Precipitate Gold (TSXV: PRG) announced on Wednesday that Barrick (NYSE: GOLD) has begun exploration and fieldwork at Precipitate’s 100% owned Pueblo Grande project in the Dominican Republic.
The gold-copper project is located adjacent to Barrick’s Pueblo Viejo, the largest active gold mining operation in Latin America.
Barrick has begun review and validation of historic drilling results and geochemical and geophysical data from work conducted by Precipitate and prior operators.
Initial work will concentrate on the project’s Lithocap Zone, located west of Barrick’s Pueblo Viejo mining pits and that was the primary focus of Precipitate’s exploration work prior to execution of the earn-in agreement.
Barrick plans an initial 2,500 metres of exploration drilling in the Lithocap Zone.
“We’re specifically encouraged by Barrick’s initial focus within the Lithocap Zone where Precipitate had previously identified multiple prospective targets,” Jeffrey Wilson, Precipitate’s CEO said in the media release.
As part of the agreement, the world’s second-largest gold producer will have to invest a minimum of $10 million in exploration and deliver a pre-feasibility study within six years of the agreement.
Midday Wednesday, Precipitate’s stock was up 8.8% on the TSXV. The company has a C$19.5 million market capitalization.