BacTech Mining (BM-V, BMCFF-O) and Intrepid Minerals (IAU-T, ITDXF-O) are joining forces to acquire Goldcorp‘s (G-T, GG-N) 56.7% interest in Agua de la Falda (ADLF), owner of the formerly producing Jeronimo gold deposit in northern Chile.
Goldcorp picked up its stake in Jeronimo under a deal associated with its acquisition of Placer Dome’s assets from Barrick Gold earlier this year.
Under the proposed transaction, BacTech and Intrepid will each chip in US$6.5 million in return for 11,174 of ADLF’s class B shares apiece. The partners would indemnify Goldcorp of any existing environmental and closure liabilities related to the property.
The deal is subject to the first refusal rights of Corporacion Nacional del Cobre de Chile (Codelco), which owns the balance of the deposit. BacTech and Intrepid must also complete due diligence studies.
“We will need to wait for Codelco’s decision on our offer, but remain confident that our combined team can bring the required economic development solution and new jobs to the region,” concluded Intrepid chief executive Laurence Curtis.
The Jeronimo deposit is reportedly home to a historical “potential resource” of 15-16.6 million tons grading 0.16-0.169 oz. gold per ton. The deposit is believed to have bbeen tested by some231 diamond and reverse-circulation drill holes on spacings of 25-100 metres. It has also been accessed by a 1-km-long exploration drive. The historical data upon which the resource estimate is based have not been independently verified. Intrepid’s engineer is currently analyzing the data and constructing a block model.
Agua de la Falda formerly produced from the Jeronimo, El Hueso, and Agua de la Falda deposits situated on 400 sq. km of land 3,900 metres above sea level in Chile’s Maricunga district.
The property includes a 7,500-ton-per-day crushing plant with Merrill Crowe circuit, refinery, and surface furnishing. The property is some 25 km from Codelco’s Potrerillos smelter.
The Jeronimo deposit will be the focus of BacTech’s and Intrepid’s development strategy with ADLF.
If the deal goes through, the partners plan an immediate battery of up to eight months of pilot test work on concentrate and drill core in Perth. Previous metallurgical work indicates the ore may be amenable to pressure oxidation and roasting; BacTech believes its bacterial oxidation process should be able to liberate the gold. Follow up work is also planned for several geochemical and geological anomalies on the property.
“This is a project that BacTech has been pursuing for 3 years. We believe we have put together an exceptional team that is capable of delivering a viable processing solution and, more importantly, the capability to develop a gold mine,” said BacTech CEO Ross Orr.
Venture-exchange listed BacTech jumped more than 12% to 32 after shares resumed trading following the afternoon news on June 20. Intrepid was 7, or nearly 6%, better at $1.25 and Goldcorp was up 83 at $29.54.
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