MacDonald Mines Exploration has signed a definitive agreement to acquire a 100% interest in the Jovan and Powerline Properties located within 40km of Sudbury, in Northern Ontario, Canada.
Jovan and Powerline Properties Highlights
Over 1,400 hectares of selective geological targets
Diversified exploration mineral target (gold, cobalt, copper, nickel, silver)
Substantial exploration potential
Two past-producing high-grade gold mines in close proximity
Mining friendly jurisdiction
Quentin Yarie, MacDonald’s President & CEO, commented: “These properties add to MacDonald’s portfolio of prospective projects and fits our model of brownfields with excellent infrastructure and with the potential for near-term success. While Sudbury is a huge mining centre and is known as Canada’s nickel capital, it is also an under-explored polymetallic gold district with similarities to the Idaho Cobalt Belt with IOCG-like mineralization. Our team was able to recognize the potential of this strategic land package. We have the technical expertise, experience and tools to advance exploration of the Properties. Our goal is to discover new mineralized zones and expand the known gold-cobalt-copper-nickel-silver showings and prospects on the Properties.”
About the Jovan and Powerline Properties
MacDonald Mines acquired a strategic land position covering polymetallic gold-copper-nickel-cobalt mineralization in the Davis, Street and Scadding Townships, close to Sudbury, Ontario. Together, the Properties are comprised of 79 claims covering 1,461 hectares and are accessible by logging roads that connect to major roads and highways.
The land package covers a mineralized system that formed multiple occurrences of polymetallic gold mineralization (with variable levels of cobalt, copper and nickel) in sedimentary rocks of the Huronian Supergroup intruded by the Nippissing Diabase. The overall geology of the Properties is similar to the geology of the Cobalt area.
On the Jovan Property, zones of mineralization are indicated by historic drilling results that contained 6.78 g/t gold, 0.77% copper, 0.16% nickel and 0.1% cobalt over 0.3 metres. Grab samples taken in previous exploration programs are also reported to contain over 1% cobalt, up to 20 g/t gold and up to 5.1% copper.
The potential for high-grade mineralization on the Jovan Property is also indicated by historic diamond drilling that was undertaken on patented land, located within the property, but not covered by this definitive agreement (AFRI 41I10NE0093).
Drilling intercepts reported on the patents include:
11.6 g/t gold over 8.7 metres, including 35.9 g/t gold over 2.44 metres, and
7.05 g/t gold over 9.91 metres including 12.18 g/t gold over 2.59 metres
There is a history of high-grade polymetallic gold mineralization in the area. Two historic mines are found in close proximity to MacDonald’s Properties – the Scadding gold mine, approximately 1 km from the Powerline Property boundary, produced 144,000 tons of ore at a grade of 7.43 g/t gold (OFR 5771). The Norstar Mine, located within 500 metres of the Jovan Property, produced 63,000 tons of ore at a grade of 7.2 g/t gold and 0.9% copper (OFR 5771). Grab samples from the Norstar waste pile, taken by the Ontario Geological Survey (OGS) indicate that elevated cobalt grades, ranging between 0.065 to 0.3%, also occur in the mineralized samples of the Norstar Mine (OFR 5771).
To acquire 100% interest in the Properties, MacDonald Mines agrees to:
Pay the seller $225,000 in cash and issue the equivalent of $180,000 of the Company’s common shares over the term of the option agreement (3 years);
Complete a total of $465,000 of eligible exploration expenditures on the Properties over the term of the option agreement;
Grant the seller a 2.5% Net Smelter Return royalty (“NSR”) on the Properties. The first 1% of the NSR can be bought back for $750,000 while a second 1%, can be bought back for $1,750,000.
The complete terms of the transaction are available on SEDAR under the Company’s profile.
Other Company Matters – Grant of Stock Options
The Board of Directors has granted an aggregate of 2,525,000 stock options to directors, employees and consultants of the Company. Each stock option is exercisable into one common share with an exercise price of $0.09 per common share, vests immediately upon grant and has an expiry 5 years from the date of grant.
Quentin Yarie, P Geo. is the qualified person responsible for preparing, supervising and approving the scientific and technical content of this news release.
Source: Company Press Release