CaribGold acquired the property, which is subject to a 2% net smelter return royalty, by spending $25,000 and issuing 600,000 shares. It lies in the andesite and basalt volcanics of the Wabassee group of relatively horizontal volcanic units overlying the favourable Watson group volcanics in the nose of the Galinee anticline.
Caribgold plans a program of deep-penetration induced-polarization surveying to explore for conductive disseminated and stringer-type mineralization associated with deeper volcanogenic massive-sulphide deposits in the shallow-plunging Watson group volcanics.
At Noranda’s nearby Perseverance project, the total indicated and inferred resources are pegged at 5 million tonnes grading 16.8% zinc and 1.3% copper, plus 34 grams silver and 0.4 gram gold per tonne. The deposit comprises at least three distinct zones — Equinox, Perseverance and Perseverance West. Mineralization lies at depths of less than 250 metres.
Noranda plans to conduct a feasibility study on Perseverance by the end of next year’s first quarter. The company is also exploring along the tuffite zone, which hosts the three main deposits at Perseverance, in the expectation that it extends over a much wider area than previously thought.
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