Shares of Canadian-based junior explorer Barsele Minerals Corp.’s (CVE:BME) rose nearly 3% on Tuesday after Agnico Eagle Mines Ltd. (NYSE:AEM) said it had prepared an updated mineral resource estimate for Barsele gold deposit within the Barsele gold-volcanogenic-massive-sulphide project area in Vasterbottens Lan, northern Sweden.
Exploration and mineral resource definition at the Barsele project has been managed by joint venture partner Agnico Eagle. Ownership in the Barsele project is 55% Agnico Eagle and 45% Barsele. Agnico Eagle can earn an additional 15% in the Barsele project through the completion of a prefeasibility study.
The Barsele property is known to contain intrusive hosted gold mineralization that appears to be similar to Agnico Eagle’s Goldex deposit in Quebec. During 2016, a total of 85 diamond drill holes totalling 33,477 metres were drilled by Agnico Eagle.
Drilling focused on verifying, defining and expanding the mineral resources within and along the Central, Avan and Skirasen zones that are now interpreted to be part of the same mineralized system that extends over 2.6 kilometres of strike length and to a depth of 600 metres, and still open in all directions. These contiguous mineralized zones occur within a granodiorite host that ranges in width from 200 metres to 500 metres and is traceable over a strike length exceeding eight kilometres. Gold is generally associated with arsenopyrite and low base metal content, but also occurs as native metal locally.
The Barsele project is located on the western end of the Proterozoic Skellefte trend, a prolific volcanogenic massive sulphide deposit belt, where it intersects with the gold line in northern Sweden. Both polymetallic deposits and intrusive-hosted orogenic gold deposits are present in this region and on the property. Current and past producers in the region include Boliden, Kristineberg, Bjorkdal, Svartliden and Storliden.
Barsele’s main property is the Barsele gold project in Vasterbottens Lan, Sweden, a joint venture with Agnico Eagle Mines.
Barsele shares were up 2.9% at C$1.06 on Tuesday.
Story by ProactiveInvestors