Listed mining projects backer Cloudbreak Discovery (LSE:CDL) says it has an exploration partner in 1315956 BC Ltd, for its South Timmins Project, which is targeting lode gold mineralisation.
Cloudbreak Discovery has recently completed an airborne magnetic gradiometer survey and is conducting interpretation and modelling of the data to aid in further exploration targeting and program design.
Cloudbreak Discovery identifies interesting mining projects before it moves on to working with other companies to explore and develop these prospects. It maintains a diversified portfolio of possible mining opportunities.
Partnership sees CAD 1.5m to be spent on exploration on property
The partnership will see 1315956 BC Ltd committing up to CAD $1,515,000 in exploration expenditure on the property, with a minimum of CAD $265,000 to be spent during the first year. In addition, 1315956 BC Ltd will issue Cloudbreak Discovery 2,250,000 common shares and make aggregate cash payments of CAD $495,000 over a three-year period to Cloudbreak Discovery.
Upon completion of these option agreement obligations, Cloudbreak Discovery will transfer 100% interest in the property to 1315956 BC Ltd. For the transfer, Cloudbreak Discovery will retain a 1% net smelter royalty. As a condition of the agreement, 1315956 BC Ltd must enter into a go public transaction within three months of the effective date of the agreement.
The South Timmins Project was generated in conjunction with Vector Geological Solutions of Vancouver, British Columbia.
Kyler Hardy, CEO of Cloudbreak Discovery, described the area the project is located in as “the most prolific and largest gold producing greenstone belt in the world.”
“As we see new discoveries emerge out of this camp, we are revisiting areas previously explored and applying modern thinking and exploration techniques,” he added. “With 120 years of mining and over 190 million ounces produced the potential for discovery in the Abitibi remains.”
Listen: Podcast with Kyler Hardy, CEO of Cloudbreak Discovery
The geology of the South Timmins project
The South Timmins Project is underlain by archean greenstone, particularly andesite to dacite flows, tuffs and breccias interbedded with rhyolitic flows and tuffs. There are also mafic to ultramafic rocks and iron formation with massive granitoid to the east.
The property is considered an early-stage property and has only seen cursory surface exploration to date, with samples from previous explorers with grab samples yielding 225 and 212 parts per billion gold along the contact between the rhyolite and andesite flows on the southern part of the property.
Cloudbreak Discovery is a leading London-listed natural resource project generator, working across a wide array of mineral assets that are being developed and managed by an experienced team with a proven track record. Value accretion within the projects being developed by Cloudbreak’s generative model enables a multi asset approach to investing. Diversification within the mining sector and amongst resource classes is key to withstanding the cycles of natural resource investing.