Yorbeau Resources Inc. [YRB-TSX; YRBAF-OTC] said IAMGOLDd Corp [IMG-TSX, IAG-NYSE] remains on track to earn a 100% interest in Yorbeau’s Rouyn gold property in Quebec after delivering an option payment of $500,000.
Under a December, 2018, agreement IAMGOLD has the option to acquire the project by making cash payments of $4 million and spending $9 million on exploration over a four-year period. Exploration programs must include the completion of a minimum of 20,000 metres of drilling within the first two years of the agreement.
By the end of the expenditure period, IAMGOLD is required to complete a NI 43-101-compliant resource estimate, after which IAMGOLD can purchase a 100% interest in the project, subject to a 2% net smelter return production royalty by paying Yorbeau the lesser of $15 per resource ounce or $30 million.
IAMGOLD is currently in the second year of the option agreement.
“This payment reflects the satisfaction of our partner in the results obtained to date form infill and evaluation drilling programs,” said Yorbeau President G. Bodnar. “We’re looking forward to resume drilling activities in the coming year,” he said.
On Monday, Yorbeau shares were unchanged at $0.05 on volume of 1.1 million. The shares are currently trading in a 52-week range of $0.08 and $0.022.
The Rouyn Gold property is located 4.0 km south of Rouyn-Noranda, a city with a long mining history.
The property covers a 12-km stretch of the Cadillac-Larder Break and contains four known gold deposits along the 6.0-km Augmitto-Astoria corridor which is situated on the western portion of the property. Two of the four deposits, Astoria and Augmitto, benefit from established underground infrastructure and have been subject of technical reports that include resource estimates.
The Lac Gamble Zone is located between the Augmitto and Astoria deposits. The exploration target potential at Lac Gamble is interpreted to be between 400,000 and 600,000 ounces of gold at a grade between 7.0 and 8.5 g/t gold.