Jaguar Mining takes option on Iamgold exploration package
Gold junior Jaguar Mining has signed an option agreement with midtier producer Iamgold on a package of 28 exploration tenements, covering 27 141 ha in the prolific Iron Quadrangle, in Minas Gerais, Brazil.
The Iron Quadrangle agreement stipulates that Jaguar has the option to earn an initial 60% interest in the package by spending $6-million on exploration expenditure over four years, starting in the third quarter of 2020.
Jaguar will be the project operator and will be subject to oversight by a technical committee with representatives from both companies.
The Iron Quadrangle agreement doubles Jaguar's current tenement footprint, said Jaguar VP geology and exploration Jon Hill on Wednesday.
“A multitude of historical mines and mineralised occurrences along the prolific Sao Vincente, Paciência and Congonhas crustal scale shear zones, along with existing data from ongoing generative work, indicate Tier 1 discovery potential targets. A discovery, regardless of size, may potentially be processed at Jaguar's underutilised and permitted Paciência mill,” he said.
The Paciência mill has been in care and maintenance since 2012.
The opportunity to increase exploration targets with the Iron Quadrangle agreement, our sustainable production and excess plant capacity, underpinned by an expanding mineral resource and mineral reserve inventor,y can easily support growth exploration initiatives,” added Jaguar CEO Vern Baker.
The Iron Quadrangle contains world-class multimillion-ounce gold deposits such as Morro Velho, Cuiabá, and São Bento. Jaguar holds the second-largest gold land position of the producers in the Iron Quadrangle with more than 35 000 ha
Jaguar’s principal operating assets in the Iron Quadrangle include the Turmalina gold mine complex and Caeté mining complex (Pilar mine and Caeté plant).
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