Advanced Gold Exploration (CNSX:AUEX) has signed a definitive option agreement with Stage Capital, allowing the latter to acquire a 60% interest in the Buck Lake copper-silver project in Ontario, Canada.
Effective 12 May, the agreement requires Stage Capital to complete cash payments totalling C$190,000, issue 1.5 million shares, and spend C$950,000 ($957,960.6) on exploration over three years to earn its majority stake.
Stage Capital has already made the initial C$50,000 payment and must issue 400,000 shares within 10 business days of listing on a recognised exchange.
The company faces an 18-month deadline to complete its listing, or the agreement terminates automatically.
“Our first order of business at the property is to fly VTEM and horizontal magnetic gradiometer geophysical survey across our 3km length VMS target,” Advanced Gold Exploration Chairman Jim Atkinson says.
The Buck Lake property comprises 180 mining claims covering 3,886ha in the Batchewana greenstone belt, approximately 50km northeast of Sault Ste. Marie.
The fully permitted project hosts a volcanogenic massive sulphide system with a 3,000m electromagnetic corridor.
Advanced Gold’s drilling between 2022 and 2025 intersected massive and semi-massive sulphide mineralisation in 13 of 15 holes.
Discovery hole BL-22-05 returned 1.51% copper and 18.2 grams per tonne silver over 11.75m, including 4.59% copper and 54.6g/t silver over 3.2m. Historical sampling has yielded peak values of 15% copper and 15% zinc.
Upon completing all obligations, the parties will form a joint venture, with Stage Capital holding 60% and acting as operator.
Write to JC Villarba at Mining.com.au
Images: Advanced Gold Exploration
