MONTREAL, Jan. 14, 2020 /CNW Telbec/ - Yorbeau Resources Inc. (TSX: YRB) ("Yorbeau" or the "Company") is pleased to announce that diamond drilling has commenced at its Rouyn property with its partner IAMGOLD Corporation ("IAMGOLD"). The Company signed a definitive agreement in December 2018, whereby IAMGOLD has the option to acquire a 100% interest in Yorbeau's Rouyn property in Quebec, Canada.
In accordance with the agreement, an initial cash payment in the amount of $1,000,000 and an interim payment of $500,000 were made by IAMGOLD to Yorbeau (press release of December 11, 2019). In order to earn the purchase option, IAMGOLD must make cumulative cash payments of C$4 million and fund C$9 million dollars of exploration expenditures over a 4-year period, including no less than 20,000 metres of diamond drilling within the first two years. A total of 19,966 metres were already drilled within the first year of the agreement.
The Rouyn Property is located about 4 km south of Rouyn-Noranda, Quebec. With a long history of mining, the city of Rouyn-Noranda offers many advantages for mining exploration, including political and social stability, good access and infrastructure, skilled mining personnel, and one of the most mining-friendly jurisdictions in the world. The Rouyn Property covers a 12-kilometre stretch of the Cadillac-Larder Lake Break. The Astoria deposit already benefits from significant underground infrastructure including a 515 metre deep shaft and over 5 kilometres of lateral workings.
Two drill rigs have now mobilized to the property and a program of approximately 14,000 metres is planned. The initial focus of the program will be on the Lac Gamble zone with the objectives of converting exploration potential to mineral resources and of testing the possible extension of the zone to the west. The Lac Gamble zone remains indeed open to the west as indicated by the 2019 drilling program (press release of July 31, 2019).
Gérald Riverin, Company president commented: "We are most happy to see the drills turning again at the Rouyn property and pleased to be working with the IAMGOLD team. Continuing on with more drilling no doubt reflects the confidence of our partner IAMGOLD in the potential of the Rouyn project. The drilling program was established by IAMGOLD in close cooperation with the Yorbeau staff, and we are looking forward to forthcoming results."
Work at Yorbeau is carried out under the supervision of Gérald Riverin, Ph.D., P. Geo. He is a qualified person (as defined by NI 43-101) and has reviewed and approved the content of this release.
About Yorbeau Resources Inc.
The Rouyn Property, wholly-owned by the Company, contains four known gold deposits in the 6‑km‑long Augmitto-Astoria corridor situated on the western portion of the property. Two of the four deposits, Astoria and Augmitto, benefit from substantial underground infrastructure and have been the subject of technical reports that include resource estimates and that were filed in accordance with Regulation 43-101. In 2015, the Company expanded its exploration property portfolio by acquiring strategic base metal properties in prospective areas of the Abitibi Belt of Quebec and Ontario that feature an infrastructure favourable for mining development. The newly acquired base metal properties include the Scott Project, which bears important mineral resources (see the press release dated March 30, 2017) and on which a positive Preliminary Economic Assessment was completed.
For additional information on the Company, consult its website at www.yorbeauresources.com.
Forward-looking statements: Except for statement of historical fact, all statements in this news release, without limitation, regarding cash payments to be made by IAMGOLD and future plans and objectives are forward‑looking statements which involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate; actual results and future events could differ materially from those anticipated in such statements. Yorbeau disclaims any obligation to update such forward-looking statements, other than as required by applicable securities laws.