Centerra Gold Inc. decided not to continue drilling on Erris Resources PLC's Brännberg gold project in northern Sweden after discovering that the site's mineralized system could not host a deposit of at least 1 million ounces of gold.
Highlights from recent drilling, which covered 14 holes totaling 2,681.7 meters, included 1.65 meters grading 8.14 g/t of gold, 0.67% arsenic and 0.01% copper from a depth of 52.90 meters.
As it reclaims full ownership of the project, Erris said Dec. 13 that it will undertake follow-up work to determine if the project can be advanced on its own or with a junior gold developer.
Centerra also dropped Erris' Käringberget gold project as recent drilling failed to intersect significant mineralization.
Centerra in January nominated Brännberg as an elected designated project area under a 2016 agreement, which will continue and has expanded into Finland despite the developments.
Under the terms, Centerra has committed to spend US$250,000 on generative exploration work in 2019, with the option to elect individual projects to earn a 70% interest by spending US$3 million.