- Argo Gold (CSE:ARQ) has signed a mining claim acquisition agreement with Denison Mines to wholly acquire the Talbot Lake Gold Project
- The company will issue to Denison a total of 1.35 million common shares and C$135,000 in cash
- However, the project will remain subject to a net smelter return royalty of two per cent
- The company’s work over the rest of the year will include basic geological mapping, GPS relocation of the diamond drill holes, and the compilation of previous exploration data
- Argo Gold (ARQ) is currently down 3.03 per cent and is trading at 16 cents per share
Argo Gold (CSE:ARQ) has signed a mining claim acquisition agreement with Denison Mines to wholly acquire the Talbot Lake Gold Project.
Under the terms of the deal, Argo will issue to Denison a total of 1.35 million common shares and a cash payment of C$135,000. The project will also be subject to a net smelter return royalty of two per cent, issuable to Denison.
In addition, should Argo establish a total mineral resource of over one million ounces of gold at the Talbot Lake Gold Project, the company will make a further $1.5 million payment, in either cash or common shares, to Denison.
Covering a total of 760 hectares, the project contains a number of unexplored iron formations as well as a partially explored high-grade gold deposit.
Denison acquired the property in 1998 and later briefly optioned it to Abbastar Resources, which noted that gold mineralisation at the site existed in both quartz vein and iron formation host rocks.
Under its ownership, Denison conducted down hole orientation surveys on a number of drill holes, determining that the significant auriferous vein increased along strike and to depth.
Over the rest of 2020, Argo will continue exploration work at the Talbot Lake Gold Project with basic geological mapping of the iron formations and the GPS relocation of diamond drill holes. The company will also digitally compile previously collected exploration data, including geological and airborne surveys.
Argo Gold (ARQ) is currently down 3.03 per cent and is trading at 16 cents per share at 2:49pm EDT.