Goldstrike Resources Ltd. Jan. 24 reported that Newmont Mining Corp. has ended its option to earn an interest in Goldstrike's Plateau gold property in the Yukon.

Under an agreement struck with Goldstrike early in 2017, Newmont had the option to earn up to a 75 percent stake in Plateau by making cash payments to Goldstrike, investing in exploration at Plateau and completing a feasibility study for the gold project.

Over the first two years of the option, Newmont invested heavily on district-scale exploration focused on understanding and modeling the controls of the high-grade gold mineralization Goldstrike had previously identified at Plateau.

This work included a 7,753-meter drill program carried out in 2018

Goldbank, a large prospect generated with the help of Newmont's proprietary exploration technologies, was among the targets tested.

Multiple grab samples collected from Goldbank in 2017 contained high-grade gold, including one sample that returned 287.1 grams (8.39 ounces) per metric ton gold and another with 639.75 g/t (18.66 oz/t) gold. While grab samples are selective by nature, these bonanza grade samples indicate the potential at Goldbank.

Beyond Goldbank, the 26 holes drilled in 2018 targeted several targets across a 70-kilometer- (43 miles) long trend at Plateau.

According to Goldstrike, the best results were encountered at Gold Dome, a target about 17 kilometers (10.5 miles) southwest of Goldstack.

One hole from Newmont's drilling at Gold Dome cut 0.85 meters of 7.17 g/t gold.

Previous drilling by Goldstrike encountered 9.03 meters averaging 7.6 g/t gold at Gold Dome.

Goldstrike said the zones of anomalous gold mineralization encountered during the 2018 program do not explain the abundant gold mineralization that has been identified on the surface at Plateau.

In addition to drilling, the 2018 program at Plateau included the collection of 310 rock samples; 1,377 soil samples; 5,000 meters of ground geophysical surveying; and extensive property-wide mapping and prospecting.

In December, Newmont made a mandatory US$1 million payment to Goldstrike but has since decided not to pursue its option at Plateau.

"We would like to thank Newmont for its investment and collaboration in sharing its technologies and knowledge with Goldstrike over the past two years," said Goldstrike Resources President and CEO Terrence King. "Although the Plateau project currently may not meet the corporate thresholds at Newmont, the extensive data base indicates this district-scale system remains a highly prospective exploration asset in a top tier jurisdiction. With plenty of working capital and no debt, Goldstrike remains well positioned for the future."

In the meantime, Newmont is focused on a recently announced deal to merge with Goldcorp to create the world's largest gold mining company.

–SHANE LASLEY