Agnico Eagle Mines Ltd. (AEM) has formed an exploration joint venture (JV) in Colombia with Newmont Corp. The 50/50 JV, which will be operated by Agnico Eagle, will explore the Anza project and seek other prospective gold targets of district-scale potential in Colombia.

“The Anza project is well located within the Mid-Cauca belt in Colombia, which hosts several world-class gold deposits,” Agnico Eagle Senior Vice President of Exploration Guy Gosselin said. “Historical work on the project indicates the potential for various styles of mineralization, including porphyry, epithermal and VMS.”

Gosselin added that the company has been looking in the area for a while and this “low-cost entry” is consistent with the company’s exploration strategy and existing investment in Royal Road Minerals.

The Anza project is a gold exploration project, comprising exploration contracts and applications totaling approximately 200 km2 located in the Mid-Cauca belt in Colombia. The project is 50 kilometers (km) west of Medellin and 60 km south from Zijin Mining’s Buritica operation. Newmont previously announced an exploration agreement with Orosur Mining with respect to the Anza project in 2018.

Agnico Eagle will solely fund the JV until expenditures equal Newmont’s previous investment in the Anza project, approximately $2.9 million, which is expected to be achieved in the next 12 months. Thereafter, the parties will continue funding on a 50/50 basis.