Boreal Metals, a mineral exploration company, has signed an option agreement with Boliden Mineral for its 100% owned Burfjord copper-gold project in Northern Norway.

The Burfjord project is comprised of six exploration licenses covering a total of 5,500 hectares in the Kåfjord Copper Belt near Alta in Norway. The project is highly prospective for Iron Oxide Copper Gold (IOCG) and sediment hosted copper mineral deposits.

The project is characterised by broad arrays of copper, gold and cobalt bearing veins that occur in broad zones of disseminated style copper mineralisation covering a window of copper prospective geology.

In March 2019, the company unveiled its drill results from Burfjord, which included an intercept of 32m averaging 0.56% copper and 0.26 g/t gold at shallow depths below a group of historic mine workings.

Boreal Metals chairman and CEO Patricio Varas said: “The option agreement with Boliden, a leading mining and smelting company in the region, represents a significant step forward in the advancement of Boreal’s exploration project portfolio.

“Collaboration with Boliden will maximize the potential for a significant copper-gold discovery at Burfjord and will facilitate value creation during these difficult financial market conditions.”

Boliden may earn 51% interest in the project within four years of the effective date of agreement

Under the terms of the agreement, Boliden may earn a 51% interest in the project by spending $6,000,000 on exploration and development of the project within four years of the effective date of the agreement.

An extension to the four-year period to exercise the option may be allowed if there is a delay in exploration and development on the project by an event of force majeure, which includes the current Corona Virus pandemic.

Boliden may acquire an additional 29% stake in the project, by solely funding further advancement work on the project.

Boreal is a mineral exploration company engaged in discovery of silver, zinc, copper, gold, and nickel deposits in historical mining project areas spanning Sweden and Norway.

Boliden is a Swedish mineral production company with a diversified spectrum of operations, including active mines in six mining areas in Europe and five smelting and processing facilities across Norway, Sweden, and Finland.