The NWT property includes the western extension of the Moretti deformation zone which, in addition to the Black Lake property acquired earlier, provides Duncastle with over 2.4km of strike on the Moretti system where historic bulk samples averaged 14.1 and 18.6 g/t Au and multiple historical geological samples ranged up to 1,212 g/t Au (historic data not independently verified by Duncastle).
This strategic acquisition re-unites the historic Black Lake project and adds valuable targets and known mineralized zones, bringing the combined project to about 7,968 hectares (over 79 square kilometers).
The consolidated Black Lake-Drayton land position now includes over 25km of largely untested strike on the Sioux Lookout deformation zone in the rapidly developing Wabigoon Greenstone belt which is south of and parallel to the Birch-Uchi belt, a world-class archean greenstone belt that is home to some of the world’s most profitable gold producers including Goldcorp’s Red Lake mines, plus more recent high-grade developments such as Rubicon’s Phoenix Gold Project.
Despite its proximity to the Red Lake area and the Birch-Uchi belt, the Wabigoon greenstone belt remained underexplored into the 1990s due to persistent ground cover, limited road access, and a resulting lack of large discoveries.
In the past 10 years however, new roads and improved exploration techniques have led to the delineation of over 10 million ounces of gold in discoveries by Rainy River Resources (now New Gold), Bayfield Ventures, Treasury Metals, Manitou Gold and Tamaka Gold, among others.
Duncastle President Michael Rowley commented "We are very pleased to have been able to re-assemble the historic Black Lake property by acquiring the NWT ground. Our recent compilation work from the existing database of over 120 drill holes shows excellent potential for high-grade gold mineralization in the more than 2.4km strike at Moretti, and also within the broader +25km strike that we have in total at the consolidated Black Lake-Drayton project."
Planned exploration on the property for 2014 includes an initial short surface program in thirteen different target areas, including the Belekeno and the 75’er prospects located on the newly acquired NWT ground followed by a 1,500m diamond drill program which will initially target the Moretti zone before moving to other drilling planned at several other priority targets including the Belekeno, Dragfold/Emerald, Holbrook and Hornet prospects.
Under the terms of the agreement Duncastle can acquire 100% of the right and title to five claims covering 384 hectares by completing cash payments of $50,000, issuing 1,250,000 million shares and completing $1.25 million in exploration work over six years. The vendors retain a 3% net smelter royalty with a buy-down to 2% for $1 million. The agreement, and the issuance of shares per the agreement, are subject to acceptance of the TSX Venture Exchange.
