TSX-V-listed Trillium Gold Mines on Monday announced that it would acquire an 80% shareholding in the Gold Centre property, which lies in the shadow of the headframe of Evolution Mining’s Red Lake mine, in Ontario.
The property is contiguous with Evolution’s operating property and comprises 258 ha made up of one lease containing 16 claims.
Trillium is required to spend C$2-million each year for five years on the property, for a total spend of C$10-million, and would issue 500 000 shares to Rupert Resources on the effective date of the joint venture and for each of the three years after.
Thereafter, Trillium is required to spend C$500 000 a year in order to maintain its 80% interest in the property.
“Trillium continues focused and strategic M&A [mergers and acquisitions] in the Red Lake camp.
“Gold Centre has the potential to be a world-class asset and generate substantial value to Trillium Gold's market capitalisation and shareholder base,” said Trillium CEO Russell Starr.
The drilling programme completed by Rupert Resources in 2004 and 2007, totalling 11 372 m, successfully intersected the prolific Balmer mafic metavolcanics, the dominant sequence of rocks that hosts the southeastern extension of the Red Lake Mine ore zones at depth.
Trillium Gold is planning a strategic and targeted exploration programme for the Gold Centre project. A key component of the C$2-million drilling programme is deep oriented core drilling to test for the down-plunge extension of the high-grade zone (HGZ) currently in production at the neighbouring Evolution’s Red Lake mine.
With success, Trillium would have proven that this prolific gold zone continues on to the Gold Centre property and is only about 350 m from the current operating areas of Evolution's mine.