Barrick, Altius team up

Partners Barrick Gold (ABX-T) and Altius Minerals (ALS-V) have agreed to expand their search for Carlin-type deposits in Newfoundland’s Botwood Basin.

Their efforts will focus on the 47-sq.-km Burnt Lake property, which was added to six properties in deal signed late last year.

Till surveying by the provincial government indicates that the area is high in gold, silver, barium, arsenic and antimony. The anomalies are spread along a corridor 10 km long.

Under the original deal between the two, Barrick can earn a 75% interest in six properties in the Mustang trend by funding all exploration costs and making annual cash payments until a production decision is made. Altius will manage the exploration programs for the first two years of the agreement. Barrick can earn an additional 5% interest by arranging development financing for Altius if a production decision is positive.

In return for the addition of the Burnt Lake property, Barrick’s annual exploration funding requirements will be boosted by 25%. Barrick must also reimburse Altius for costs incurred at Burnt Lake to date.

Previous reconnaissance prospecting along the 90-km-long Mustang trend has identified gold-arsenic-antimony and barite mineralization, as well as decalcification, silicification and clay alteration. Primary rock types in the area include calcareous, thin-bedded siltstone and fossil-bearing limestone. Marine siliciclastic rocks are locally thrust over the calcareous units.

Altius Minerals holds a diversified mineral portfolio throughout Newfoundland and Labrador and is exploring for precious and base metals, as well as uranium.