ArcPacific Resources acquires historic Rickard Gold Property near Timmins

ArcPacific Resources wants to breathe life into a mine property near Timmins that hasn't been explored in over 100 years.  

ArcPacific has entered into an assignment agreement with a private company Tauro Capital Corp. to acquire an undivided 100% interest in and to certain mineral claims near Timmins commonly referred to as the Rickard Gold property.

The Rickard Gold Project

The Property is host to the historic high grade Rickard Gold mine in the Abitibi Greenstone Belt. The project is located approximately 70 kilometres from Timmins which has produced over 80 million ounces of gold over the last 100 years. The project is well located within Canada's most prolific gold camp and sits within 25 to 60 kilometers of six currently producing gold mines and eight previous producers.

Gold was discovered on the Property in 1917 and was quickly developed into a mine with the primary zone consisting of two, one to two meter wide, veins striking for at least 200 metres. Four shafts have been sunk on the Property to a maximum depth of 85 meters, where no mining has taken place below this level. Other highlights from the historic mine workings include up to 146.2 g/t over 1.5 meters (Rickard Gold Mines underground mine plans). 

Only limited exploration drilling has been completed on the Property and the vein systems are well developed with minimal exploration drilling testing the gold mineralization to depth and along strike. Given the significant vertical extent of many greenstone hosted quartz carbonate Archean lode gold systems in the region, potential exists to define a greater depth extent of the high grade shoots historically mined and also to identify additional high grade shoots. Early indications suggest that there is a strong structural control on the high grade gold mineralization and that the historic high grades mined could not only extend to depth, but also be repeated an en-echelon structures elsewhere on the Property. Early reports on the project describe "spectacular" visible gold mineralization. Figure 1 attached shows some of the "spectacular" gold mineralization in a sample taken from the Rickard mine published in an article describing the mine (Canadian Mining Journal February 15th 1918 addition). 

The Property has permits in place for drilling which will allow work to begin as soon as the historic data and targets locations have been verified by the company. Year round access and proximity to major road networks makes year round drilling possible. The Property consist of 54 single cell mining claims and one multi cell mining claim for a total of 1,014 hectares which are easily accessible, proximal to power and a local work force. Access onto the project area is 20 kilometers from the nearest main highway. 

Figure 1: Sample from the Rickard Gold mine, Timmins Gold Camp, Ontario (Canadian Mining Journal, February 15 addition, 1918)

To view an enhanced version of Figure 1, please visit:
https://orders.newsfilecorp.com/files/6963/63712_8580f5f2c4b8ea60_001full.jpg

The terms of the Assignment Agreement call for the issuance of 1,000,000 common shares to Tauro upon receipt of TSX-V Approval as consideration for the assignment. 

The company also entered into an amendment agreement dated September 9, 2020 (the "Amending Agreement") with Tauro and the Optionors to amend the Option Agreement. Pursuant to the terms of the Amending Agreement, the Company shall make the following expenditures, cash payments and share issuances over a period of three years: 

Due DateShares IssuancesCash PaymentExpenditures

Within 5 days of receipt of regulatory approval from the TSX-V115,00 Shares$42,500N/A

On or before the 2ndanniversary of the effective date of the Amending Agreement90,000 Shares$75,000Incur expenditures in the amount of $150,000 on the Property.

On or before the 3rdanniversary of the effective date of the Amending Agreement150,000 Shares$150,000Incur expenditures in the amount of $250,000 on the Property.

Total355,000 Shares$267,500.00$400,000 in expenditures

The Optionors have retained a 3% of Net Smelter Returns ("NSR") with respect to the production of all materials from the Property. The Company is entitled to purchase up to 66.67% of the NSR from the Optionors at any time for payment of $2,000,000.

Tauro previously entered into an option agreement (the "Option Agreement") with Recoskie Contracting Limited and Edward J. Korba (collectively, the "Optionors") dated January 3, 2020 to acquire the Property. 

 

Tags: Northern Ontario / Deals & Financial / Gold / All Articles