Grafton Options Chile Gold Projects from Newmont

Canadian explorer Grafton Resources (CSE:GFT,OTCQB:GFTFF) secured an exclusive option to acquire the Poseidon and Jabali gold projects in Chile from Newmont (NYSE:NEM,ASX:NEM), consolidating a district-scale exploration package in the Andean mineral belt.

Under the September 21 agreement, Grafton gains the right to take 100 percent ownership of both properties through its local subsidiary. The acquisition physically connects the Poseidon project in Chile’s V Region to Grafton’s existing Alicahue asset, forming a contiguous 14,383-hectare concession block.

Newmont’s prior exploration at Poseidon established a clear continuity of vein trends and left a pipeline of untested drill targets. A surface program of 2,350 rock chip samples returned grades up to 234 grams per ton of gold and 1,500 grams per ton of silver.

Geological mapping and a 2024 structural report also identified a 15-kilometer strike length of potential gold-bearing veins tied to the regional Pocuro Fault Zone. Consolidated data points to widespread epithermal gold-silver-copper mineralization across the unified Alicahue-Poseidon district.

The transaction also delivers the Jabali gold project in Chile's XI Region. The property remains completely undrilled, though Newmont previously completed the necessary drill preparation infrastructure.

“I am extremely excited to announce a pivotal transaction for Grafton that gives the Company access to an exceptional exploration portfolio," Chairman and CEO Campbell Smyth said in the announcement.

"Poseidon and Alicahue together represent an identified by Grafton epithermal vein cluster with gold-silver-copper mineralization potential. Jabali has identified potential high sulfidation mineralization that can be tested quickly. We look forward to moving quickly on work programs on both assets.”

For Denver-based Newmont, the divestment continues its ongoing corporate restructuring. In August, the company settled a joint-venture dispute with Barrick Mining (TSX:ABX,NYSE:B), agreeing to a US$1.95 billion truce.

Newmont consented to Barrick's planned North American initial public offering in exchange for the cash payment and Barrick's agreement to contribute its Fourmile gold project into the Nevada Gold Mines joint venture.

The company meanwhile reported US$2.2 billion in second-quarter free cash flow, US$2.2 billion in adjusted net income, and US$3.8 billion in adjusted EBITDA, alongside 1.29 million attributable ounces of gold produced during the quarter.

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Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.