Gold explorer Barrian Mining Corp. (TSXV: BARI) has completed its initial public offering, and is now listed for trading on the TSX Venture Exchange under the ticker symbol ‘BARI.’.
The company has wrapped up an earn-in agreement with Allegiant Gold (TSXV: AUAU; US-OTC: AUXXF) to acquire up to a 75% interest in the latter’s Bolo gold project near Tonopah, Nevada. Bolo will be Barrian’s flagship asset moving forward.
The 13.5 sq. km land package is 90 km north east of Tonopah and near Kinross Gold’s Round Mountain gold mine, which has produced more than 10 million oz. gold.
Bolo’s previous owners spent US$3.3 million exploring the property. Surface samples at Bolo have graded as high as 8.6 grams gold per tonne along the project’s 2.7 km Mine fault and 4.7 grams gold along its 2.2 km East fault.
Past owners drilled more than 12,200 metres across 67 reverse circulation holes at Bolo. Highlights include 133 metres grading 1.28 grams gold from surface including 30.5 metres at 3.24 grams gold, 90 metres at 1 gram gold from surface and 58 metres at 41.13 grams silver from surface, including 7.6 metres at 220 grams silver.
“We think this asset has a lot of potential,” Barrian CEO Max Sali says. “We’re very excited about the property, and very excited to drill this asset in early June.”
To earn a 50.01% interest in the property, Barrian must make staged exploration expenditures totaling US$2.65 million from 2019 to 2022, broken down into US$500,000 in 2019, US$750,000 in 2020, US$1.25 million in 2021 and US$1.5 million in 2022. If the company wants to earn a 75% interest in Bolo, it must spend US$2 million in both 2023 and 2024. The company can accelerate its spending at any time for a faster earn-in.
The company plans to complete a $500,000 work program at Bolo in the first half of 2019, including 1,700 metres of drilling to expand current targets and add new ones.
“All the drill holes from the previous company were drilled without any modern geophysical studies,” Sali says. “Modern geophysical surveying needs to be carried out first to get a better understanding of the target areas.”
After completing ground IP and magnetic geophysical surveys, Barrian will fly drones for imagery analysis and take grid soil and rock geochemical samples across the project’s anomalous areas. It will use that data to complete geological modelling and finalize diamond drill targets for the second half of 2019.
The company wants to define the extent of mineralization at, and possibly connect, three of the project’s zones — Uncle Sam, North Fault and South Fault.
“We are aiming to prove up continuity between all three of them and take the modelling and start to put something together for a National Instrument 43-101 compliant resource estimate,” says Sali.
The company will base its 2020 campaign on this year’s results. It intends to drill 2,900 metres in this second phase of work and that will build towards the tabling of a maiden resource estimate by 2021.
“My professional geologist Kris Raffle, who is a principal at Apex Geosciences, did most of Gold Standard Ventures’ work in Nevada so he has a very solid geological understanding of Nevada,” says Sali. “I’m leveraging him to come in and do a work program for us and pick out the drill targets.”
Barrian’s other gold project, the Sleeper, is located in New Mexico. The Sleeper has a historical, non-NI-43-101 compliant resource totaling 767,000 tonnes grading 320 grams silver and 5.1 grams gold. Formerly called Mogollon, the Sleeper property covers 72 km of strike length, although past exploration and development have focused on only 4.8 km of the property.
“The district that this asset is in has had historically production of about 327,000 ounces and gold and 15.7 million ounces of silver between 1905 and 1942 and this was originally going to be our flagship. The reason we renamed it the Sleeper is because it’s kind of like one of those Volkswagen Golfs you see on the drag racetrack with about 1,000 horsepower in it,” explains Sali. “It looks pretty plain on the outside and then it beats everything on the track.”
“No one’s really touched this property since the 1980s,” says Sali. “There was a little bit of work by Columbus — which is now Allegiant — in 2010, but not enough to really validate this asset.”
Barrian must issue $1 million worth in stock to Allegiant over three years to earn a 100% interest in the project.
“We think that we can do some data compiling and go in there and drill some new targets,” says Sali. “It’s a very interesting asset because this is something other people have put aside for a long time, but it seems like under the hood there’s something there.”
Now that it is trading, Barrian has a market capitalization of $7.2 million and last traded at 18c per share . It has half a million dollars in cash, and management and insiders own 23% of the company.
— The preceding Joint-Venture Article is PROMOTED CONTENT sponsored by Barrian Mining Corp., and compiled in cooperation with The Northern Miner. Visit www.barrianmining.com for more information.