A western Australian junior miner has landed on a high-grade gold property near Timmins.
European Cobalt of Perth announced on May 31 the signing of an option agreement to acquire the Edleston Gold Project from 55 North Mining of Toronto.
The 64-square-kilometre property is 40 kilometres south of Timmins. Alamos' Young-Davidson gold mine is to the east with IAMGOLD's Cote Lake deposit in Gogama to the west.
Situated within the Cadillac-Larder Fault Zone and the larger Abitibi Greenstone gold belt, the property has seen extensive past exploration with multiple high-grade gold hits from more than 46,000 metres of drilling and 156 drill holes across a strike length of 540 metres and down to a depth of 500 metres.
According to European Cobalt, there's a number of "walk-up" targets yet to be drilled across a corridor of 3,300 metres of strike and more than 10 kilometres of possible mineralization.
“The Edleston Gold Project is an advanced exploration opportunity with particularly exciting exploration upside potential," said managing director Rob Jewson in a June 1 news release.
For technical director Dale Ginn, this property is familiar ground.
“Through my prior involvement in the discovery of Edleston, I am delighted at the opportunity to implement the exploration required to define the significant potential of this large mineralising system," he said.
"After finishing my involvement at Edleston in 2016, I have been compelled to find a way to unlock the scale of the system and focus on the high-grade targets.”
According to the option agreement, European Cobalt could transfer up to $700,000 and issue 100 million common shares to 55 North.
55 North shareholders will have their say on this transaction at an Aug.7 meeting.
European Cobalt has two properties in Slovakia and one in Finland where it is exploring for cobalt, nickel, copper and silver.
In a June 8 statement, 55 North CEO Bruce Reid was excited to have signed a letter of intent with European Cobalt.
"The sale of this asset is the latest part of completing the reorganization that commenced in January 2017. The board believes this sale unlocks unrecognized value in these assets and, in the hands of European Cobalt, shareholders will continue to benefit on the upside. 55 North is currently evaluating new highly prospective gold properties to acquire and more information will be made known in the coming weeks."