Olympio Metals to acquire 80% of Bousquet gold project along Canada’s prolific Cadillac Break

Olympio Metals (ASX: OLY) has signed an option agreement with Canada’s Bullion Gold Resources to acquire up to 80% of the advanced Bousquet gold project in Quebec.

Olympio expects the acquisition to complement its Dufay gold-copper project situated 60 kilometres to the west.

The two will provide the company with a combined 20km strike exposure to highly prospective segments of the region’s renowned Cadillac Break.

Expanding exposure

Managing director Sean Delaney said the agreement presented Olympio with a significant opportunity to expand its exposure to one of the world’s premier gold-bearing structures.

“This project is strategically positioned between substantial gold deposits to the east and west, with numerous high-grade gold prospects featuring gold at surface and in drilling,” he said.

“The geological setting and mineralisation style closely resemble the nearby million-ounce O’Brien project, where high-grade gold zones are often associated with visible gold in quartz veining.”

Agreement terms

Under the terms of the eight-year option agreement, Olympio will pay Bullion an upfront cash consideration of C$100,000 plus C$50,000 worth of Olympio shares at the 15-day volume-weighted average price.

The company will make deferred payments including a further C$100,000 in cash and C$50,000 worth of Olympio shares issued at the 15-day VWAP within 12 months of the option agreement being executed and the same amounts again 24 months after execution.

Olympio will pay similar deferred consideration annually for the remaining years of the agreement, subject to it meeting expenditure commitments.

Olympio will also make performance payments to Bullion on the announcement of a maiden gold resource with a minimum grade of 1.4 grams per tonne, equating to C$1 per ounce from 250,001oz to 500,000oz and C$0.50/oz above 500,000oz.

Project location

The high-grade Bousquet project is 30km east of the Rouyn-Noranda gold-copper mining centre that houses the Horne and Granada mines.

It also sits 15km west of the Bousquet mining camp, which includes Agnico Eagle’s La Ronde mine (with more than 15 million ounces of gold) and Iamgold’s Westwood mine (2.4Moz gold).

The southern half of Bousquet includes several advanced gold prospects and numerous structural and geophysical targets that remain untested by drilling or modern exploration.

Historical drilling

The majority of drilling on the project took place before 1947 and all prospects remain underexplored.

Numerous high-grade intersections have been historically recorded across the project, particularly at the Paquin East prospect.

Paquin East returned an assay of 9m at 16.96g/t gold from 178.5m, including 1m at 129.25g/t from 185m.