The junior must pay $108,680 immediately and issue 867,732 shares in two equal installments to earn a 100% interest in the claims. The vendor retains a 1% net smelter return royalty, which the company can buy back for $1.5 million. The deal is still subject to board and regulatory approvals. Past exploration outlined a 4-to-6-km-wide magnetic anomaly in layered intrusion, consisting of peridotities, pyroxenites and gabbro.
Meanwhile, Caribgold continues to size up its Jacinto gold project in Cuba, where resources have been increased to 2.3 million tonnes averaging 5.83 grams gold per tonne. The resource is categorized as inferred, and nearly half of it is considered potentially amenable to open-pit mining.
The calculation is partly based on results from a 5,600-metre drill program over several epithermal quartz veins. Gold values varied from nil to 25.11 grams over 6.72 metres (true width), though most fell below 5 grams. The narrowest interval was 0.17 metre (true width), which averaged 1.84 grams, whereas the widest interval, 12.38 metres (true width), graded 2.24 grams.
Definition and exploration drilling is continuing.
Caribgold operates and owns half of the Jacinto property; the remainder is held by Cuban state-owned GeoMinera. Exploration costs are shared equally between the two companies.
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