Panther Metals plc’s investee Fulcrum Metals plc has signed an option to purchase the gold tailings project at the former producing Sylvanite mine in Ontario.
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Once the fourth largest gold producing mine in the Kirkland Lake gold camp, Sylvanite milled 4.58 million tonnes of ore and produced 1.67m oz between 1927 and 1961.
The potential acquisition lies 3km from Fulcrum’s own existing Tech-Hughes gold tailings project.
Panther said that the project had a non-compliant historical tailings resource estimate of up to 67,051 oz gold.
The company owns 9,971,839 ordinary shares, equal to 19.99%, in Fulcrum as well as 714,286 warrants exercisable at 17.5p, 476,190 warrants exercisable at 26.25p, and a 2% net smelter return royalty over the Big Bear project.
Chief executive Darren Hazelwood added the agreement was a significant win given the potential economic returns from tailings reprocessing and mine waste management opportunities.
“The close proximity of the two projects offers added potential for increased economies of scale.
“As Fulcrum looks to develop near-term cash flow from these gold projects, the wider provincial scale potential for tailings reprocessing opportunities utilising the Extrakt technology in Ontario is likely to become increasingly apparent both to the company and to Panther as a significant shareholder.”