Emgold Mining has signed an earn-in with option to joint venture agreement with Kennecott Exploration, a subsidiary of Rio Tinto, covering Emgold’s New York Canyon property 30 miles east of the town of Hawthorne in west-central Nevada. The property hosts both copper oxide skarn and copper-molybdenum-gold-silver sulphide porphyry mineralization in three known targets: Longshot Ridge, Copper Queen and Champion. Kennecott can earn up to a 75% interest in the property by completing a total of $22.5 million in exploration expenditures over three options periods of five years, three years, and three years, each.
While earning in, Kennecott will make exploration and development decisions for the project.
“The agreement with Kennecott represents another successful example of Emgold’s business strategy of acquiring assets, adding value, and monetizing them through sale, option, joint venture, or other business transactions,” Emgold President and CEO David Watkinson said. “In this case, we are pleased to have Kennecott earn into and, if successful, become a joint-venture partner with Emgold and take the lead to advance New York Canyon.”