Stone Gold (TSXV: STG) is on a mission to consolidate the Batchewana Bay region of Ontario. The company this morning announced that it has entered two non-binding letters of intent to earn a 100% interest in certain claims within the region, referred to as the East Breccia and Tribag Mine properties.
Combined, the two properties represent 3,390 hectares of mineral claims in the region, which encompass numerous copper rich breccia bodies. Historical mining on the properties during the late 1960’s and early 1970’s pulled roughly 1.2 million tons of ore out of the ground, which on average graded 1.52% copper.
The breccia bodies are said to be a part of a series of known copper deposits that contain historic resources and numerous showings, which trend west southwest onto Stone Gold’s Coppercorp Property. Such showings include the Richards Breccia, Kincaid Breccia, Jogran Porphyry, and the historic Coppercorp Mine.
The copper found on the property is said to be accompanied by “significant values” of silver, rhenium, gold, tungsten, and molybdenum associated with the mineralized bodies that have not been properly investigated as of yet.
New techniques and technologies are to be implemented by Stone Gold on the property, which when combined with the historic databases from the new properties, will be used to generate a focused drill test program to delinate base and precious metals resource for further development.
“The consolidation of the Batchewana Bay greenstone belt is long overdue. We look forward to working with all stakeholders to explore for and develop natural resources in a mutually beneficial and sustainable manner. Additionally, the Company has staked 35 claim units linking the Coppercorp Property to the East Breccia and Tribag claims resulting for the first time in the creation of a contiguous claims package in the Batchewana Bay greenstone belt totalling approximately 21,400 hectares. This enlarged district scale Cu-Ag-W-Mo-Re-Co-Au property package represents an exciting opportunity to revive the Batchewana Bay mining district.”John Timmons, CEO of Stone Gold
The LOI’s entered into by the company will see the firm acquire a 100% interest in the East Breccia property over a period of 4 years in exchange for $165,000 in cash payments and the issuance of 800,000 common shares of the company. Exploration expenses of $0.3 million must be incurred, along with the granting of a 2% net smelter royalty.
The second arrangement meanwhile will see a total of $75,000 in cash paid to the vendors over a 4 year period, along with the issuance of 1.5 million common shares. Exploration expenses of $0.4 million also must be incurred by the company, along with the issuance of a 2% net smelter royalty for the property.
The LOI’s will remain in effect until February 26, 2021.
Stone Gold last traded at $0.16 on the TSX Venture.
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