Mining Technology

Aston Bay secures 80% interest in Nunavut mining property

Under the agreement, Aston Bay is required to invest a minimum of C$3m ($2.21m) in exploration expenditures over the next four years.

Aston Bay Holdings has signed an agreement with Emerald Geological Services (EGS) that could see it earn an 80% interest in the Epworth Property in Nunavut, Canada.

Located around 80km south-east of Kugluktuk in the Kitikmeot Region, the property sits around 70km from tidewater to the north.

Under the terms of the binding letter agreement, Aston Bay is required to invest a minimum of C$3m in exploration expenditures over the next four years.

Additionally, a cash payment of C$50,000 to EGS is stipulated following the agreement date.

Aston Bay CEO Thomas Ullrich said: “We are very excited to option the Epworth Property. This is an impressive 74km-long trend of high-grade copper, silver and zinc mineralisation with accompanying gold, cobalt and lead.

“This mineralisation is in a style typical of the Central African Copper Belt that boasts several large, high-grade deposits. We have similar mineralisation at our Storm Project and look to leverage our knowledge and experience gained there to make new discoveries at Epworth.”

While EGS will operate the project during the term of the agreement, a technical committee will be established to approve all expenditures, ensuring a collaborative approach to the property's development.

Upon Aston Bay meeting the investment commitment, an 80/20 joint venture (JV) between the two parties will be set up.

The binding agreement also outlines that it will be superseded by a definitive agreement, which will govern the terms of the JV.

EGS will retain a carried interest until the completion of a bankable feasibility study on the property. Its contributions thereafter will be credited against future revenue from the property.

Additionally, Aston Bay will have the option to buy back half of this royalty for $1.5m within two years of the start of the property's commercial production.

Emerald Geological Services official Bruce MacLachlan said: “EGS is extremely pleased to partner with Aston Bay in advancing the Epworth Property, as we feel that this underexplored sedimentary belt has the potential to host large base metal deposits.”