Northstar Gold Corp. (CSE:NSG) announced it has signed a non-binding Memorandum of Understanding (MOU) with China-based Hunan Nonferrous Geological Exploration Institution to develop the Miller copper-gold property located near Kirkland Lake, Ontario.
The MOU grants Hunan Nonferrous, a subsidiary of the Remote Sensing Geological Survey and Monitor Institute of Hunan Province, the opportunity to explore and develop a near-surface NI 43-101 gold resource at Northstar’s Miller property.
Hunan Nonferrous can earn a negotiated interest in the gold resource by completing diamond drilling of up to 10,000 meters.
Northstar Gold earlier this month provided Hunan Nonferrous access to its Miller property exploration database. Hunan Nonferrous has since assigned a team to mobilize to the site to carry out due diligence site inspections of Northstar Gold’s New Liskeard and Earlton, Ontario offices, core shack facilities and nearby Miller project in early October.
Following the site visits, the two parties will enter into negotiations to finalize the deal’s terms, scope and timeline, with the goal of formalizing a binding agreement for the development of the project’s gold mineral resource.
"Hunan Nonferrous' intentions are to earn an interest in Northstar's Miller Alkalic Intrusive Complex, bulk tonnage gold-telluride mineralizing system centred over the near-surface Allied Gold Zone, by undertaking a substantial expansion diamond drill program,” Northstar Gold CEO Brian Fowler said in a statement.
“This drilling will provide for an inaugural NI 43-101 mineral resource estimate, supplementing SRK Canada's 2022 Exploration Target Study that defined an upper range exceeding 500,000 ounces of near-surface gold averaging 2.04 grams per ton gold at the Allied Gold Zone.”
Fowler concluded: "The MOU with Hunan Nonferrous significantly enhances Northstar's prospects to advance and develop the Allied Gold Zone, along with other gold exploration targets within the Miller Alkalic Intrusive Complex, through collaboration with a senior partner."