Rio Tinto Exploration Canada (RTEC) has entered into an option agreement to obtain a 100% interest in Triumph Gold’s Andalusite Peak property in northwest British Columbia.
Under the terms of the option agreement, RTEC will pay Triumph Gold $3,000,000 over a five-year option period and reserve for Triumph Gold a one percent (1%) net smelter returns royalty, which is capped at $50 million. The sum of $25,000 is payable to the Company within 45 days of the agreement date with a further $50,000 payable on or before the first anniversary date of the agreement.
Paul Reynolds, President & CEO of Triumph Gold, commented: “We are very pleased to have Rio Tinto’s considerable technical expertise and proprietary exploration techniques directed towards advancing the Andalusite Peak Property, while allowing Triumph Gold to focus financial and technical resources on our flagship property, the 100% owned, road accessible, Freegold Mountain Property, in the Yukon Territory.
“The agreement benefits Triumph Gold in the near term with cash payments and provides exposure to the upside of a potential future mine development through a 1% net smelter returns royalty.”
The Andalusite Peak property (31.67 km2) was staked by Triumph Gold in January 2017 to cover an alteration “blow out” (a portion of an alteration zone with increased width and alteration intensity) near the centre of a 27km long corridor of intermediate to advanced argillic alteration that was identified and mapped in 2016 by B.C. Geological Survey geologist Bram van Straaten.
Work by Triumph Gold geologists in 2017 and 2018 verifiedan alteration zone and identified two trends of high-grade copper, silver and gold mineralisation on ridge-tops about 1.5 km apart.
The Gentleman-Julep Trend is delineated over 550m with seven grab samples that grade between 0.5% and 3.3% copper 22.1 g/t silver and 2.8 g/t gold. The Tennessee Trend is delineated over 1.5km with 15 grab samples that grade between 0.5% and 67% copper, 500 g/t silver and 2.8 g/t gold.
Triumph Gold is a growth oriented Canadian-based precious metals exploration and development company focused on creating value through the advancement of the district scale Freegold Mountain project in the Yukon territory.