Australian gold miner Newcrest Mining will wind down activities at the Miocene concessions in Chile, after notifying Cornerstone Capital Resources of its intention to withdraw from an option and farm-in agreement.
The agreement targeted epithermal gold/silver and porphyry gold/copper deposits along the interpreted northern extension of the Maricunga magmatic belt that hosts several gold deposits.
However, after drilling three reverse circulation holes, no significant assays have been reported.
Cornerstone CEO Brooke Macdonald said Newcrest had spent more than $2.6-million on the project, well above its $1.1-million work commitment.
“As per the terms of our agreement, Newcrest will wind down activities and leave the concessions in good standing for one year, while Cornerstone determines if we can attract another funding partner to reactivate the project,” said Macdonald.