Doré Copper Mining (TSXV: DCMC) announced Thursday that it has entered into an option agreement to acquire a 100% interest in the Joe Mann gold mine in Québec from Ressources Jessie and Legault Metals.
Terms
of the deal include a series of cash payments totaling over $C5 million starting
from the effective date to the beginning of commercial production and the
transfer of common shares.
A 2% net smelter return royalty will be granted
to Ressources Jessie and Doré
will hold the option to buy back 1% for C$2,000,000 and
buy back a further 0.5% for C$4,000,000.
Joe Mann operated for 27 of the years between 1956 and 2007, producing 1.173 million ounces of gold at a grade of 8.26 g/t Au, 607,000 ounces of silver at 5 g/t Ag and 28.7 million pounds of copper at 0.25% Cu, according to a 2016 Technical Report.
Joe Mann operated for 27 of the years between 1956 and 2007, producing 1.173 million ounces of gold at a grade of 8.26 g/t
The mine consists of 55 mineral titles comprising 1,990.2
hectares. Doré Copper already owns 22 claims in the Joe Mann area via its 100%
owned subsidiary CBAY Minerals.
Four of the 22 claims were recently acquired and are currently being transferred to CBAY Minerals, the company said in a press release.
Joe Mann is characterized by E-W striking shear hosted veins
that extend beyond 1,000 m vertically with mineralization identified over
3 km in strike.
In 2017, a high-resolution airborne magnetic
survey was completed and several magnetic anomalies of moderate to strong
amplitudes were identified. In addition to Joe Mann being open along strike and
at depth, the property was poorly explored to the south, and the magnetic
survey has identified numerous high-priority exploration targets.
“This is a rare opportunity to secure a significant high-grade gold underground asset that remains open at depth and along strike with numerous high priority exploration targets. An exploration program at Joe Mann will focus on the significant potential to extend high-grade mineralization at depth as well as defining new zones of mineralization,” said Ernest Mast, president and CEO.
At market close Thursday, Doré Copper’s stock was up 8%. The company has a C$36 million market capitalization.