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April 30, 2023
Labyrinth to target increase in 500,000oz Resource through diamond drilling program
Labyrinth Resources Limited (ASX: LRL) (‘Labyrinth’ or ‘the Company’) is pleased to advise that it has agreed revised terms and conditions for its purchase of the Labyrinth gold project in Canada from G.E.T.T. Gold Inc (TSXV: GETT)(‘GETT’).
The new terms are favourable for both parties and enable Labyrinth to focus on growing the Labyrinth Resource, which stands at 500,000oz at 5gpt1.
The original terms and conditions of the Project Acquisition Agreement were set out in Labyrinth ASX Announcements dated 2 September 2021, 9 November 2022 and 3 April 2023.
The key revised terms are:
- Delivery of Payable Gold to GETT over a 48-month period commencing 8 November 2021 will now only be triggered upon commencement of profitable Production Activities at the project in the future.
- Payment of the remaining acquisition cost previously due 31 March 2023, being CAD$1 million, is deferred and divided into two equal payments of CAD$500,000 (plus accrued interest at a simple rate of 7% per annum from 30 November 2023) on or before 30 April 2023 and 29 September 2023.
- Delivery of 450oz of Payable Gold to GETT previously due 31 March 2023, is deferred until the earlier of 31 December 2023 or the date on which the Company publicly announces a mineral Reserve estimate and can be delivered via the issue of fully paid ordinary shares in Labyrinth of the cash equivalent of 450oz.
Detailed revised terms included at the end of this announcement.
Labyrinth Chief Executive Matt Nixon said: “The amended terms deliver substantial benefits to both companies because they enable Labyrinth to focus on growing the high-grade Resource at the Labyrinth Gold Project. This will in turn ensure we unlock the full value of the project for the benefit of both companies.
“With the gold payment schedule now only commencing once the project is delivering profitable ounces, capital can be used to create value through the next phase of diamond drilling. This program is aimed at increasing the maiden 500,000oz JORC 2012 Mineral Resource established in September last year. The pathway to future production has been simplified.
“I would like to acknowledge the positive approach to negotiations by GETT, which enabled an outcome that will bring value to the shareholders and stakeholders of both Companies.”
Click here for the full ASX Release
This article includes content from Labyrinth Resources, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
LRL:AU
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Newmont Uses Drones, Remote Equipment to Reach Trapped Miners in Red Chris Mine
Newmont (TSX:NGT,NYSE:NEM) has deployed drones and a remote-controlled scoop to help rescue three workers trapped underground since Tuesday (July 22) at its Red Chris gold mine in BC.
The incident occurred during work on a non-producing section of the mine’s underground development project.
According to the company, the three contract employees were initially located more than 500 meters beyond the site of the first collapse. They were directed to relocate to a designated refuge chamber before a second fall of ground sealed off the access way and disrupted communication.
“Following the first event, contact was established with the individuals and confirmation was received that they had safely relocated to one of multiple self-contained refuge bays,” Newmont said in a Wednesday (July 23) statement. “The refuge stations are equipped with adequate food, water and ventilation to support an extended stay.”
The company is using aerial drones to assess underground conditions, while a remote-controlled scoop has been deployed from Newmont’s Brucejack mine, also in BC.
It will begin clearing the estimated 20 to 30 meters of debris obstructing the tunnel.
Communication with the trapped miners remains severed after the second collapse, but the company said the men are believed to be sheltering in a chamber designed to support up to 16 people.
Operations at Red Chris have been suspended to focus entirely on rescue efforts. The company said that it has activated emergency protocols and assembled specialized rescue teams from nearby mine sites.
While the full extent of the damage underground is still being assessed, the use of unmanned equipment is intended to reduce risk to emergency personnel while the area remains geotechnically unstable.
Newmont has not provided an estimated timeline for reestablishing contact or extracting the workers, but emphasized that all available technology and expertise are being brought to bear.
The Red Chris mine, located roughly 80 kilometers south of Dease Lake and more than 1,000 kilometers north of Vancouver, is operated by Newmont under a 70/30 joint venture with Imperial Metals (TSX:III,OTC:IPMLF).
The operation has been producing since 2015, though the incident occurred in a non-producing development zone.
Last year, Red Chris produced approximately 40,000 ounces of gold, making it one of the smaller contributors in Newmont’s global portfolio. The company acquired its majority stake in the mine through its 2023 purchase of Newcrest Mining, which previously managed the asset.
Don't forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.
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Joe Cavatoni, senior market strategist, Americas, at the World Gold Council, explains that market risk and uncertainty are driving gold, with H1 2025 seeing multiple record highs.
"Think strategically when you think about gold, and keep that allocation in mind," he said.
He also shares thoughts on the importance of central bank allocations and the potential impact of tariffs and US economic conditions on gold during the second half of 2025.
Don’t forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Georgia Williams, hold no direct investment interest in any company mentioned in this article.
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Falco Resources Eyes Governmental Decree for Horne 5 Gold Project Before Year End
Falco Resources (TSXV:FPC) has entered the final stages of the environmental authorization process for its flagship Horne 5 gold project in Quebec, with a government decision expected by late 2025.
“(An environmental analysis) report should be submitted to the minister in the next few months, and the final decision has to be done by decree,” said Luc Lessard, president and CEO of Falco Resources, in an interview with Investingnews.com. The company is hoping the decision will come sometime late in 2025, Lessard added.
Located in the prolific Abitibi region, the Horne 5 project is central to Falco’s strategy to support Quebec’s ambition to lead the energy and technological transition. Lessard emphasized that the project’s mineral profile, particularly its zinc and copper content, makes it well-positioned to align with Quebec’s broader critical and strategic minerals development plan.
The chief executive also noted the Horne 5 project leverages several environmental innovations, including a set of measures to protect waterways and drinking water intake, the Implementation of a dust collection system to reduce metal emissions from mine ventilation by 98.64 percent, and the use of already disturbed sites unlikely to be rehabilitated without the mining project.
Falco is also looking to the future with significant exploration potential for the Horne 5 project, beyond its current deposit.
Falco owns about 67,000 hectares of land package in the Abitibi, Lessard noted. “That gives us the possibility to increase additional resources closer to the surface, add some feed to the central mill of the Horne 5 project, and that will increase the life of mine.”
Watch the full interview with Falco Resources President and CEO Luc Lessard above.
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