TSX-V-listed Precipitate Gold has announced the start of exploration and field work by gold major Barrick Gold at the Pueblo Grande project, in the Dominican Republic.
Precipitate’s Pueblo Grande is adjacent to Barrick’s Pueblo Viejo gold and silver mine and the major has an option to earn 70% into the project by spending $10-million.
Barrick has begun its review and validation of the extensive database of field and desktop analytics, including historic drilling results and existing geochemical and geophysical data from work conducted by Precipitate and prior operators.
Barrick's initial work will concentrate on the project's Lithocap Zone, which is located immediately west of the Pueblo Viejo mining pits and was the primary focus of Precipitate's exploration work prior to execution of the earn-in agreement.
Barrick's planned Lithocap Zone field work for the first and second quarter of the earn-in is expected to comprise selective surface geochemical sampling, systematic rock-clay alteration surveying, geological mapping and an initial 2 500 m of exploration drilling.
Precipitate president and CEO Jeffrey Wilson says the timely startup of exploration initiatives closely follow the easing of certain in-country Covid-19-related restrictions shows Barrick’s commitment to “promptly initiate meaningful programmes to explore and advance the project as efficiently and systematically as possible”.
“We're specifically encouraged by Barrick's initial focus within the Lithocap Zone where Precipitate had previously identified multiple prospective targets. Barrick's unique and extensive experience with the style of high sulphidation mineralisation being targeted offers Precipitate shareholders leverage to critical exploration expertise,” he comments.
The earn-in agreement's requirement for Barrick to incur a minimum $2-million in exploration before the second anniversary, and Barrick's intent to conduct a 2 500 m drill programme within the first two quarters of the agreement term, suggests the potential for important near-term exploration updates and results as Barrick's work advances, Wilson adds.