Barrick Gold has chosen to continue funding exploration at Alicanto Minerals’ Arakaka gold project in Guyana, South America, moving the contract between the companies into its third year.
The Canadian gold miner may earn up to a 65 per cent interest in the Arakaka project by funding $US10 million, including $US8 million in exploration within four years and $US2 million paid to Alicanto on completion of the earn-in spend.
ASX-listed Alicanto’s 2018 exploration budget includes 3500m of diamond core drilling on the project’s Xenopsaris target area to follow its exploration from reconnaissance drilling and trenching programs in 2017.
Alicanto managing director Travis Schwertfeger said the company was pleased to see Barrick’s confidence in both the Guiana Shield and the discovery potential in Guyana’s Northwest Mining District.
He explained that the focus on the extensive Arakaka project area continued to narrow down to several key areas of planned work.
“The target priorities and their potential have evolved over the past year as a direct benefit from Barrick support, advancing a highly prospective district towards a stage of discovery potential that could not have been achieved by a junior explorer in recent years,” Schwertfeger said.
Barrick’s earn-in agreement with Alicanto was originally announced in March 2016.