MONTREAL, Dec. 11, 2019 /CNW Telbec/ - Yorbeau Resources Inc. (TSX: YRB) ("Yorbeau" or the "Company") is pleased to announce that in order to maintain its option to purchase a 100% interest in the Rouyn property, IAMGOLD Corporation ("IAMGOLD") has made a cash payment to Yorbeau in the amount of $500,000 corresponding to the first of a series of interim cash payments to be made to Yorbeau during an Expenditure Period of 48 months.
The terms of the definitive option agreement were announced in the Company's press release dated December 17, 2018. Among other commitments, IAMGOLD must make interim cash payments in an aggregate amount of C$3 million during the Expenditure Period, and incur minimum exploration expenditures of C$2 million in each 12‑month period of the Expenditure Period. IAMGOLD has largely met its obligation to incur a minimum of C$2 million of exploration expenditures on the property in the first year. Moreover, the exploration work done within the first year included drilling of 19,966 metres in 66 holes on the Lac Gamble and Astoria zones, while the agreement allowed in fact two years to drill 20,000 metres. The assay results for the latest Astoria drilling are still pending and will be reported once they are received, validated and compiled.
Gérald Riverin, Company president commented: "The receipt of this cash payment marks an important step as it maintains the option agreement for a second year exploration program at the Rouyn property and reflects the confidence of our partner IAMGOLD in the potential of the project. We are looking forward to initiating the next drilling program in the coming weeks."
About the Rouyn Gold Project
The Rouyn Gold Property is located about 4 km south of Rouyn-Noranda, Quebec. With a long history of mining, the city of Rouyn-Noranda offers many advantages for mining and exploration, including political and social stability, good access and infrastructure, skilled mining personnel, and one of the most mining-friendly jurisdictions in the world.
The property covers a 12-kilometre stretch of the Cadillac-Larder Lake Break and contains four known gold deposits along the 6-km Augmitto-Astoria corridor situated on the western portion of the property. Two of the four deposits, Astoria and Augmitto, benefit from established underground infrastructure and have been the subject of technical reports that include resource estimates that were previously filed in accordance with Regulation NI 43-101.
The Lac Gamble zone is located between the Augmito and the Astoria deposits. The exploration target potential at Lac Gamble is interpreted to be between 400,000 and 600,000 ounces of gold at a grade between 7.0 and 8.5 g/t Au. The potential quantity and grade of the exploration targets referred to are conceptual in nature and insufficient exploration work has been completed to define a mineral resource. The property may require significant future exploration to advance to a resource stage and there can be no certainty that the exploration target will result in a mineral resource being delineated. The exploration targets are consistent with similar deposits in the area, deposit models or derived from initial drilling results.
About Yorbeau Resources Inc.
The Rouyn Property, wholly-owned by the Company, contains four known gold deposits in the 6‑km‑long Augmitto-Astoria corridor situated on the western portion of the property. The Company signed a definitive agreement in December 2018, whereby IAMGOLD has the option to acquire a 100% interest in the Rouyn property, and a major drilling program is underway. Two of the four deposits, Astoria and Augmitto, benefit from substantial underground infrastructure and have been the subject of technical reports that include resource estimates and that were filed in accordance with Regulation 43-101. In 2015, the Company expanded its exploration property portfolio by acquiring strategic base metal properties in prospective areas of the Abitibi Belt of Quebec that feature infrastructure favourable for mining development. The newly acquired base metal properties include the Scott Project, which bears important mineral resources (see the press release dated March 30, 2017) and on which a positive Preliminary Economic Assessment was recently completed.
For additional information on the Company, consult its website at www.yorbeauresources.com.
Forward-looking statements: Except for statement of historical fact, all statements in this news release, including without limitation, regarding the prospects of the Rouyn project, drilling results, future plans and objectives are forward‑looking statements which involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate; actual results and future events could differ materially from those anticipated in such statements. Yorbeau disclaims any obligation to update such forward-looking statements, other than as required by applicable securities laws.
SOURCE Yorbeau Resources Inc.
For further information: Gérald Riverin, PhD, P. Geo, President, Yorbeau Resources Inc., [email protected], Tel: 819-279-1336; G. Bodnar Jr., Vice-President, Chief Financial Officer, Yorbeau Resources Inc., [email protected], Tel: 514-384-2202; Toll free in North America: 1-855-384-2202