Fortuna Mining inks 70% earn-in agreement for Guyana gold prospect
As Canadian precious metals miner Fortuna Mining advances its Diamba Sud gold project in Senegal, the company has also entered into an earn-in agreement with a private Guyanese company, Qstone, whereby Fortuna may earn up to a 70% interest in the Quartzstone gold project, in Guyana.
The Quartzstone project comprises a 29 600 ha land package in the greenstone belt of north central Guyana.
Fortuna president and CEO Jorge Ganoza says the company is pleased to establish a presence in the Guyana Shield, which he deems a highly prospective region with a strong history of gold discoveries.
“The Quartzstone project, where historical drilling has identified multiple high-grade zones of near-surface gold mineralisation, is located in a prolific exploration camp, and this transaction provides Fortuna with a staged path to unlock its potential through systematic exploration and drilling,” he adds.
A total 183 diamond core drill holes, comprising 23 190 m, were completed between 2010 and 2017, with the most prominent intercepts including 27 g/t over 5.6 m from 23 m below surface; 4.31 g/t gold over 12.7 m from 42 m below surface; 15 g/t over 13.2 m from 92 m below surface; and 10 g/t over 5 m from 105 m below surface.
Fortuna plans to spend $5.5-million on an initial 5 000 diamond drilling programme to advance priority targets already defined at Quartzstone, while generating additional targets along the highly prospective 26-km-long main shear zone.
The planned work includes airborne magnetic surveys to develop a detailed structural framework supported by high-resolution satellite imagery and digital elevation modelling. Fieldwork will include infill geochemical sampling, auger drilling and detailed geological and regolith mapping over prospective geophysical targets and known anomalous areas.
Fortuna may earn an initial 51% interest in the project by completing a minimum 60 000 m of drilling within four years, while paying all licence fees and funding all related expenditures. Upon exercise of the first option, Fortuna will form a joint venture with Qstone.
Fortuna may then earn an additional 19% interest in the project for an aggregate 70% interest by solely funding a feasibility study within three years of exercising the first option and continuing to pay all licence fees.
Upon signing the earn-in agreement, the company paid Qstone a non-refundable cash option premium of $5-million.
In addition to royalties payable to the State on eventual gold production, the Quartzstone project is subject to a 4.5% net smelter return royalty in favour of the prior owners, which may be repurchased at a price to be determined by the parties in future.
