Yorbeau Resources Inc. ("Yorbeau") (TSX:YRB.A) has announced that Agnico-Eagle Mines Limited intends to carry out in 2011 an exploration program budgeted at $4.8 million on the Ellison property where Yorbeau retains a 2.5% Net Smelter Return Royalty.
In 2002 Yorbeau sold the Ellison Property to Agnico-Eagle for consideration consisting of $500,000 paid in cash, and future consideration consisting of a Discovery Bonus of $500,000 payable upon commercial production being achieved on the property, together with the retention of a Net Smelter Return Royalty. This royalty is a sliding scale royalty which is set at 2.5% if the market price of gold as established by the London Bullion Market Association is over US$425 per ounce.
Current exploration results indicate that Iamgold Corporation's Westwood gold zone extends onto Agnico-Eagle's Ellison property at depth. Ellison is located immediately west of the Company's LaRonde and Bousquet properties in the Abitibi region of Quebec, and immediately east of Iamgold's Westwood gold project.
Drill hole 114-10-16J intersected the interpreted Westwood horizon at a depth of about 2,600 metres below the surface and returned 8.0 gpt gold with 0.11% copper over an estimated true width of 13.3 metres. Included in this intercept was a higher grade interval of 14.1 gpt gold and 0.16% copper over 7.0 metres. This intersection is roughly 120 metres above and to the east of hole 114-10-16G which was previously reported.
Ellison 2010 deep drill results, Westwood zone
There is significant potential to extend the mineralization to the east and possibly at shallower depths. A follow-up exploration program, is planned for Ellison in 2011 at a budget of $4.8 million, and will include 9,500 metres of drilling using two drill rigs."
The qualified person under National Instrument 43-101 who has reviewed and approved the content of this release is Laurent Hallé, P.Geo.
Source: Yorbeau Resources Inc.