Fury Gold Acquires Newmont’s Eleonore South Project Stake

Canadian miner Fury Gold Mines has purchased Newmont Corporation (NYSE: NEM)’s nearly 50% stake in the Quebec-based Éléonore South project for $2.2 million. The high-grade gold exploration company will spend an additional $960,000 on the acquisition of around 30.4 million Sirios Resources shares held by Newmont as part of Éléonore South’s consolidation.

Fury said the acquisition of Sirios shares was for investment purposes and that the company would continually evaluate the investment to determine the feasibility of any additional dispositions or purchases.

Newmont recently announced that it was planning to divest six of its noncore properties, including the Yukon Territory-based Coffee Project; the Ontario-based Porcupine and Musselwhite mines; its 70 percent stake in Haveiron, a Western Australia jointly owned asset with its partner Greatland Gold; and the Éléonore South project in Quebec. The Éléonore South project is located in a region with significant gold mineralization — Sirios’ Cheechoo deposit is in the east and Newmont’s Éléonore mine is in the north.

Fury Gold Mines CEO Tim Clark said the company values its “strong relationship” with Newmont and was confident of the partnership leading to positive outcomes for both organizations. He said the Éléonore South Joint Venture (ESJV) currently ranks as a leading prolific mineral discovery targets.

In a news release issued after Fury Gold acquired Newmont’s 49.978% stake in the Éléonore South project, Clark said the Canadian miner is excited to have 100% ownership because it will open up the way for wider exploration and increase Fury’s chances of getting a greater return on investment.

According to Fury Gold, prospecting efforts have uncovered two different mineralization styles within the project: intrusion-related disseminated gold mineralization and structurally controlled veins of quartz. The former was comparable to the top-grade deposits within the Éléonore asset while the latter is similar to low-grade ore extracted from the Cheechoo deposit.

Fury Gold said that the project still has plenty of unexplored gold in-till anomalies with near-identical characteristics as those in the mineralization exhibited by the Cheechoo; the company also noted that dealing with these anomalies would be one of its major objectives. With more than 4.5 million ounces of gold estimated to surround the ESJV project, it has significant exploration potential.

Bryan Atkinson, SVP of exploration at Fury Gold Mines, says the team is excited to leverage its “systematic and disciplined exploration approach” to take advantage of the gold anomalies at the  Éléonore South project.

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