Biron Bay options NovaGold gold bet

A definitive agreement is expected within 3-4 weeks which will see a 78% interest in the Summit gold property in New Mexico go to Biron Bay Resources (TSE) and Steeple Rock Mining in exchange for exploration and development expenditures of $3 million(US).

NovaGold Resources (TSE), the present holder of the property, will receive $1 million upon signing and a further $1 million within 12 months. The company will retain a 22% interest.

Biron Bay and Steeple Rock are also expected to agree to earn a 662/3% interest in NovaGold’s other properties in the area in exchange for exploration expenditures totalling $1.5 million.

The Goldfield Corp. of Melbourne, Florida, the parent company of Steeple Rock, and Hecla Mining, the major shareholder of Biron Bay will share duties as operators of the projects.

Mineralization on the Summit property could potentially become a source of silica flux for copper smelters in the southwestern United States.