Transition Metals has signed an option and joint venture agreement with Aldershot Resources and started exploration work on the Haultain gold discovery in Ontario, Canada.
Under the agreement, Aldershot can earn an initial 51% interest and up to a 75% interest in the Transition’s Gowganda Gold project, which is located 75km south-west of Kirkland Lake.
The project hosts the Haultain Gold discovery, a zone of widespread alteration and gold mineralisation associated with a number of syenitic intrusions and major faulting discovered by Transition in 2010.
Under the agreement, Transition has started exploration work programme that includes 2,000m of diamond drilling to evaluate potential gold targets within the property.
Transition Metals CEO and president Scott McLean said: “We view the Haultain Gold zone as an important discovery and we are looking forward to aggressively advancing this project with Aldershot as partner.”
Aldershot will fund $400,000 for exploration in the first year with cumulative work expenditures amounting to $2m by the third year of this agreement.
In addition, Aldershot will issue 1.5 million common shares to Transition on signing and provide. A further $450,000 of shares will be given to Transition at the two-year mark, subject to exchange approvals.
Under this agreement, Transition will serve as programme operator.
Aldershot can acquire additional 24% interest in the project by committing to completing a feasibility study.
After discovering it in 2010, Transition has completed induced polarisation (IP) geophysics, soil surveying, mapping and ten mechanically stripped and channel sampled trenches in the project.
It has also completed 21 drill holes that total 2,258m.