St. Elias inks new deal for Cueva Blanca with Intigold Mines
St. Elias Mines (CVE:SLI) said Monday that it has terminated a previous agreement to sell 60% of its Cueva Blanca gold property to Amarok Resources, instead opting to sell the stake to Intigold Mines (CVE:IGD).
Under the terms of the new option deal, Intigold can earn a 60% carried interest in the project, located in Northern Peru, subject to a 1.5% net smelter return royalty.
Cueva Blanca covers 1,200 hectares and is located along the same geological trend as a number of multi-million ounce deposits, including Yanacocha, Pierina and Lagunas Norte. Past assay results from the deposit include 9.5 metres of 8.09 g/t gold, including 1.5 metres of 35.84 g/t gold.
To acquire the 60% carried interest, Intigold must make cash payments of $0.2 million to St. Elias over a two-year period, as well as issue 1.0 million Intigold shares and incur $1.5 million in exploration expenditures over a three-year time frame.
