The Agreements are considered significant steps in strengthening Trillium Gold’s strategic objective to consolidate the Confederation belt and Birch-Uchi greenstone belts, positioning it as the most dominant exploration company in the Red Lake Mining District
Trillium Gold signs purchase option agreements extending its dominant Confederation belt land position in Red Lake, Ontario. (Credit: Khusen Rustamov from Pixabay)
Trillium Gold Mines Inc. (TSXV:TGM, OTCQX:TGLDF, FRA:0702) (“Trillium Gold” or the “Company”) is pleased to announce that it has signed two purchase option agreements in respect of the Uchi Gold Project (the “Uchi Gold Agreement”) and the Satterly Gold Project, (the “Satterly Gold Agreement”, together with the Uchi Gold Agreement, the “Agreements”), to acquire a 100% undivided interest in the respective areas within the Confederation greenstone belt.
The Agreements are considered significant steps in strengthening Trillium Gold’s strategic objective to consolidate the Confederation belt and Birch-Uchi greenstone belts, positioning it as the most dominant exploration company in the Red Lake Mining District.
The Uchi Gold Agreement comprises one hundred eighty-two (182) unpatented mining claims covering 4,189 hectares immediately adjacent to and adjoining the Company’s Confederation belt land position. The Satterly Gold Agreement comprises five (5) unpatented mining claims covering 565 hectares adjoining the Company’s Satterly Lake properties located to the northeast of the Confederation belt land package.
Uchi Gold Agreement
The Uchi gold properties comprise the contiguous and complementary Lost Bay, Fly East and Leg Lake mining claims that extend the Company’s existing Confederation belt property assemblage to the northeast towards the Satterly Lake property, and add to Trillium’s already dominant position over 100km of favourable structure on trend with Kinross Gold’s Dixie deposit (see Figures 1 & 2 below).
The Fly East and Leg Lake properties have seen limited reconnaissance type exploration in the past and were primarily explored for base metals in the 1970’s and 1980’s, which comprised only eight drill holes over the properties. Platinum group mineralization was explored for in the early 2000’s with results of up to 1 g/t PGMs and 1.8% copper.(1) Some minor gold exploration had taken place on Fly East but only as a carry-over from the Bobjo Mine property to the north and the Uchi Mine to the east. Both properties contain favourable structures and lithologies for both gold and base metals.
The Lost Bay property is located in the vicinity of the historic Bobjo Mine which produced 362 ounces of gold in 1929. The Lost Bay property contains NE-SW trending felsic and mafic volcanic rocks with gold mineralization appearing to follow a preferred orientation trending west-northwest, corresponding to the orientation of the D2 deformation within the Red Lake District. While some gold exploration was undertaken during the mid-1930’s along with base metals targeting South Bay Mine analogues, these D2 structures were not considered to be important in the base metal context and will be a key exploration strategy for Trillium Gold. This property is prospective for gold, base metals (copper/zinc) and PGMs.
Satterly Gold Agreement
The Satterly Lake properties comprise twenty-eight (28) claim cells in five (5) claims covering 565 hectares. The area has seen sporadic exploration from the 1930’s with renewed gold exploration in the 1990’s and again from 2009. The area is underlain by a variety of rock types including mafic volcanics and intrusives, sediments and lamprophyre dykes. Cominco performed a local basal till sampling program in the northeast corner of the property, receiving a number of anomalous results.
Terms of Agreements
Uchi Gold Agreement: Pursuant to the Uchi Gold Agreement, in order to keep the option thereunder in good standing, Trillium Gold is required to pay an aggregate consideration of $115,000 over a period of three years, issue an aggregate 300,000 common shares, and grant to the vendors a 2.0% net smelter returns royalty on each purchased asset. The Company has the right to repurchase 50% of each royalty (being 1.0%) by paying the holders an aggregate amount equal to $1,000,000.
Satterly Gold Agreement: Pursuant to the Satterly Gold Agreement, in order to keep the option thereunder in good standing, Trillium Gold is required to pay an aggregate consideration of $63,500 over a period of three years, issue an aggregate 100,000 common shares, and grant to the vendors a 1.5% net smelter returns royalty on each purchased asset. The Company has the right to repurchase 50% of each royalty (being 0.75%) by paying the holders an aggregate amount equal to $500,000.
The common shares issuable pursuant to the foregoing Agreements will be subject to a four month hold period pursuant to applicable securities laws. The completion of the transactions contemplated by the Agreements is subject to TSXV approval.
Source: Company Press Release