UrbanGold Minerals Inc. (TSX-V: UGM) and Argonaut Gold Inc. (TSX: AR) are pleased to report they have entered into a formal joint venture for the Bullseye property located approximately 17 km south of the former producing Troilus Gold-Copper mine and 100 kms north of Chibougamau, Quebec.
On September 13th, 2019, UrbanGold had announced the signing of an option agreement (the “Agreement”) to earn a 50% interest in Argonaut’s claims, by funding a $500,000 exploration program and issuing 750,000 of its common shares to Argonaut. UrbanGold has now completed its earn-in and as part of the Agreement, Argonaut and UrbanGold are combining their respective claims in the immediate area into a single 8,642-hectare property to form the Bullseye property. Each party will hold a 50% stake in the Property as indicated on the adjoined map and UrbanGold is to remain the operator for the time being.
Two drill programs totaling 2,373 metres were completed in 2019 on the Property which delineated gold mineralization over significant widths on the Cressida block (See February 4th, 2020 news release) which is on strike and in the same geology as the past producing Troilus mine. The Joint Venture now establishes an exploration committee which will review the next steps for the Property, including a second phase of drilling on the Cressida zone.
Mathieu Stephens, UrbanGold President and CEO commented: “We are pleased that UrbanGold has been able to enter into this Joint Venture ahead of schedule and at a time when markets seem to point at a bullish gold sector. We look forward to continue work with Argonaut in the area where we have encountered significant gold mineralization over the next few months. Given its potential for gold mineralization, the Troilus area continues to be our main focus.”
Brian Arkell, Vice-President of Exploration for Argonaut Gold commented: “As part of our diversification strategy, we are pleased to have UrbanGold partner with us as we renew our exploration in Quebec. We recognized the Troilus area as having excellent exploration potential and the team has identified several targets near existing infrastructure which we look to forward to further investigating.”
The Property is located in the Troilus area, near the past producing open-pit Troilus mine (2M Oz of gold produced (Source: Troilus Gold Website)). Key infrastructure remains at the site, including a power line, a 50MW substation, camp, water treatment facility and permitted tailings facilities. It is to be noted that UrbanGold also holds several blocks of claims in the area which are 100% owned by the Company and are not part of the Agreement. Work is currently underway on these claims.
This news release has been prepared by Mathieu Stephens, P.Geo., President and CEO for UrbanGold, the Qualified Person, as defined by National Instrument 43-101.
UrbanGold Minerals Inc. is a precious metals exploration company with its activities focused in key gold prospective areas of Quebec. The Company specializes in project generation supported by substantial exploration expertise. The Company’s common shares trade on the TSX Venture Exchange under the symbol “UGM”.
About Argonaut Gold
Argonaut Gold is a Canadian gold company engaged in exploration, mine development and production. Its primary assets are the El Castillo mine and San Agustin mine, which together form the El Castillo Complex in Durango, Mexico and the La Colorada mine in Sonora, Mexico. Advanced exploration projects include the Cerro del Gallo project in Guanajuato, Mexico and the Magino project in Ontario, Canada. The Company continues to hold the San Antonio advanced exploration project in Baja California Sur, Mexico and several other exploration stage projects, all of which are located in North America.
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