Val-d’Or Mining Corporation – AGB Option
Golden Valley Mines granted an option to Val-d’Or Mining to acquire a 100% interest in 61 of its grassroots properties. Val-d’Or Mining must incur $4,000,000 of expenditures with respect to exploration and other mining operations on the properties before December 31, 2021. As consideration for the option, Val-d’Or Mining will issue 16,666,668 common shares to Golden Valley Mines at a deemed price of $0.12 per share for an aggregate deemed value of $2,000,000 (issuable as to 25% on or before each of December 31, 2018, 2019, 2020 and 2021). Val-d’Or Mining has granted Golden Valley Mines a royalty equal to 1.25% of the net smelter returns from the properties on the terms set out in the Option Agreement. 1% of the royalty may be bought back by Val-d’Or Mining by paying Golden Valley Mines $5,000,000 at Val-d’Or Mining’s option, in cash or shares at a deemed price per share equal to the market price of Val-d’Or Mining’s shares at the time of such election.
Val-d’Or Mining has exceeded its obligation to incur $500,000 of expenditures on or before December 31, 2018 as required under the Option. Val-d’Or Mining intends to continue the earn-in process and it has therefore issued, subsequent to year end, a total of 4,166,667 of its common shares, valued at $416,667, to Golden Valley Mines.
Val-d’Or Mining’s primary focus for the 2019 exploration program are on two prospective gold targets, the Oregon Prospect and Magoma Prospect. They are both located in the Abibiti Greenstone Belt in northwestern Québec, and within close proximity to the mining and exploration center of Val-d’Or Québec.
The Oregon Prospect covers an elongated granodiorite intrusion that dips to the northeast and lies along a northwest southeast axis. The granodiorite part of the property hosts the historic Oregon Showing (Corps Minéralisé 32/C05-0011. MRNF SIGEOM). This mineral occurrence occurs within a fracture zone that hosts a series of parallel quartz stringers mineralized with pyrite. It has been traced out by previous exploration programs over a strike length of one hundred and twenty metres. The primary metallogenic target at the Oregon Prospect is an intrusive-hosted, bulk tonnage gold deposit.
The Magoma Prospect overlies the felsic volcanic rocks of the Hunter Mine Group and is situated midway between the Rouyn-Noranda and Normetal mining camps. The Magoma gold showing occurs within an extensive network of quartz veins controlled by intense shearing that cuts through tuffacaeous and porphyritic units of rhyolite. This geological setting is proximal to a fault splay from the regional gold bearing Macamic Deformation Corridor that passes through the northeast part of the property. The primary metallogenic target at the Magoma Prospect is an orogenic gold deposit spatially related to a deformation zone hosted in altered and mineralized metavolcanic rocks.
Diamond drilling activities are expected to commence on the two properties following completion of a short, follow-up program of geological mapping, prospecting and sampling. The objective of this work is two-fold: 1) ground-truthing of defined geophysical anomalies from the 2018 surveys completed by Val-d’Or Mining, and 2) complete detailed mapping and characterization of the historical mineralization, to assist with drill target selection.
Additional exploration activities have been completed or are also planned by Val-d’Or Mining on other optioned properties in order to advance them towards “drill-ready” status either internally or through a joint venture.