Partners expand hunt for Carlin-type deposits

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

The 47-sq.-km Burnt Lake property has been added to the six properties covered in deal signed late last year.

Till surveying by the Newfoundland and Labrador Department of Mines and Energy 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 about 25%. Barrick must also reimburse Altius for its cost incurred at Burnt Lake so far.

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.