Newcrest expands footprint in Chile with two gold deals

Cecilia Jamasmie | December 11, 2018 | 9:58 am Base Metals Precious Metals Canada Latin America Copper Gold

Newcrest expands footprint in Chile through two gold deals

Newcrest wants part of the Gorbea projects, in Chile, which fellow major Yamana Gold previously explored in a joint venture with Mirasol Mining. (Image courtesy of Mirasol Mining.)

Australian gold miner Newcrest Mining (ASX:NMC) is betting big on Chile’s geological gold potential by closing two deals with exploration juniors in the South American country, the world’s top copper producer.

The Melbourne-based company kicked off the week by signing an option agreement with Canada’s Cornerstone Capital (TSX-V:CGP), which could result in the gold miner acquiring up to a 75% interest in the Ontario-based firm’s Miocene properties.

Newcrest is partnering up with Canada’s Cornerstone Capital Resources and Mirasol Mining.

Those gold-silver and porphyry gold-copper deposits are located in Chile’s northern Atacama and Antofagasta regions, in the country’s Maricunga gold belt.

Newcrest has also signed a similar deal with Mirasol Mining (TSX-V:MRZ), owner of the Gorbea projects, which it previously explored in a joint venture with Yamana Gold.

The company, already engaged in a joint venture with Mirasol, will have the right to acquire up to 75% of Gorbea by completing a series of exploration and development milestones.

Newcrest has committed to spending at least $4 million and to completing a minimum of 3,000 metres of drilling over an initial 18-month period.

Chile is not the only South American country where Newcrest is looking for new projects. In February it grabbed a 14% stake in Lundin Gold, which expects to bring its Fruta del Norte gold and silver mine in southeastern Ecuador into production by the end of 2019.