Fort Knox Gold Resources (FNX-T) and Aurogin Resources (AUQ-V) are collaborating on a diamond drill program at the later’s Batchawana polymetallic property near Sault Ste. Marie, Ont.
By year-end, between 2,400 and 3,000 metres will be drilled to test several circular geophysical targets interpreted as breccia pipes. The interpretations are based on the previous drilling of four similar anomalies, one of which contained anomalous copper, gold, silver and zinc mineralization in veinlets formed in a crackle zone (clast- as opposed to matrix-supported).
Fort Knox is funding the program as part of its requirements to earn a half-interest in the property. The company must spend another $750,000 over four years, as well as pay $20,000 in cash and issue 100,000 shares within one year of signing a definitive agreement.
The deal, which has yet to be approved by regulators, would also see the Fort Knox-Aurogin joint venture acquire a 49% interest in three mining leases that cover a portion of the 20-sq.-km property. To do so, the companies must issue 50,000 shares each to the vendor and collectively grant a 2.75% net smelter return if production is ever achieved.
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