The Toronto-listed equity of Aurion Resources (TSXV: AU) jumped more than 9% Monday after the company revealed Canadian gold major Kinross Gold (TSX: K) has agreed to earn a 70% option on the Silaskaira project in Finland.
The property is next to the Silasselkä vanadium project, currently under option to Strategic Resources Inc (TSXV: SR), in which company Aurion holds about 16% equity interest, and about 28 km northwest of Agnico-Eagle’s (TSX: AEM) Kittilä mine.
Kinross can earn a 70% undivided interest in the property by sustaining a minimum of $5 million in exploration expenditures, of which $1 million must be spent in the first 24 months, and paying Aurion C$100,000 by the fifth anniversary of the agreement.
Kinross will act as the operator.
“We are excited to work with Kinross’ first-class exploration team on the Silaskaira property,” said Aurion CEO Matti Talikka in a statement.
The Silaskaira property is located on the potential northern extension of the Hanhimaa Shear Zone, which hosts several gold occurrences currently being explored by Agnico-Eagle Mines and S2 Resources.
Agnico’s Kittila mine in northern Finland is the largest primary gold producer in Europe, and it hosts the company’s largest mineral reserves.
The mine is a major focus for Agnico Eagle. As part of a major expansion project at Kittilä, the commissioning of an expanded mill with its 25% increase in capacity was completed ahead of schedule in 2020 and the ramp-up towards the design capacity of 2 million tonnes per year is ongoing.
The sinking of a 1,044-metre-deep shaft as part of the expansion project experienced delays due to Covid-19 travel restrictions, and commissioning is now expected to be completed during the first half of 2022.
Aurion shares last traded at C$1.06m capitalizing it at C$103.82 million ($83 million).