Exploration will resume on the Newmont Goldcorp-funded Lyra project, after a force majeure condition relating to security in Colombia has been lifted, TSX-V-listed Outcrop Gold reported on Wednesday.
Lyra lies between Continental Gold’s Buritica and Orosur Mining’s Anza projects and Outcrop Gold believes the project captures the ‘Buritica trend’, which is a 30 km extension of the Tonusco fault system that bisects the Buritica vein system and continues to the south to Anza.
Outcrop Gold thinks that the Tonusco fault is the source of the gold and base metal-bearing fluids that formed the Buritica veins in second order dilational zones that splay off the Tonusco.
Newmont made a large strategic investment in Continental Gold and actively funds Anza exploration under an agreement with Orosur.
“Outcrop Gold is happy to partner with Newmont Goldcorp on the deliberate strategy Newmont Goldcorp has used effectively around the world – where first a world-class discovery (Buritica) is made, and then followed up by a Newmont Goldcorp capture of the discovery-related mineral trend (Lyra), and then potentially another similar discovery,” Outcrop Gold CEO Joseph Hebert said in a statement.
Outcrop Gold follows the prospect generator joint venture (JV) business model, where it acquires high-quality exploration targets and then attracts funding from JV partners.
“Newmont Goldcorp BLEG sampling efficiency in identifying prospective ground is probably without equal in any other company. This is truly a case where a junior company benefits from the expertise in a larger partner, a benefit of the prospect generator business model,” Hebert said about its partnership with Newmont on Lyra.