The Red Chris areas of Canada’s British Columbia is shaping up as a major area of interest with not only the encouraging new intersections and grades for Newcrest at its 70% operation (see separate story), but Newmont, the world’s biggest miner, has lifted its interest in the region with a $A400 million plus takeover announced on Wednesday.
Judging by its exploration update on Thursday, Newcrest looks like it has uncovered a major new area of interest at its Red Chris mine to go with the two existing areas of mineralisation where the current open cut is located.
On Wednesday Newmont revealed the $US311 takeover of Canadian miner GT Gold Corp (A$402 million). The attraction is GT Gold’s Tatogga project in British Columbia, Canada, which is 20 kilometres from Newmont’s Red Chris copper-gold mine. Two prospective areas have already been outlined.
The project’s Saddle North deposit contains an indicated resource of 298 million tonnes with 1.81 billion pounds of copper and 3.47 million ounces of gold.
According to Newmont, the Tatogga project will bolster its gold and copper production further, adding to its interest in British Columbia’s Golden Triangle.
Newmont currently holds 50% of the Galore Creek copper-gold mine in the Red Chris area with Teck Resources.
Newmont will pay $C3.25 ($A3.33) a share for the 85.1% of GT Gold it doesn’t already control.
Newmont expects the acquisition to be finalised in the by June.
Newmont CEO Tom Palmer said in a statement “We are excited to expand our world-class portfolio to include the Tatogga project in the Tahltan Territory located in the highly sought-after Golden Triangle district of British Columbia, Canada,” he said.
“We understand and acknowledge that Tahltan consent (the same people Newcrest is negotiating with at Red Chris) is necessary for advancing the Tatogga project and we will partner with the Tahltan Nation at all levels, and with the Government of British Columbia to ensure a shared path forward.”
The Tahltan Central Government (TCG), the governing body of the Tahltan nation acknowledged the agreement.
“Newmont is a major international mining company who already has an established relationship with the Tahltan Nation as Newmont owns 50 per cent of the Galore Creek Mining Corporation, whose project is in Tahltan Territory,” TCG president Chad Norman Day said in the Newmont statement.
“TCG understands the sensitivities of all mining projects and has communicated with Newmont that Tahltan consent is a requirement for the advancement of any project in Tahltan Territory.
“The TCG looks forward to working with Newmont in a respectful, meaningful and mutually beneficial way.”
