Last checked at 
(Sharecast News) - Mineral exploration and development business Fulcrum Metals has agreed to acquire the Sylvanite Gold Tailings project, located in Kirkland Lake, Canada.
Fulcrum said Sylvanite, an ex-producing mine, was strategically located 3.0km from its Teck-Hughes Gold Tailings project, the company's first tailings investment, and "significantly expands" its footprint in the Kirkland Lake Gold Camp, one of the most productive gold camps in Canada.
Sylvanite was also said to be the fourth largest gold-producing mine in the Kirkland Lake gold camp, having milled 4.58m tonnes of ore and produced 1.67m ounces between 1927 and 1961.
Chief executive Ryan See said: "Historic results confirm that Sylvanite has the potential to become a viable project, particularly in light of the current gold spot price hovering around USD $2,200 per ounce, whilst our estimated acquisition cost is less than USD $3.80 per ounce.
"Investing in these tailings projects presents an exciting opportunity for Fulcrum as it brings low discovery risk assets in established mining camps into our portfolio which are less capital-intensive to advance to production and cash flow. This approach not only conserves cash resources but offers significant upside potential to Fulcrum shareholders."
As of 1015 BST, Fulcrum shares were down 0.66% at 15.15p.
Reporting by Iain Gilbert at Sharecast.com
