Golden Tag Resources Ltd (TSX VENTURE:GOG) reports that it has recommenced gold exploration on the Aquilon Project, James Bay, Quebec; about 450 km east of Radisson.
A program of approximately 1400 metres of surface drilling has commenced and will further test high grade gold in quartz veins. Drilling will focus on the extension of the Lingo vein north east of very high grade areas identified in recent drilling (see company press release of May 6, 2009). Several other high grade gold occurrences along the Wolf Lake shear will also be tested. Drilling will be completed in November.
The Aquilon property is currently owned by Golden Tag (40%), Sirios Resources Ltd (40%) and SOQUEM (20%). Golden Tag has the right to earn into a 60% interest in the property by incurring certain exploration expenditures before May 2011, at which time SOQUEM would be reduced to a 1% NSR interest upon payment of $150,000 in common shares of Golden Tag.
In a recent agreement with Sirios, Sirios has agreed to incur over $600,000 in expenditures on the property including the remaining portion of the Golden Tag earn-in. Upon vesting of Golden Tag's 60% interest, ownership of the property will rest in a Golden Tag – Sirios 60/40 joint venture with Sirios maintaining the right to increase to 50% upon completion of their earn-in and after Golden Tag has earned their 60% interest. Golden Tag will remain operator of the future 50/50 joint venture and retain a casting vote in all management decisions. Sirios funding will pay for the current drill program.
Golden Tag is developing a program of trenching and bulk sampling on the Lingo Occurrence in 2011. Metallurgical sampling and testing on core samples from prior drilling, planning and engineering are in progress in preparation for permitting of the planned sampling program. The program will be designed to evaluate the potential of the Lingo Occurrence to bare extremely high grade pods of gold mineralization. The planned program will be undertaken after Golden Tag vests in a 60% interest in the property under the current Golden Tag-Sirios-SOQUEM earn-in agreement.
Golden Tag and Sirios will thereafter equally finance the planned trenching and bulk sampling program in 2011 after Sirios has completed its earn-in of $600,000.
Source: Golden Tag Resources Ltd.