In 2004, Goldcorp and Pele began exploring north of Wawa on the 101-square-kilometre project, where commercial-size, gem-quality diamonds were discovered in large Archean age deposits.
The new licenced area covers a total of 52 square kilometres, including the southern portion of the original Festival project and the northern portion of the neighbouring property formerly held by Band Ore Resources. The new licenced area now straddles the interpreted western extension of the Goudreau-Localsh Deformation Zone, host to Richmont's Island Gold Mine as well as several past-producing gold mines, including Argonaut's Magino Mine.
"While we remain squarely focused on the development of our 100per cent-owned Eco Ridge Mine Rare Earth and Uranium Project, we are excited to participate in exploration with Goldcorp, Canada's pre-eminent gold mining company,” Pele president Al Shefsky said in a news release.
“The Michipicoten Greenstone Belt has a rich production history and is again emerging as an important Canadian gold district. Our interest in Festival provides Pele with the potential for discovery at virtually no cost to the company."
The Festival project is owned by Pele Mountain and Goldcorp under a joint venture that was entered into in 2006 with each company owning 50 per cent. Recent spending has been funded primarily by Goldcorp, with Pele electing not to contribute its pro rata share. Accordingly, Goldcorp's interest will increase to approximately 51-percent of the joint venture and Pele will own approximately 49 per cent. Any new work on the property will impact the relative percentage ownership of each party in the joint venture.
The term of the licence is for five years commencing on January 1, 2013 and may be extended for an additional five-year term. All minerals produced and marketed from the licenced area are subject to a three per cent royalty payable to the licensor.