Miranda Gold Corp. (OTCMKTS:MRDDF) has announced signing an optuiion agreement that will allow IAMGOLD Corp (USA) (NYSE:IAG) to earn interest on Miranda’s Antares Project located in Colombia through exploration on earn-in basis.
IAMGOLD will incur expenses amounting to US$100,000 in 2017 so as to maintain the right of being part of the option which commences on January 1, 2018. Additionally, if IAMGOLD decides to enter the option, it will be required to incur a total of US$750,000 in expenses in the coming 12 months.
The Antares is composed of ten exploration applications. The project sits on10, 500 hectares and situated 20 kilometers east-northeast of Medellin and 45 kilometers west-southwest of the Gramalote deposit in the Antioquia Department. There are two operation mines, the Cisneros project by Antioquia Gold Inc. and San Ramon Mine by Red Eagle Mining Corporation situated within 40 kilometers of Antares. This shows it is possible to quickly allow mining in this part of Antioquia in two years or less.
The Antares Project was developed using Gramalote as a deposit analog model. Antares is a sheeted vein and fracture hoisted on granite and a gold system hosted on stockwork. It is located in the northeast shear zones within the Antioquia Batholith. It has characteristics similar to Gramalote. Antares is well known for numerous excavations of bulk-mineralized granite mined hydraulically. Gramalote also has hydraulic mining areas. This include areas which in its resources and pit area.
According to the agreement, IAMGOLD will be given an option to buy a 51% stake in Antares. This will be done by funding expenditures amounting to $5,000,000 plus a commitment to drill not less than 3,000 meters in a period of four years. Additionally, the agreement gives IAMGOLD an option to buy an additional 14% interest in the mineral rights through more exploration expenditures amounting to US$7,000,000 plus a commitment to drill not less than 12,000 meters for a four term from the first term. IAMGOLD can acquire an additional 10% interest for a 75 aggregate in Antares mineral rights.
