VANCOUVER (miningweekly.com) – Gold major Barrick Gold has signed a comprehensive exploration and development agreement with Premier Gold Mines that include toll-milling and exploration earn-in options for both companies at the McCoy-Cove and Rye projects.
Premier announced on Wednesday that, under the terms of the agreement, Barrick will have an option to earn a 60% interest in the exploration portion of its McCoy-Cove property (the joint venture (JV) property) by spending $22.5-million in exploration before June 30, 2022.
Further, Premier will retain 100% ownership over the Cove deposit portion of the McCoy-Cove property, which includes the high-grade Helen, 2201 and CSD/CSD Gap deposits. Premier will also secure a one-time bulk sample processing arrangement for the planned test-mining programme at its 100%-owned portion of the McCoy-Cove property.
It will also have an option to acquire a 100% interest in Barrick’s Rye Vein property, subject to a back-in right by Barrick, by spending $3-million in exploration before December 31, 2019. The Rye property adjoins Premier’s Goldbanks property option.
“Consistent with Premier’s strategy to secure accretive partnerships, this arrangement will broaden our already positive working relationship with Barrick in Nevada and provides certainty in processing a one-time bulk sample of underground ore from the upcoming development and test-mining programme of the Cove deposit,” stated Premier president and CEO Ewan Downie.