Dynasty Gold Corp. (TSX VENTURE:DYG)(FRANKFURT:D5G) has announced that it has signed a Letter of Intent with Azimut Exploration Inc. (TSX VENTURE:AZM) to earn a 65% interest in the Opinaca D property situated in the emerging Eleonore gold camp in the James Bay region of Quebec, Canada.
The Opinaca D property consists of 188 claims over a surface area of 98 km2. It is located about 14 km northwest of Goldcorp's Eleonore property which hosts the Roberto deposit. Major access to the region includes a north-south paved highway (LG2) extending from Matagami to Radisson. A planned road, providing access to the Eleonore property, will directly crosscut the Opinaca D property.
Extensive surface exploration work has been performed including 3,093 soil geochemistry samples, 785 grab rock samples, and a helicopter-borne magnetic and VTEM survey covering 1,047 line-km. The soil samples revealed up to 7.3 g/t of gold. Strong arsenic anomaly in lake-bottom sediments covers several areas of the property. This work has identified a number of sediment–hosted gold targets, comparable to Goldcorp's Roberto deposit in geological setting. The Roberto deposit is currently estimated at 3.15 million ounces of Measured and Indicated resources within 8.2 million tonnes at a grade of 11.9 g/t gold, and 6.25 million ounces of Inferred resources within 15 million tonnes at a grade of 12.9 g/t gold.
Subject to regulatory approval, Dynasty will have the option to earn a 50% interest over a four year period by making staged payments to a total of $300,000, issuing an aggregate of $150,000 in stock and incurring $3.2 million in exploration expenditures. After Dynasty has earned 50% interest in the property, it has the option to earn a further 15% interest, to bring its total ownership to 65%, by making staged payments of an aggregate of $250,000, issuing $100,000 in stock, incurring minimum $2.5 million in exploration expenditures and delivering a bankable feasibility report over a five year period.
"We are very pleased to have reached agreement to earn a significant interest in this Property as we believe it has tremendous potential for a significant discovery similar to Goldcorp's nearby Roberto deposit," said Larry Kornze, Vice President of Exploration. "It is an outstanding opportunity to be participating in an emerging gold camp," said Ivy Chong, President and CEO. "With well defined drill targets; we are excited to get onto the property as soon as possible to start our exploration program."
Source: Dynasty Gold Corp.