Toronto-listed miner Wallbridge Mining has announced a term sheet with fellow listed Kirkland Lake, granting the company the opportunity to earn 75% into its Detour East gold property.
In terms of the non-binding term sheet, Kirkland could earn the interest by spending C$35-million on the property, which lies adjacent to its Detour Lake openpit mine in north-eastern Ontario.
The term sheet, and ultimate joint venture agreement, is strategic for Wallbridge, said president and CEO Marz Kord.
“. . . it allows the company to focus on fully-defining the size potential of our 100% owned Fenelon gold property, while at the same time advancing exploration on Detour East located at the far west end of the very large land position Wallbridge acquired through its acquisition of Balmoral Resources,” he said.
Kord pointed out that the acquisition of Balmoral was primarily motivated by Wallbridge’s belief that the Fenelon gold system was larger than had been defined at that time, and that it extended onto Balmoral’s ground immediately adjacent to its original Fenelon gold property.
This belief has been confirmed by the initial drill results west and south of Fenelon and would be Wallbridge’s immediate exploration focus.
“In addition, numerous other high priority targets on other areas of the recently acquired Balmoral ground, including the area around the Martinière deposit, also deserve exploration which Wallbridge will evaluate over the coming months. Entering into a joint venture with Kirkland on the Detour East will allow us to focus on the Fenelon gold system, and will bring us a high-quality partner with excellent knowledge of the regional geology through its Detour Lake operations, located adjacent to Detour East.”