Kore Mining Ltd (CVE:KORE) shares surged Wednesday as it struck an agreement with major miner Newmont Goldcorp Corporation (NYSE:NEM) over an economic assessment for its Imperial gold oxide project in California, USA.
Newmont has agreed to accept KORE shares in settlement of a future US$1 million payment on the announcement of an economic assessment for the project in the county of the same name (Imperial).
"This agreement provides KORE with significantly more flexibility going into 2020," said Scott Trebilcock, the chief executive of KORE, in a statement. "KORE is now free to complete a preliminary economic assessment of the Imperial gold project. Engineering at Imperial is ramping up quickly with KORE's new COO Marc Leduc on the team and we look forward to the restart of permitting in early 2020."
This agreement by Newmont will expire 12 months after this amendment and gives KORE the opportunity to complete an economic assessment without the burden of a cash liability, the firm noted.
The Imperial project lies in California within 10 miles of Equinox's Mesquite mine and the deposit boasts a historic feasibility study and over 200 km of drilling.
A 2012 report put measured and indicated resources (M&I) at 879,000 ounces gold from around 45.7 million tonnes at a cut-off grade of 0.17 g/t. The property has the potential for open pit (OP) mining and cyanide heap leaching (HL) and the development concept is similar to other mines in the area, namely the closed Picacho mine and operating Mesquite mine.
Kore shares in Toronto added almost 12% to C$0.24 each. Newmont Goldcorp shares eased 0.5%.