Elgin Mining subsidiary Lupin Mines Inc has entered into an agreement with North Arrow to acquire a 60% stake in its Contwoyto gold properties, located in the vicinity of the past-producing Lupin goldmine, Nunavut, Canada.
Contwoyto properties consists of six blocks and covers an area of 13,000 acres of mining leases and claims, which has the potential to restart mining operations. It is located close to and adjoining the Lupin mine property.
Under the terms of the option agreement, which is subject to conditions precedent, including obtaining required regulatory approvals, Elgin can earn the stake in the Contwoyto properties by paying $6m over a period of six years.
Elgin recently completed airborne geophysical surveys over portions of the Contwoyto properties and indicated to North Arrow that ground exploration is expected to start shortly.
It is expected that the 2012 exploration programme will include drilling on several target areas.