Eurasian Minerals has executed a definitive agreement with Land & Mineral Limited (L&M), a privately-held Australian company, giving L&M the right to acquire Hauraki Gold Ltd, the wholly-owned Eurasian subsidiary that controls the Neavesville gold-silver property in the Hauraki goldfield of New Zealand’s North Island.
Hauraki has also entered into a Joint Venture Agreement and Access Agreement with the Pakirarahi 1B Trust, who control surface rights across a majority of the project area.
The agreement with L&M provides for staged payments and work obligations as follows:
- Reimbursement of Can$100,000 of Eurasian’s exploration costs;
- Payment of 75 troy ounces of gold by the second anniversary of the agreement date;
- Payment of 600 troy ounces of gold within 30 days of the third anniversary of the agreement date;
- A total of 3000 metres of drilling during the first three years after the agreement date;
- Further payments at the rate of 100 troy ounces of gold annually beginning with the third anniversary of the agreement until commencement of commercial production, which payments may be credited against the deferred consideration.
Failure to make the gold payments or to perform the drilling will entitle Eurasian to retake possession of Hauraki or the permit covering the property.
The joint venture agreement with the Pakirarahi 1B Trust provides a mechanism for equity participation in the project by a local indigenous community.
The Neavesville property consists of a single exploration permit totalling more than 30sqkm square that covers multiple centres of epithermal gold-silver mineralization. One of the mineralized centres, named Trig Bluffs, has an historic near-surface inferred resource reported as 3.2 million tonnes averaging 2.7 grams/tonne gold and 8.9 grams/tonne silver, and containing 289,000 ounces of gold and 944,000 ounces of silver.
In addition, a separate higher-grade historic inferred resource of about 470,000 tonnes at 7.1 grams/tonne gold and 20.7 grams/tonne silver, and containing 107,000 ounces of gold and 312,000 ounces of silver, was reported for mineralization at depth beneath Trig Bluffs.