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DECEMBER 2015 • E&MJ; 31 www.e-mj.com Rio Tinto Mining and Exploration has entered into an earn-in and joint venture agreement with Reservoir Minerals cover- ing Reservoir's Tilva project in the Timok magmatic complex, Serbia. Reservoir's recent Cukaru Peki discovery has demon- strated the project's excellent exploration potential for large-scale copper-gold deposits. Rio Tinto has the option to earn up to a 75% interest in stages by sole funding project expenditures of up to $75 million. Under stage 1 of the agreement, if Rio Tinto elects to incur total project expen- ditures of $7 million by November 30, 2019, it will earn a 51% interest in the project. If it incurs additional expendi- tures of $10 million within three years of the Stage 1 vesting date, it will earn an additional 14% interest in the project (stage 2). If Rio Tinto incurs further project expenditures of $58 million in connec- tion with the preparation of a pre-fea- sibility study by the later of the fourth anniversary of the stage 2 vesting date or November 30, 2025, it will earn an additional 10% interest in the Tilva project, resulting in its total interest being 75%. Rio Tinto has also agreed to minimum project expenditures of $3.1 million by November 30, 2017, including reim- bursement of costs incurred by Reservoir on a drilling program that it began on the Tilva project in September, up to a maxi- mum of $500,000, which shall consti- tute part of its stage 1 earn-in project expenditures. A management committee will be formed comprised of two representatives each from Rio Tinto and Reservoir. Reservoir will be the initial manager of the project until such time as Rio Tinto exercises its right to assume the role of manager. The relationship of Reservoir and Rio Tinto will initially be structured as an unincorporated joint venture. Upon notice of Rio Tinto's intent to earn the stage 2 interest, the parties will form an incorporated joint venture and enter into a more detailed joint-venture agreement. ( www.reservoirminerals.com ) Exploration Briefs Agnico Eagle and Barsele Minerals have approved a new $3.25 million exploration program on their Barsele gold project in Västerbottens Län, Sweden, approximate- ly 600 km north of Stockholm. The pro- ject is owned 55% by Agnico Eagle and 45% by Barsele. The exploration program will include about 12,300 m of diamond drilling using two rigs around the existing resource area; an expansion to the regional basal glacial till sampling program; trenching and structural geology mapping in the Central Zone; hyperspectral infrared scanning of drill core from the Central Zone; geophys- ical parameter downhole logging in the Central and Norra Zones; metallurgical testwork; environmental studies; and local and regional hydrogeological studies. Service provider agreements have been signed with Golder Associates Sweden regarding environmental studies and with GeoVista of Luleå, Sweden, regarding geo- physical data compilation. Hyperspectral studies are being conducted by TerraCore International together with Specim. ( www.barseleminerals.com ) Nevada Copper reported positive results from diamond drilling on the East under- ground deposit at its Pumpkin Hollow project near Yerington, Nevada. The first phase of drilling was completed from two underground stations on the 1,900-ft production haulage level. Several holes had significant intervals of more than 2.5% copper, including one intercept of 32.1 m grading 2.55% copper. Ten development holes and one shaft geotechnical hole were drilled for a total of 2,965 m. The program focused on enhanc- ing the mineralized zones within the cur- rent mineral reserve, especially in areas planned for mining in the early years. Additional detailed geotechnical data were also collected for refining the mine designs. A second phase of follow-up drilling will be planned for 2016 once data compilation is completed. Nevada Copper Vice President Project Development and Exploration Greg French commented, "These are the first under- ground holes drilled at Pumpkin Hollow, and we gained considerable knowledge regard- ing geotechnical and drilling conditions that will be useful in our next phase of drilling." ( www.nevadacopper.com ) Erdene Resource Development has initiat- ed the first drill program and geophysical surveys on its wholly owned Bayan Khundii gold project in southwest Mongolia, 15 km south of its flagship Altan Nar gold-poly- metallic project. The drilling is designed to test the near-surface, down-dip extension of multiple, high-grade gold zones discov- ered by the company in the third quarter of 2015 during an initial surface sampling and trenching program. The trenching identified four separate zones, 10 to 30 m wide, averaging 2.3 to 2.9 g/mt gold, including up to 1 m of 55 g/mt gold, over a 300-m strike. The current drilling is targeting high-grade extensions of this mineralization at shallow depths. Erdene has also initiated a magnetic geo- physical survey over the larger 1.4-km-long Bayan Khundii target area and gradient array induced polarization and dipole- dipole IP geophysical surveys over portions of the Bayan Khundii Main Zone. ( www.erdene.com ) Aureus Mining has agreed to acquire three exploration licenses near its New Liberty gold mine in Liberia from Sarama Resources. Following completion of the acquisition, Aureus will have 100% own- ership of the licenses, and the company's total land portfolio will increase to 1,683 km 2 from 1,402 km 2 . Exploration work undertaken by Sarama has defined a 15-km-long gold corridor on the licenses, highlighted by gold-in-soil anomalies and extensive arti- sanal mining, all within a 15-km radius of the New Liberty mine on average. Sarama has also completed airborne geo- physics, ground geochemistry, and 1,600 m of reconnaissance drilling in 15 holes, while expending a total of $1.8 million in exploration on the property. Gold mineralization intersected by the drilling includes intercepts of 3.9 g/mt over 7.5 m from 9.3 m and 2.3 g/mt over 5 m from 28 m down the hole. ( www.aureaus-mining.com ) REGIONAL NEWS - EXPLORATION ROUNDUP Rio Tinto Earning Into Reservoir's Serbian Copper-Gold Project