TSX-V-listed UrbanGold Minerals and TSX-listed Argonaut Gold have entered into a formal joint venture (JV) for the Bullseye property located about 17 km south of the former producing Troilus gold/copper mine and 100 km north of Chibougamau, Quebec.
UrbanGold announced the signing of an option agreement to earn a 50% interest in Argonaut’s claims on September 13, 2019, by funding a $500 000 exploration programme and issuing 750 000 of its common shares to Argonaut. UrbanGold has now completed its earn-in.
Argonaut and UrbanGold are combining their respective claims in the immediate area into a single 8 642 ha property to form the Bullseye property. Each party will hold a 50% stake in the property and UrbanGold is to remain the operator for the time being.
Two drill programmes, totalling 2 373 m were completed in 2019 on the Bullseye property which delineated gold mineralisation over significant widths on the Cressida block, which is on strike and in the same geology as the past-producing openpit Troilus mine. Key infrastructure remains at the site, including a power line, a 50 MW substation, camp, water treatment facility and permitted tailings facilities.
The JV now establishes an exploration committee, which will review the next steps for the property, including a second phase of drilling on the Cressida zone.
UrbanGold president and CEO Mathieu Stephens says the JV is being undertaken ahead of schedule and at a time when markets seem to point at a bullish gold sector. “Given its potential for gold mineralisation, the Troilus area continues to be our main focus.”
Argonaut Gold exploration VP Brian Arkell says the Troilus area has “excellent” exploration potential and the team has identified several targets near existing infrastructure which the gold miners look forward to further investigating.