Under an agreement between High River Gold Mines (TSE) and Manitoba mining consultant Bruce Dunlop, High River can acquire two properties next to its Snow Lake gold project in northern Manitoba.
One of the properties, which comprises 10 claims, contains 13 gold zones. Two of the zones — No. 3 and Birch — contain 819,000 tons grading 0.268 oz. gold per ton above the 1,100-ft. level. Both zones are open at depth and geologically similar to Snow Lake.
To earn its interest, the company will pay advance royalties of $100,000 upon signing, $50,000 after 12 months and 24 months respectively, and $50,000 every six months thereafter.
Upon exercising its option, High River will acquire the Dunlop claims, as well as Dunlop’s 10% net profits interest in the Skye claims, which contain part of the Snow Lake deposit. In return, Dunlop will receive 500,000 High River shares and a 1.38% net smelter return (NSR) royalty on the Snow Lake property and the adjacent 10 claims (together known as the Combined property). The second property contains 30 claims and is directly east and west of the Combined property. High River will pay $25,000 for the right to investigate this property over the next 12 months and has the option, upon further payments, to continue exploring for several years. If exploration results prove favorable, High River can acquire the property for a 3.5% NSR and 500,000 High River shares.
High River President David Mosher told The Northern Miner this is an important acquisition for the company since it “turns Snow Lake into a regional play, rather than a mine play.”
High River is deep-drilling five holes on Snow Lake, where reserves in five zones are estimated at 4.2 million tons grading 0.19 oz. gold.
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