Tempus finalises valuable JV as gold breaks through US$1900 per ounce

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Published 04-JAN-2021 11:46 A.M.

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3 minute read

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Shares in Tempus Resources Ltd (ASX:TMR; TSXV:TMRR) surged more than 8% on Monday morning after management announced that the gold explorer had executed a Property Option/Joint Venture agreement with respect to the company’s Mineral Creek Gold Project British Columbia, Canada.

The agreement that provides Robinhood Gold Corp (RGC) with the potential to earn an initial 75% interest in the property is based on the group investing a minimum of C$2 million in maintaining the mineral claims in good standing, with Tempus having no obligation to contribute to project expenditures during the term of the Option/Joint Venture Agreement.

Following completion of RGC’s investment, the parties will establish a joint venture and contribute to project expenditures on an equity basis, while Tempus will retain a 1% Net Smelter Royalty on the Mineral Creek Property.

In commenting on the joint venture agreement, managing director Brendan Borg said, ‘’We welcome this opportunity to unlock value from the project through this transaction with Robinhood, and look forward to seeing the story develop as exploration proceeds.’’

Further share price momentum could be imminent given the importance of this development in terms of opening up opportunities in known high-grade areas of mineralisation.

There was also promising news on the commodities front overnight with gold breaking above US$1900 per ounce for the first time in nearly two months, signalling a possible return to gold stocks after a lull in November.

The push above US$1900 per ounce represents a sustained rally of about US$130 per ounce over a five week period, no doubt fuelled by safe haven buying as COVID concerns continue to impact upon the market.

Historical data bodes well for the future

As a backdrop, the Mineral Creek Gold Project was acquired along with Tempus’ flagship Blackdome-Elizabeth Gold Project in late 2019.

The property is located on Vancouver Island, British Columbia, approximately 10 kilometres east of the town of Port Alberni.

As shown below, the property consists of 42 contiguous mineral claims totalling 9,877.29 hectares, and all 42 mineral claims that do not have any underlying royalties are owned 100% by Tempus subsidiary Sona Resources.

The property is readily accessible by an extensive network of all-season logging roads.

Mineral Creek has a long history of gold mining dating back to the late 1800’s where placer gold was mined from Mineral Creek and China Creek.

Gold was also mined from high grade gold-quartz veins situated in several adits along the Mineral Creek Fault Zone.

Some results from the most recent diamond drilling programs conducted between 2005 and 2010 are highlighted below.

It is worth noting the shallow high grade nature of mineralisation, features that often improve the potential commercial viability of projects due to the strong returns that can be realised from low-cost mining.



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