Golden Tag Resources (GOG-V) has agreed to take up to a 60% stake in the Aquilon property in the James Bay region of Quebec.
Initially, Golden Tag can take a 40 % interest by spending $750,000 on exploration over three years; it can take another 20% by another $750,000 over the subsequent three years.
The project is currently equally owned by Sirios Resources (SOI-V) and Quebec government-owned Soquem.
The deal also calls for Golden Tag to issue $100,000 worth of its shares to Soquem once it has take a 40% stake. If Golden Tag decides to remain at 40 %, Soquem will retain 20% and Sirios will have 40%. If Golden Tag increases its stake to 60%, Sirios will have 40% and Soquem will receive another $150,000 worth of Golden Tag shares plus a 1% net smelter royalty. Golden Tag can halve the royalty by paying $500,000.
Golden Tag will act as operator during the six-year earn-in period. Thereafter, each party will fund the project to reflect its current equity interest.
The deal is subject to formal documentation and regulatory approval.
The 64-sq.-km property is 10 km south of the Laforge 1 hydro-electrical complex in James Bay. Work by Sirios and Soquem between 1997 and 2002 outlined several relatively short, sub-horizontal quartz veins over the 100-metre-by-4-km Wolf fault.
The narrow veins occur within sericitic schist and at the contact between felsic volcanics and a quartz-phyric tonalitic intrusive body. Gold grades run as high as 287.4 grams gold per tonne over 2.3 metres and 110.2 grams gold over 3.5 metres.
At Lingo Lake, in the central portion of the property, east-west running veins up to 300 metres long returned between 1.5 and 78 grams gold over widths between 1 and 5 metres. Ten of the 13 shallow holes contained visible gold.
The property is situated in the La Grande subprovince, and centred on a 1-by-10-km, folded felsic volcanic complex that hosts auriferous deformation corridors.
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