SWEDEN – Agnico Eagle Mines of Toronto and Orex Minerals of Vancouver intend to create a joint venture for development of Orex’s Barsele gold project 600 km north of Stockholm.
Agnico can acquire an initial 55% interest in Barsele by paying Orex US$6 million on closing plus US$2 million on each of the first and second anniversaries of that date. Agnico can earn a further 15% interest by completing a pre-feasibility study. Orex will retain a 2% net smelter return on the project, but Agnico has the opportunity to purchase the NSR in the future for US$5 million.
The Barsele gold property covers a sequence of metasedimentary and metavolcanic rocks of the Proterozoic Svecofennian system. Gold mineralization is hosted in an early orogenic granodiorite. Potentially economic mineralization has been measured over a width of 200 to 500 metres and a strike length of 8.0 km.
There are several major gold deposits near Barsele, and Orex believes its project could contain between 1.5 million and 2.0 million oz of gold. At the end of November 2012, Orex put the indicated resource at 14.1 million tonnes grading 1.21 g/t Au and containing 547,000 oz of gold. The same estimate put the inferred resource at 20.2 million tonnes trading 0.97 g/t and containing 627,000 oz of gold.
Click here to see a photo gallery from the Barsele project.