Val-d’Or Mining Enters Agreement for Powell Property near Matachewan

By Kevin Vincent

Val-d’Or Mining Corporation has announced a mining option agreement with three independent prospectors for the Powell Property, a 32-claim, 690.9-hectare site located in Matachewan, Ontario. This agreement has been assigned to Eldorado Gold (Québec) Inc., which has the option to acquire a 100% interest in the property.

“The Powell Property and its recently discovered Golden Stinger Zone represent a promising exploration target,” said Glenn Mullan, President and CEO of Val-d’Or Mining. “Partnering with Eldorado brings financial strength and expertise to this early-stage opportunity.”

Key Terms of the Agreement

• Option Requirements:

• $305,000 in cash payments to the original prospectors over five years (including $30,000 already paid).

• $2 million in exploration expenditures on the property within five years.

• Royalties:

• Upon exercising the option, Eldorado will grant:

• A 1.5% net smelter return (NSR) to the original prospectors (Optionor NSR), reducible to 1% for $500,000.

• A 1.5% NSR to Val-d’Or Mining (VZZ NSR), also reducible to 1% for $500,000.

Exploration and Development

Val-d’Or Mining will serve as the operator, managing exploration and incurring expenditures under a November 4, 2024, agreement. The company will earn a 10% operator fee on all exploration activities approved by a technical committee.

Geological Highlights: Powell Property

• Situated in the Abitibi Greenstone Belt, 4 km north of Alamos Gold’s Young-Davidson Mine.

• Proximate to the Ryan Lake Cu-Mo occurrence and features Neoarchean metavolcanic and metasedimentary rocks intruded by alkalic syenite and feldspar porphyry.

• The Golden Stinger Zone, discovered in 2023, features:

• An exposed gold-mineralized area measuring 225m by 125m.

• Grab samples assaying up to 10.95 g/t Au, 4.03 g/t Ag, and anomalous amounts of Mo, Zn, Cu, and other elements.

Future Prospects

The partnership with Eldorado allows Val-d’Or Mining to advance the Powell Property and other nearby holdings in the Matachewan area. Eldorado’s technical expertise and funding will be instrumental in unlocking the property’s potential, particularly the Golden Stinger Zone, which shares characteristics with the nearby high-grade Timiskaming sediment-hosted mineralization at Young-Davidson.

About Val-d’Or Mining Corporation

Val-d’Or Mining focuses on early-stage exploration projects in the Abitibi Greenstone Belt of northeastern Ontario and northwestern Québec. The company specializes in identifying, acquiring, and developing new exploration targets across a broad range of commodities, including gold, copper-zinc-silver, and nickel-copper-PGE deposits. Through partnerships and joint ventures, Val-d’Or Mining seeks to advance its portfolio of projects to create long-term value.

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