- Avidian Gold (TSXV:AVG) has signed a binding letter of intent with Keltic Enterprises to wholly acquire the Fish Creek Gold Property in Alaska
- Located near Kinross Gold’s Fort Knox mine, the property has the potential to hold both lode and placer gold deposits
- As consideration for the acquisition, Avidian will issue to Keltic Enterprise 2.5 million common shares as well as several net smelter return royalties
- A definitive agreement is expected to be formed by July 31, 2020
- Avidian Gold (AVG) is currently up 8.7 per cent and is trading at C$0.12 per share
Avidian Gold (TSXV:AVG) has signed a binding letter of intent with Keltic Enterprises to wholly acquire the Fish Creek Gold Property in Alaska.
Covering 418 hectares in the Fairbanks Mining District, the Fish Creek Gold Property sits 6.5 kilometres east of Kinross Gold’s Fort Knox Gold Mine and immediately west of Kinross’s Gil deposit.
Due to the region’s geology, the property has the potential to host both placer and lode gold deposits.
While exploration activities at the site have previously focused on placer gold deposits, geophysical surveys have indicated the presence of intrusive bodies, which are typically associated with lode deposits.
Within the Fairbanks Mining District, historical placer gold production is estimated to be in the region of eight million ounces.
Likewise, according to an announcement dated October 19, 2019, lode gold production Kinross Gold’s Fort Knox mine generated in excess of eight million ounces.
Avidian noted in today’s announcement that its chief focus will be on exploring lode gold potential. However, some efforts may be put towards placer gold potential in order to fund future exploration programs.
David Anderson, Chairman and CEO of Avidian Gold, said the acquisition of the Fish Creek Gold Property forms part of the company’s wider strategy to acquire assets in the Fairbanks Mining District.
“This is a prolific gold district that lends itself to favourable metallurgy through heap leaching of oxidized mineralization.
“We have seen oxidation profiles similar to Fort Knox in mineralization identified on our Amanita prospect located 5.5 kilometres south of the Fort Knox pit and anticipate a similar situation at Fish Creek,” he said.
As consideration for the acquisition, Avidian Gold will issue to Keltic Enterprises a total of 2.5 million common shares. Keltic will also be granted a one per cent net smelter return royalty on the Fish Creek Gold Property, along with a 0.2 per cent royalty on Avidian’s Amanita property.
A definitive agreement is expected to be formed between the two parties by July 31, 2020.
Avidian Gold (AVG) is currently up 8.7 per cent to C$0.12 per share at 2:28pm EDT.
