North of the Arctic Circle, near the mineral rich Sirkka Line Dragon Mining maintains an extensive tenement holding, which includes the Hanhimaa Gold Project.
Dragon Mining and Agnico Eagle Mines Limited (NYSE:AEM)(TSX:AEM) (“Agnico Eagle”) executed the Hanhimaa Earn-In Agreement (“Agreement”) in 2013, whereby Agnico Eagle could earn up to 70% interest in the Hanhimaa Gold Project in northern Finland, with the staged expenditure of €9 million. Amendments to the Agreement were agreed by the parties in late 2013 and early 2015.
Under the amended terms of the Agreement, Agnico Eagle can expend €5 million within 6 years of the commencement date (15 February 2013) to earn a 51% interest in the Hanhimaa Gold Project. Upon earning the 51% interest Agnico Eagle can then elect to earn an additional 19% by expending a further €4 million within 3 years of completion of the Stage 1 earn-in period. Agnico Eagle will be the manager during the earn-in and can withdraw at any time, having already achieved the minimum expenditure level of €1.5 million.
The Hanhimaa Gold Project covers a portion of the highly prospective Central Lapland Greenstone Belt. The near contiguous tenement holding principally encompasses the 20 kilometre long north-south trending Hanhimaa Shear Zone, 10 kilometres west of Agnico Eagles’ Kittilä Gold Mine.
Agnico Eagle initially completed three phases of drilling totaling 41 diamond core holes (10,477 metres) targeting the Kiimalaki, Kellolaki, Kiimakuusikko, Väli-kiima, Jaukkara and Rottamalaki areas. Subsequent to the initial drilling programs Agnico Eagle have also completed a Titan24 geophysical survey across three profiles that were designed to intersect the Hanhimaa Shear Zone, trenching and geochemical sampling in the very northern part of the project area and trenching in the Kiimakuusikko - Väli-kiima area. Diamond core drilling has also resumed with holes completed on the Vuotso structural target and in the Kiimakuusikko - Väli-kiima area testing the identified Titan24 geophysical anomalies.
Hanhimaa Gold Project site