The project currently is operated under a 50/50 joint venture between Golden Dory and Metals Creek with Metals Creek as project operator.

The acquisition will increase Golden Dory ownership from 50% to 70% stake in the Gabbro Lake Iron Ore property located in the prolific Labrador Trough.

Under the terms of the agreement, Golden Dory will become operator and can increase its property stake by issuing 1.5 million shares of the company to Metals Creek and by investing a $500,000 exploration programme in 2012, which will include a minimum of 1,200m of diamond drilling.

It also can earn an additional 10% stake by issuing an additional 2.5 million shares to Metals Creek and by providing a NI 43-101 compliant resource.

Metals Creek Resources Corp president and chief executive officer Alexander Stares said, "Metals Creek will still maintain a substantial interest in this excellent iron ore prospect which is located in one of the leading Iron Ore districts of the world. Metals Creek will continue to focus its resources on the Ogden gold project in the Timmins Mining Camp as well as MEK’s other gold projects"

The drilling program was carried out in 2011, conducted by the JV partners including airborne geophysics which outlined four discreet magnetic high target areas, Anomalies A to D.

Assay results ranged from 11.42% Fe2O3 to 75.38% Fe2O3 with 79% of the samples assaying greater than 25% Fe2O3 and 62% of the samples over 40% Fe2O3.

 

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