The Company signed a definitive option agreement with IAMGOLD in December 2018, whereby IAMGOLD has the option to acquire a 100% interest in the Property. Per the agreement, IAMGOLD paid Yorbeau an initial cash payment of C$1 million. In order to earn the purchase option, IAMGOLD must (i) make additional cumulative cash payments totalling C$3 million, (ii) fund and incur C$9 million of exploration expenditures over a 4-year period, including no less than 20,000 metres of diamond drilling within the first two-years and (iii) complete a resource estimate for the Property.

If IAMGOLD then decides to exercise its option to buy a 100% interest in the Property, it must pay Yorbeau an aggregate amount equal to C$15 per ounce of gold as estimated in a NI 43-101 compliant Mineral Resource estimate, capped at C$30 million. In addition to the final cash payment, Yorbeau will retain a 2% net smelter return royalty on minerals produced from the Property.

As operator of the Property, IAMGOLD has already completed a phase 1 program consisting of 13,400 meters of drilling in 48 diamond drill holes. The drilling program was completed with two drill rigs and the meterage completed thus far, which was completed well within the first three months of the program, corresponds to two thirds of the minimum commitment of 20,000 metres of diamond drilling to be completed by IAMGOLD pursuant to the option agreement. The goal of the on-going drilling program is to convert a portion of the exploration potential already drilled off on the Lac Gamble zone by Yorbeau and its previous partner into mineral resources. The drilling completed consists mostly of “in-fill” drilling with the objective of obtaining a drill hole spacing pattern of 50 to 60 meters to support an estimate of mineral resources.

The exploration target potential at Lac Gamble is estimated to be between 400,000 and 600,000 ounces of gold at a grade between 7.7 and 8.5 g/t Au. This estimate of potential, while made according to industry best practices, does not constitute Mineral Resources (as defined in National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”)) that can be reported in accordance with NI 43-101 because the estimate was not made by an independent person and is not supported by a full independent Technical Report (as defined in NI 43-101). The potential quantity and grade are conceptual in nature as there has been insufficient exploration drilling to define a Mineral Resource and it is uncertain if further exploration will result in the target being delineated as a Mineral Resource.

The gold mineralization is hosted within the broad mineralized gold corridor along the Cadillac-Larder Lake Fault Zone represented by the Piché Group of ultramafic rocks. Two main areas on the Property, Astoria and Lac Gamble, are targeted initially and all drilling completed to date is in the Lac Gamble zone, at depths ranging from near surface to a depth of about 400 to 600 meters locally. While assays are still pending for these holes, visible gold has been observed from most of the holes. Assay results will be reported as soon as they are received, validated and compiled.

Gérald Riverin, Company president commented: “We are very pleased with the exceptional work progress at the Rouyn property and with the exploration program established by IAMGOLD in cooperation with the Yorbeau staff. The work progress reflects the very favorable location of the project and the expertise of the Yorbeau staff hired by IAMGOLD. Although assays are still pending, visual examination of drill core is generally confirming the continuity of the mineralized structure between pre-existing holes, while locally showing possible lateral extension of the mineralized system. We are looking forward to receiving pending assays and to additional encouraging results at the Rouyn project”

Source: Company Press Release