MAS Gold Corp (TSX-V:MAS, OTCQB:MSGCF) said it has struck an option agreement with Eros Resources Corp on its entire property portfolio in the La Ronge gold belt of Saskatchewan.
Under the agreement, Eros will have the right to earn a 17.5% interest in the properties in exchange for funding $3.5 million in exploration expenditures over a six-month period.
The properties include Preview-North, Greywacke Lake, Elizabeth Lake and Henry Lake, which total an area of approximately 33,860 hectares in the prospective gold belt.
READ: MAS Gold signs letter of intent with Comstock Metals to acquire Preview SW gold project in La Ronge, Saskatchewan
Eros also has the right to earn a 17.5% interest in the Contact Lake property that MAS Gold is hoping to acquire from the Government of Saskatchewan. The Contact Lake acquisition is expected to close in 2022.
MAS Gold and Eros have agreed to conduct a winter 2022 exploration program and summer exploration program that will start in January 2022. The work is expected to focus mainly on the Preview-North property, where the company will drill infill holes within the North Lake deposit, as well as step out drilling to the northeast and to the southwest. Additional drilling will take place at the Point deposit.
Plans have also been outlined in the Program for a regional structural geological mapping and analysis program at both the Preview-North and Greywacke Lake properties, according to MAS Gold.
MAS Gold CEO Jim Engdahl said that the agreement with Eros puts MAS on “good footing” to enhance its key assets in 2022.
“With the completion of this agreement in the first quarter of 2022, MAS will be closer to exceeding its milestone of having an estimated 1 million ounces of gold resources under its ownership,” Engdahl told shareholders.
Vancouver-based MAS Gold is focused on gold exploration projects in the prospective La Ronge Gold Belt of Saskatchewan.
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