Discovery Harbour Resources Corp. said in a press releases that Newcrest Resources, Inc., a wholly-owned subsidiary of Newcrest Mining Limited, has provided details of its planned drill program at Fortuity 89, Nevada.
Discovery Harbour and Newcrest have also agreed to extend the date when Newcrest must elect to proceed to the next phase of the Fortuity 89 Option/Joint Venture agreement from March 9 to Aug. 15.
Fortuity 89 is approximately 4 kilometers west of Discovery Harbour’s Caldera property.
Caldera and Fortuity 89 are located in a well-mineralized area of southwestern Nevada with various mines and deposits in the Walker Lane and Northhumberland Gold Trends.
Newcrest will pay $25,000 in consideration of receiving the extension. The drill program has been delayed to provide sufficient time to secure a suitable drill rig and effectively carry out the full drill program
Subject to drill rig availability and potential impacts from COVID-19, Newcrest plans to drill a minimum of eight holes and 3,400 metres beginning in January to test a series of low sulphidation epithermal gold targets on Fortuity 89, according to the press release.
Newcrest completed a successful initial exploration program in the spring, which included a geophysical program encompassing a 675-line kilometre drone airborne magnetic survey, a 250-station ground gravity survey and a 45-line kilometre audio band magnetotellurics resistivity survey as well as geological and alteration mapping and sampling with a soil geochemical program.
The three geophysical surveys showed anomalies consistent between each different geophysical method and the geological and alteration mapping, establishing promising drill targets. The drill targets are proximal to the very limited outcrop and extend into the large plain overlain by a gravel cover.
Newcrest’s program was designed to evaluate the limited outcrop and provide interpreted extrapolations of the geological and structural mineralization controls, which are prospective for concealed low sulphidation epithermal gold mineralization below the shallow unconsolidated alluvial gravels.
Under the terms of the Fortuity 89 Option/Joint Venture agreement Newcrest is undertaking a minimum $1,500,000 exploration program by March 9.
If Newcrest elects to proceed to the next phase, Newcrest would need to make a payment of $250,000 to Discovery Harbour and, for a 51% interest in Fortuity 89, Newcrest would need to make expenditures of $10,000,000 over a 24-month period.
“Newcrest continues to be an excellent partner to work with. We have had regular communications as their exploration plans and programs have progressed. Following the conclusion of the spring exploration program and the identification of a number of drill targets, Newcrest planned to undertake a drill program this fall. When drill rig availability became an issue, Newcrest reached out early to discuss how to address it and the impact on Discovery Harbour. We had constructive discussions and are looking forward to Newcrest undertaking the drill program in the most effective manner to test the targets they identified,” said Mark Fields, president and CEO of Discovery Harbour.
Discovery Harbour is focused on sourcing, exploring and developing mineral properties in mining-friendly jurisdictions.
Newcrest Mining Limited is one of the world’s largest gold mining companies. Its purpose is to create a brighter future for people through safe and responsible mining. Newcrest owns and operates a portfolio of predominantly low-cost, long-life mines and a strong pipeline of brownfield and greenfield exploration projects — predominantly in the Asia-Pacific and North and South America.