Issue link: http://resourceworld.uberflip.com/i/1012424
A U G U S T / S E P T E M B E R 2 0 1 8 www.resourceworld.com 57 MINING 4.0 g/t gold and 68 g/t silver. This is about a 562,000-oz gold equivalent. As part of the JV, First Majestic has until January 2019 to file a production notice supported by the required permits, a detailed mining and construction sched- ule and forecast economics. This would see a truck and shovel operation with payment of a 2% royalty to Evrim, generating posi- tive cash flow for future exploration and administrative costs. According to com- pany sources, the opportunity to crystalize the royalty stream could happen within the next 18 to 24 months and last over a long life of production. In 2018, Evrim intends to spend approx- imately $4.0 million on exploration on all the projects, while partners will spend between $7 and $8 million, resulting in a total of 20,000 to 25,000 metres of drilling. First Majestic is completing a 7,000- metre drill program on the Cumobabi Project 60 km southwest of their smelter at Nacozari, Mexico. The area is known for hosting large porphyry copper-molybde- num deposits and the property has three known target areas. Cumobabi is held 100% by Evrim with a 1.5% NSR. After a definitive agreement was recently signed with Coeur Mining [CDE- NYSE] on the Sarape Project, a 57 km 2 early-stage exploration property prospec- tive for epithermal gold-silver deposits in Mexico's Rio Sonora valley, Coeur has planned a US $500,000 exploration pro- gram with drilling expected early 2019. Harvest Gold [HVG-TSXV] will be completing 3,000 metres of drilling on the Cerro Cascaron Project, an epithermal gold-bearing system in the Sierra Madre Occidental of Chihuahua, Mexico, 55 km southeast of Goldcorp's El Sauzal gold mine. Antofagasta has budgeted over $3.2 mil- lion in 2018 for exploration at Ball Creek where it can earn a 70% interest for US $31 million on exploration or a compliant pre-feasibility study over 13 years. Ball Creek is situated in NW British Columbia's rich Golden Triangle. It is prospective for copper-gold porphyry and epithermal gold-silver deposits. Antofagasta also can acquire a 70% interest in the Axe property – a 50 km 2 drill-ready copper-gold target in the Quesnel terrain of south-central BC, a well-known metallogenic belt hosting the Highland Valley, New Afton and Copper Mountain mines. For 2018, a drill targeting program of 2,400 metres of core and 1,000 metres of reverse circulation is expected. Evrim also has a two-year US $1.84 million alliance with Newmont Mining [NEM-NYSE] on greenfield exploration. Newmont may option each property of merit by funding exploration for 10+ years until a NI 43-101 pre-feasibility study is defined on resources greater than 2 million oz gold and cash payments. n