Trillium Gold Mines (TSXV: TGM) has expanded its foothold in the Red Lake, Ontario district. The company this morning announced that it has signed an agreement to acquire a property contiguous to its Newman Todd property, the Rivard Property.
The property itself is an on-strike extension to the Newman Todd Property, with the property being located to the southwest of the current property. Previously, mining of gold has occurred on the property in the footwall of the Newman Todd zone. The property is approximately 90 hectares in size, and consists of one lease of six contiguous mineral claims.
Under the terms of the arrangement, Trillium will acquire a 100% stake in the property in exchange for $400,000 and 400,000 shares, to be issued over the course of 3.5 years. The property is also subject to a 1.5% net smelter return royalty. Half that royalty can be repurchased for $1.2 million in cash or shares.
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43-101 compliant drill results don’t presently exist for the property, however in 2006 E-Energy conducted work on the property, revealing 188.49 g/t gold (fire assay) in a cut channel, and 80.38 g/t gold (pulp and metallic) over 0.45 meters, which are deemed to be historic results. Previous exploration occurred on the property in the 1980’s, as well as the 30’s and 40’s as well.
Trillium Gold Mines last traded at $2.56 on the TSX Venture.
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