A 3,000-metre diamond drill program is slated by Greenstrike Gold Co rp. on the Fifteen Mile Stream gold property owned by Pan East Resources. The goal of the program is to expand the total in situ geological probable and possible reserves of 214,000 tons averaging 0.22 oz gold per ton.
Gold occurs within inter-bedded quartz veins and has gold-bearing graphite and sulphide-rich slates in both saddle reef and shear zones within Cambrian slates and greywackes, the company says. The geological setting is similar to the Seabright Resources’ Beaverdam deposit located about 11 km to the southwest and on the same geological structure.
Greenstrike will spend $500,000 on Pan East’s Fifteen Mile Stream property and act as operator.
Greenstrike will earn a 5% interest in Pan East’s Nova Scotia properties, including the Fifteen Mile Stream property, which can be exchanged for 715,000 common shares of Pan East, which would represent 17% of the then issued common shares.
Greenstrike will also be issued 200,000 warrants of Pan East, entitling Greenstrike to purchase 200,000 common shares of Pan East for a period of one year, at a price of $1 per share, or 200,000 flow-through shares at $1.25 per share.
The above is subject to regulatory approval.
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