JOHANNESBURG (miningweekly.com) – South Africa-headquartered Gold Fields has initiated an exploration campaign at TSX-listed Yorbeau Resources’ Rouyn property, in Quebec, Canada, as part of an option and joint venture (JV) agreement.
Gold Fields, which is carrying out the two-phase drilling programme through an indirect subsidiary, has an option to earn a 51% interest in the Rouyn property and will be the operator of the resulting JV should it exercise its option.
Phase 1 comprises 11 km of drilling on the Cinderella, Augmitto, Lac Gamble and Astoria blocks, with a focus on expanding the known mineralised zones at depth along structural trends identified from Yorbeau's extensive drilling carried out over the last few years, while Phase 2 includes 8 km of exploration drilling on the eastern portion of the property.
The exploration campaign will also comprise geophysical surveys and geochemical soil sampling.
Gold Fields is managing fieldwork during the option period.
Yorbeau said Gold Fields was required to fund $19-million in exploration and development expenditures to exercise its option.
Gold Fields would also have to participate in three private placements for securities of Yorbeau, ranging between $3-million and $6-million. Upon vesting a 51% interest in the property, Gold Fields had a further option to increase its interest to 70% by spending an additional $15-million over three years after the initial term.
In recognition of the value of the infrastructure currently existing on the property, the agreement stipulated that Gold Fields would provide Yorbeau with a credit of $40-million in lieu of Yorbeau's future contributions to the JV.