The Company has an option to earn up to an 85% interest on the 6,600 hectare Riviere a l’aigle (“RAL”) property which is located in the Chapais-Chibougamau area of Quebec.
The option terms with Kintavar Exploration are:
|Date for Completion
||Common Shares to be Issued *
||Minimum Exploration Expenditures
|TSX-V acceptance for filing of Agreement
|On or before Sept 30, 2021
|On or before Sept 30, 2022
|On or before Sept 30, 2023
|On or before Sept 30, 2024
Upon making the above share issuances and exploration expenditures Gitennes will earn a 70% interest in the Property. Gitennes can increase its interest to 85% by either producing an inferred resource or conducting a PEA by September 30, 2025. Upon completion of an inferred resource Gitennes will pay Kintavar $250,000 in cash or shares at Gitennes’ option and pay an additional $750,000 in cash only on delivering a PEA. Gitennes will grant to Kintavar a 1.5% NSR on the Property and Kintavar will grant Gitennes the right to purchase at any time 1% for C$1.0 million.
RAL is located adjacent to Osisko Mining Inc.’s Windfall Lake property and work to date on RAL has produced strong geochemical anomalies in tills that appear to be associated with major faults and shear zone axes. Osisko’s work on its property has produced similar geochemical anomalies confirming the gold in tills trend seen on RAL.
Mineralization on RAL appears to be associated with northeast trending structures in tonalitic rocks. Priority exploration targets, shown as B, C and D below are based on gold grains in till anomalies. The Company will explore the priority targets with soil sampling and Induced Polarization geophysical surveys.