VANCOUVER, BC / ACCESSWIRE / September 8, 2020 / Gold Terra Resource Corp. (TSX-V:YGT)(Frankfurt:TX0)(OTCQX:YGTFF) ("Gold Terra" or the "Company") is pleased to announce that it has entered into an Exploration Agreement with Venture Option (the "Agreement") with Newmont Ventures Limited and Miramar Northern Mining Ltd. (jointly, "Newmont") on certain mineral leases and mineral claims adjacent to the former Con Mine (the "Newmont Exploration Property") (refer to attached Exhibit A). The Agreement contains two phases of potential earn-in.
In Phase one, Gold Terra can earn a 30% interest by spending a minimum of CDN$3 million in exploration expenditures over a period of three (3) years on the Newmont Exploration Property. Gold Terra will manage, fund and operate the program. Upon completing Phase one earn-in, the parties will form a joint venture.
In Phase two, Gold Terra can earn an additional 30% interest, for a 60% cumulative interest in the joint venture, by sole funding all expenditures and completing a prefeasibility study outlining a mineral resource containing at least 750,000 ounces of gold on the Newmont Exploration Property itself, and a combined 1.5 million ounces of gold on both the Newmont Exploration Property and the mineral claims in the immediate area which are already owned by Gold Terra. Gold Terra has a period of up to four (4) additional years to complete Phase two earn-in and will also manage and operate the Phase two program.
Provided that Gold Terra completes Phase two earn-in, Newmont has a one time, back-in right to earn back a 20% interest in the joint venture, such that Newmont would then hold a 60% interest and Gold Terra would hold a 40% interest. The back-in right is triggered if a discovery of at least five (5) million ounces of gold in all mineral resource categories is made within the Newmont Exploration Property and is exercisable by Newmont by providing certain cash reimbursements and payment to Gold Terra.
Gerald Panneton, Executive Chairman of Gold Terra, stated, "We are very pleased today to announce the beginning of an excellent relationship with Newmont. The achievement of this Agreement reflects the shared vision of two companies with the same goal, ‘find more gold'. Our Agreement allows Gold Terra to better explore the southern extension of the prolific Con mine, where approximately 5.1 million ounces of gold was produced from the Campbell Shear between 1946 and 2005 at a grade of 15 g/t, and over widths of up to 100 metres. With this transaction, Gold Terra secures the immediate southern extension of the Campbell Shear mineralization, which is immediately north of our 100% owned South Belt property."
The former Con Mine is a world-class gold deposit, and is part of the prolific Yellowknife mining camp, where 85% of the Con Mine production came from the Campbell Shear, which was discovered by Cominco Geologist Neil Campbell in 1946.
Gold Terra intends to initiate a drilling program by year-end on the Newmont Exploration Property.