years.
The Elephant Head property is in Connaught Township, 40km from Côté Gold deposit. In 2012 and 2014, prospecting and sampling were conducted at the property in the silicified shear zone with yields of up to 57.3g/t Au.
Under the agreement, Trelawney can secure 51% interest in this property by incurring $850,000 in expenditure and paying CGM $80,000 in cash over three years.
Trelawney can increase its ownership of Elephant Head property to 80% interest by incurring further $2m in expenditures and making an additional payment of $250,000 to CGM over two years after the initial 51% earn-in.
Upon earning a 51% or 80% interest, the option will convert to a joint venture.
Image: Locations of Jumping Moose and Elephant Head properties. Photo: courtesy of Canadian Gold Miner.