(Sharecast News) - Tertiary Minerals said on Thursday that Aurion Resources has mobilised two drill rigs to test various gold targets in Finland, including the Kaaresselkä Project in Finland, where Tertiary holds various royalty interests.
The AIM-traded firm described Kaaresselkä as an "advanced" gold exploration project, four kilometres south of Aurion's bonanza-grade Aamurusko Main gold discovery.
Kaaresselkä was originally discovered through base-of-till sampling by the Finnish Geological Survey (GTK) in 1987, and was drilled by both GTK and Tertiary with 127 historical drill holes completed, mostly to depths of less than 100 metres.
Drilling results included 11.01 grams of gold per tonne over 4.9 metres.
Aurion, which is backed by Kinross Gold and B2 Gold, will drill 2,000 metres at Kaaresselkä to confirm historical drilling, and to test the mineralised structure at depth and along strike, with results to be released once assays are available.
Tertiary sold the Kaaresselkä Project, together with the nearby Kiekerömaa Project, to Aurion in March 2017, but retains a number of royalty interests in the Kaaresselkä and Kiekerömaa projects.
It has a pre-production royalty of $1 per ounce gold following the definition of a NI 43-101 or equivalent code-compliant inferred mineral resource estimate on either project.
A pre-production royalty of $2 per ounce of gold would come in following the definition of a NI 43-101 or equivalent code-compliant indicated mineral resource estimate on either project.
The third pre-production royalty of $3 per ounce of gold would apply following the definition of a NI 43-101 or equivalent code-compliant measured mineral resource estimate on either project.
Finally, a net smelter returns royalty of 2% would apply on all future gold production from either property.
Aurion can purchase 50% of the net smelter royalty from Tertiary for $1m at any time before the start of commercial production on either project.
"I am delighted to see the restart of drilling at Kaaresselkä after such a long break," said executive chairman Patrick Cheetham.
"The recent high-grade gold discoveries at the nearby Aamurusko deposit and in the wider Risti Project area bode well for the future development of Kaaresselkä and the realisation of our royalty interests which I suspect have been overlooked by the market.
"We wish Aurion every success with their drilling."
At 1123 BST, shares in Tertiary Minerals were up 23.27% at 0.33p.
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