Barrick Gold (ABX-T) has signed an agreement with Idaho-based Coeur d’Alene Mines (CDE-N) to explore for gold on Coeur’s Puchuldiza gold property situated about 155 miles northeast of the Chilean port city of Iquique.
Under the deal, Barrick can earn a 75% interest in the property by spending US$2.25 million over the next five years. The major can boost its stake to 85% for another US$5.75 million in exploration expenditures. Coeur can back-in to a 25% interest by reimbursing Barrick 25% of its $5.75 million expenditure, plus a penalty of 50%.
Coeur believes Puchuldiza represents a large epithermal hot spring deposit. Widespread mineralization across the property is hosted by a system of veins, veinlets and stockworks developed in breccias and silicified zones.
The junior believes that there is considerable potential to expand the current near-surface resource; preliminary work suggests the presence of a large high-grade feeder system under the known mineralization.
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