Northern Superior Resources has granted Evolution Mining an option to acquire a 75% stake in the October gold project for an aggregate of C$7m in costs and C$1.1m in cash payments.

The October gold project is a district-scale property that comprises 1,284 claims covering an area of 265km2 located in northeastern Ontario.

It is located 105km southwest of Timmins, within the prolific Abitibi Greenstone Belt, around 35km northwest of IAMGOLD’s Côté Lake project and 50km southeast of Newmont’s Borden Lake mine.

The October gold project is part of Northern Superior’s Ontario assets, which the company plans to spin off, as announced in July this year.

Upon closing of the spinoff transaction, the agreement will be implemented in full force, and will be assigned to the spinoff company, said the Canadian junior exploration company.

Northern Superior president and CEO Simon Marcotte said: “This partnership will significantly accelerate the development of the October Gold Project with the support of a leading gold producer equipped with substantial resources.

“Our Ontario spinoff company will therefore be able to focus on its primary asset, the coveted TPK project, renowned for hosting the largest gold grains in till anomaly in North America.

“Meanwhile, Northern Superior continues to advance its exploration and consolidation strategy of the Chibougamau Gold Camp in Québec, where the Company owns four advanced projects well-suited to be integrated into a single mining operation.”

Northern Superior granted the option under a recent earn-in and joint venture agreement.

Under the terms of the agreement, Evolution can earn a 75% interest in the October Gold Project by making certain cash payments and funding certain expenditures.

After spending around C$7m on the October gold project within a pre-defined schedule, the Australian mining company will form a joint venture.

October gold project, located in the traditional territory of the Flying Post and the Chapleau Cree First Nations, is accessible through an all-season highway and network of forestry roads.

The property is thought to occur on a western extension of the Cadillac-Larder Lake break, overlapping around a 15km portion of the Ridout Deformation zone.

In addition to a favourable gold mineralisation, proximity to an operating gold mine, and a second mine in development, the October gold property also has evidence for economic gold.

Northern Superior’s exploration senior vice president and the spinoff company’s proposed president Rodney Barber said: “The October Gold Project is a large property, with significant geologic potential, which covers approximately 11 km of the Ridout Deformation Zone.

“The Woman River Gold Showing also occurs on the property and yielded up to 11.50 g/t Au from grab samples taken by Northern Superior.

“Still at a grassroots stage, we were looking for a partner with the resources and expertise to unlock the potential of this project. We are pleased to partner with Evolution and look forward to a productive collaboration.”