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Barrick ventures out into the Hemlo gold camp

North Shore miner signs option deal with Melkior on exploration property
Barrick Hemlo (aerial)
(Barrick Gold photo)

Timmins' Melkior Resources has secured a deep-pocketed exploration partner in the Hemlo gold camp.

Melkior finalized an option and joint venture agreement with Barrick Gold on Nov. 20. The 12,966-acre White Lake gold and base metals company has a drilling program queued up for 2021. Barrick's Hemlo gold mine is 20 kilometres to the west.

Under the terms of the deal, if Barrick spends $4 million on exploration over five years, the company will pick up a 75 per cent ownership in the property. Once that happens, Barrick and Melkior will enter into a joint venture agreement.

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Melkior has a similar deal with Kirkland Lake Gold on the Carscallen Project in the West Timmins camp.

"With Barrick’s plans to extend the life of the Hemlo gold mine by transitioning it to a modernized tier two asset, it is clear there is still a lot to come from this mining camp that has produced over 21 million ounces of gold," said Melkior CEO Jonathon Deluce in a news release.

"With Barrick as our partner to move the White Lake Project forward, even a small discovery has the potential to be economic because of the property’s proximity in relation to their processing facilities.

"We will continue to focus on advancing our other assets while providing updates as they come available at the White Lake Project."