The Gold Centre property lies to the southeast and within the shadow of the headframe of Evolution Mining’s Red Lake Mine (which has produced 23.8 M ounces of gold at an average grade of greater than 1/2 ounce gold per ton (or greater than 15.6 g/t). The property is contiguous with Evolution’s operating property and comprises 258 hectares made up of one lease containing 16 claims.
Drilling programs completed by Rupert Resources in 2004 and 2007, totalling 11,372 metres, successfully intersected the prolific Balmer mafic metavolcanics, the dominant sequence of rocks that hosts the southeastern extension of the Red Lake Mine ore zones at depth.
In August 2020, Rupert entered into an arm’s length, definitive agreement to joint venture the Company’s Gold Centre property in Red Lake, Ontario with Trillium Gold Mines Ltd (“Trillium” or “TGM”). Rupert and Trillium will form an unincorporated joint venture with respect to the Gold Centre property. Trillium will have an 80% participating interest (a “Participating Interest”) in the joint venture and Rupert will have a 20% carried Participating Interest. In order to maintain its 80% Participating interest, Trillium will be required to spend CAD $2,000,000 per annum in each of the first five years and CAD $500,000 in each subsequent year. Further, Trillium will issue to Rupert 500,000 common shares upon the start date of the joint venture and on each anniversary thereof for the subsequent three years, for a total of 2,000,000 common shares. A management committee will be established comprising members from both Trillium and Rupert to administer decision making of the joint venture.
Rupert will not be required to contribute any funds for the benefit of the Joint Venture on account of its 20% carried Participating Interest. After the completion of a positive feasibility study and a decision to proceed to production, expenditures representing Rupert’s 20% Participating Interest will be treated as a loan by Trillium to Rupert (the “Carried Interest Loan”). The Carried Interest Loan is non-recourse against Rupert except through payment of Rupert’s 20% share of output from the Gold Centre property or of earnings from the production of minerals at the Gold Centre property. Rupert will have the right at any time to pay all, or any portion of, the amounts outstanding under the Carried Interest Loan without notice, bonus or penalty, provided that any such repayment is accompanied by all accrued but unpaid interest.
Trillium Gold is planning a strategic and targeted exploration program for the Gold Centre project. A key component of the initial C$2 million drilling program is deep oriented core drilling (2 holes of 1,000m) to test for the down-plunge extension of the High Grade Zone (“HGZ”) currently in production at the Evolution Mining’s Red Lake mine.