Auteco Minerals cuts an 80-20 joint venture deal with First Mining on Pickle Lake-gold prospect
Another Australian exploration company is making a move to hunt for gold in northwestern Ontario. Auteco Minerals of Perth has inked an agreement for a joint venture with Vancouver’s First Mining Gold on its Pickle Crow gold project, east of the community of Pickle Lake.
Under the terms of the earn-in agreement, Auteco can grab an 80 per cent stake in Pickle Crow by spending $10 million on exploration over the next five years, paying First Mining $4.1 million in cash, and issuing 125 million shares of Auteco to First Mining.
According to a Jan. 27 First Gold news release, what Auteco brings to the table is “a highly skilled management team with a track record of discovery success,” due to its work in reviving a past producing gold mine in Western Australia.
The Perth-based junior miner is expected to bring fresh eyes to the Pickle Crow project, located about10 kilometres from the Pickle Lake airport. The 19,000-hectare property contains a former gold mine that produced close to 1.5 million ounces of gold, with an average grade of 16.14 grams per tonne, between 1935 and 1966.
First Mining picked up the property when it bought PC Gold in 2015. In the release, First Mining said the potential is there for Auteco to find high-grade gold beneath the former mine workings and near the surface.