Vancouver — Seeing potential for an iron-oxide-copper-gold deposit in the Lake Superior region, junior Intrepid Minerals (IAU-V) has inked a deal with London-based Billiton on the Batchawana Bay property in Ontario.
“The deal gives us flexibility as operator to capitalize on our extensive in-house experience with this type of deposit,” says Laurence Curtis, Intrepid’s president.
Under the terms of the deal, Intrepid can earn a 50% stake in the 134-sq.-km property by spending $1.25 million on exploration and issuing 450,000 units to the major over a four-year period. Each unit holds one share and one purchase warrant. Billiton retains a back-in right to earn an additional 20% in the project by arranging production financing.
The property was staked by Billiton last year and covers a number of geophysical anomalies indicative of “iron-oxide-copper-gold-type” mineralization. Subsequent field work identified hydrothermal alteration associated with copper-iron-bearing breccias.
Intrepid is arranging flow-through funding to finance the first year of the program, which is slated to include ground geophysical surveys, followed by drilling.
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