Barrick Gold (TSX: ABX; NYSE: GOLD) is taking quite an interest in the Red Lake district – two interests, in fact – in northern Ontario. The gold major has signed agreements with Red Lake Gold (CSE: RGLD) and Dixie Gold (TSXV: DG), both of which have gold projects in the area.
Red Lake Gold has granted Barrick the right to earn in on its Whirlwind Jack gold project near the town of Red Lake. Barrick will also act as operator.
To earn a 70% interest in Whirlwind Jack, Barrick has agreed to spend at least $4 million for exploration within four years, with $500,000 to be spent in the first 12 months. Barrick has also agreed to deliver an initial resource estimate that includes at least 500,000 oz. of contained gold. If Barrick successfully completes the earn-in, the two companies plant to create a joint venture, with Red Lake Gold holding 30%.
The same terms apply to Dixie Gold’s Red Lake project.
Both projects in which Barrick will be earning interests are contiguous with Great Bear Resources’ (TSXV: GBR; OTC: GTBAF) Dixie gold project 24 km southwest of the town of Red Lake. The Whirlwind Jack property is on the west, and the Red Lake property is on the northeast.