In a news release, Seabridge Gold Inc. (SEA:TSX; SA:NYSE.MKT) announced it agreed to acquire Golden Predator's 3 Aces orogenic gold project in the Yukon. The company has termed the project a "high-grade, near surface gold opportunity in an mining-friendly jurisdiction."
For the project, Seabridge will pay Golden Predator 300,000 Seabridge common shares and $263,000 as reimbursement for project-related payments Golden Predator.
When an NI 43-101 compliant mineral resource for 3 Aces reaches 2.5 million ounces (2.5 Moz) of gold, Seabridge will pay Golden Predator $1 million, and when it reaches 5 Moz of gold, the acquirer will pay another $1.25 million. Golden Predator will also hold a 0.5% net smelter returns royalty.
The district scale 3 Aces project consists of 1,734 claims in an accessible part of southeastern Yukon. There, "discrete quartz veins containing arsenopyrite-pyrrhotite-pyrite and free gold are found within a broad zone of gold-bearing iron carbonate-clay alteration envelopes," the release noted.
Past drilling has "encountered a significant number of gold rich zones on the stratigraphic/structural contacts at 3 Aces. By early 2019 the project had completed about 300 holes; 37% of these encountered +5.0 g/t gold intersections and 27% have returned +8.0g/t gold," the company stated.
Seabridge Chairman and CEO Rudi Fronk called 3 Aces a "first rate exploration play with the potential to host a high grade commercially-viable ore body." Additionally, 3 Aces is a "worthy addition" to its existing, exploration projects. . .Golden Predator has done an excellent job of demonstrating the exploration potential at 3 Aces, confirming the project's positive metallurgy and establishing excellent relationships with local First Nations and communities."
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