Olympio Metals (ASX:OLY) has entered into an option agreement with Bullion Gold Resources (TSX-V:BGD) to acquire 80% of the Bousquet Gold Project in Québec, Canada.
This deal replaces the previously reported letter of intent, whereby Olympio has now agreed to pay C$100,000 ($109,731) within five business days after the execution of the formal option
agreement.
In addition, Olympio will issue C$50,000 worth of shares at a 15-day volume weight average price to Bullion prior to signing, as well as other cash and deferred payments over eight years after achieving certain milestones.
Olympio may exercise the option at any time, subject to and conditional upon incurring C$1 million in exploration expenditure within three years, as well as a further C$200,000 in the last four years for a total of a further C$1 million.
Managing Director Sean Delaney says the project is strategically positioned between substantial gold deposits, with numerous prospects featuring gold at surface and in drilling.
“The geological setting and mineralisation style at Bousquet closely resembles the nearby million-ounce O’Brien Project, where high-grade gold zones are often associated with visible gold in quartz veining,” Delaney says.
“We are progressing approvals and planning for drilling of the first target at Bousquet, being strike extensions of the high-grade Paquin East intercepts.”
The Bousquet Project is a strategic land acquisition for Olympio as it complements its existing Dufay Gold-Copper Project located 60km to the west along the renowned Cadillac Break.
Olympio notes the project has numerous priority drill-ready targets and drillholes have been submitted for permit approval.
Further planned work includes modelling of IP anomalies from historical geophysical data and of numerous magnetic anomalies (magnetic lows) that are not yet resolved, as well as structural analysis and drill targeting.
As Mining.com.au previously reported, the company conducted a review of historical drilling data at the Paquin East prospect which highlights the western strike extent is under-explored. To date, drilling intersections have returned grades up to 129.25 grams per tonne gold.
Olympio plans to conduct modelling of induced polarisation anomalies from historical geophysical data and numerous magnetic anomalies that are not yet resolved. Further, the company will conduct structural analysis and drill targeting at Bousquet.
Olympio Metals is an Australian explorer focused on the discovery and development of critical minerals projects.
The Bousquet Gold Project is a strategic land acquisition which complements the Dufay Gold-Copper Project 60km to the west along the renowned Cadillac Break. The southern half of the project covers a well-defined, regionally mineralised zone to the south of the Cadillac Break, which hosts numerous gold prospects within Timiskaming Group sediments that are exclusively correlated with the development of the Cadillac Break.
Bousquet includes several advanced gold prospects and numerous structural and geophysical targets that remain untested by drilling or modern exploration. The majority of drilling on the project is pre-1947, and all prospects remain under-explored.
Write to Aaliyah Rogan at Mining.com.au
Images: Olympio Metals
