Argo Gold has signed an agreement to acquire a 100% interest in certain Canada-based mineral claims owned by Rubicon Minerals.
The proposed mineral claims are situated adjacent to Argo Gold’s Woco gold project in Earngey Township, which is located roughly 90km east of Red Lake, Ontario.
Argo Gold will offer 500,000 common shares to Rubicon as part of the arrangement.
Rubicon will also retain the right to receive a 2% net smelter return (NSR) on production from the claims.
The acquisition consists of three mineral claims spread over 384ha and will bring Argo Gold’s total holding to 23 mineral claims, covering 704ha in the Birch-Uchi Greenstone Belt near the Uchi Lake Deformation Zone.
It contains the southerly extension of the ‘Uchi Break’, which is associated with the Uchi Gold Mine, as well as the Woco and Northgate gold prospects.
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The Northgate project was found to contain a strike length of 200ft assaying 0.497oz per tonne Au over a width of 3ft, according to detailed surface sampling of the main quartz vein conducted in 1937.
In addition, the Ontario Geological Survey conducted in 1985 mapped the quartz vein over a strike length of 244m with a width of 0.9m-9.2m.
Roughly 39 holes were drilled over a NW-SE strike length of 700ft at the project, which had an identified resource of 64,400t grading 0.28oz per tonne Au in 1959.
The transaction is subject to receipt of regulatory approval.