Manitou Gold has announced the acquisition of the Dog Lake Property, which is located within the Goudreau-Localsh deformation zone (the GLDZ).
The Dog Lake Property is comprised of 82 mining claim units covering a total area of over 3,800 acres along the northern domain of the GLDZ. The property covers a number of historic gold showings associated with mineralized shear zones. The shear zones are part of the northern domain of the GLDZ, which, to the west, hosts Alamos’ Island Gold mine and Argonaut Gold’s (Prodigy Gold) Magino deposit, along with several past-producing mines, including the Kremzar, Edwards and Cline mines, as well as Manitou Gold’s Goudreau Patents property.
Grab samples collected on the property by the Ontario Geological Survey in 1983 returned assays ranging between 3.4 and 74.6 g/t gold. More recent prospecting led to the discovery of a new high-grade gold showing on the Property where a grab sample returned an assay of 29.2 g/t gold. No follow-up work has been completed on this showing to date.
In consideration for the 100% purchase of the Dog Lake Property, Manitou Gold will issue 800,000 common shares of the Company and pay the current vendors $5,000. There is an underlying 2.0% NSR payable to the underlying vendor.
Manitou has agreed with the underlying vendor, who holds the NSR, to allow for the purchase by Manitou Gold of half (1.0%) of the underlying 2% NSR at any time for cash consideration of $1,000,000. Closing Dog Lake Property purchase is subject to Board approval of the vendors and of Manitou Gold, as well as to TSXV approval.
Manitou Gold’s current property portfolio along the GLDZ now includes the Goudreau Patents, which consist of 160 acres of surface and mining rights patented lands and Manitou Gold’s recently acquired 15,900 acres of contiguous lands comprised of the Rockstar, Midas and Dog Lake Properties. These properties cover a strike length of over 17 km along the eastern portion of the GLDZ.
In recent years, the GLDZ has seen significant new investment in gold exploration and development activity. The western half of the GLDZ is dominated by Argonaut Gold’s Magino advanced development project and Alamos Gold Inc.’s Island Gold Mine property, that latter of which was acquired by Alamos last November through its takeover of Richmont Mines. Immediately to the east of the Alamos property are the past producing Edwards and Cline Mines, respectively. Manitou Gold’s Goudreau Patents property is located just to the east of the Edwards and Cline Mines.
Manitou will continue with prospecting and mapping and will also begin mechanical stripping and channel sampling on its GLDZ properties throughout the fall. Further results will be announced as they become available.
Source: Company Press Release