According to Mining News Pro - Terms of the deal include a series of cash payments totaling over C$5
million starting from the effective date to the beginning of commercial
production and the transfer of common shares.
A 2% net smelter return royalty will be granted to Ressources Jessie,
and Doré will hold the option to buy back 1% for C$2 million and a
further 0.5% for C$4 million.
Joe Mann operated for 27 of the years between 1956 and 2007,
producing 1.17 million ounces of gold at a grade of 8.26 g/t Au, 607,000
ounces of silver at 5 g/t Ag and 28.7 million pounds of copper at 0.25%
Cu, according to a 2016 technical report.
The mine consists of 55 mineral titles comprising 1,990 hectares.
Doré Copper already owns 22 claims in the Joe Mann area via its 100%
owned subsidiary CBAY Minerals. Four of the 22 claims were recently
acquired and are currently being transferred to CBAY Minerals, the
company said in a press release.
Joe Mann is characterized by E-W striking shear hosted veins
that extend beyond 1,000 m vertically with mineralization identified over
3 km in strike.
In 2017, a high-resolution airborne magnetic
survey was completed and several magnetic anomalies of moderate to strong
amplitudes were identified. In addition to Joe Mann being open along strike and
at depth, the property was poorly explored to the south, and the magnetic
survey has identified numerous high-priority exploration targets.
“This is a rare opportunity to secure a significant high-grade gold
underground asset that remains open at depth and along strike with
numerous high-priority exploration targets. An exploration program at
Joe Mann will focus on the significant potential to extend high-grade
mineralization at depth as well as defining new zones of
mineralization,” said president and CEO Ernest Mast.
At market close Thursday, Doré Copper’s stock was up 8%. The company has a C$36 million market capitalization.