Tahoe Resources is growing its interests in the Timmins gold camp.
Tahoe announced July 5 it has acquired Goldcorp’s two per cent net smelter return royalty, related to production at Tahoe’s Bell Creek Mine, for $12.5 million.
The two parties have additionally signed a letter of intent that would increase Tahoe’s ownership interest in their Whitney joint venture to 100 per cent. Goldcorp’s current interest of 30 per cent would be reduced to a two per cent net smelter royalty.
Currently, Tahoe owns 70 per cent interest in the JV, while Goldcorp holds 30 per cent.
The Whitney project and Bell Creek Mine are located roughly 20 kilometres from the centre of Timmins and covers about 8.9 square kilometres of exploration property in the vicinity of former producing mines like Hallnor, Broulan Reef, Bonwhit, and Hugh Pam.
Together, these historic properties have produced a total of 2.4 million ounces of gold.
Tahoe is currently engaged in a 70,000-metre surface drilling program at Whitney aimed at confirming and expanding resources and advancing a model based on a planned open-pit operation that would transition to underground mining.
Kevin McArthur, Tahoe’s CEO, said Bell Creek and Whitney are “key components” in the company’s strategy to increase gold production in Timmins to more than 250,000 ounces per year by 2020.
