Lake Shore Gold (LSG-V) has inked an option deal on Band-Ore Resources‘ (BAN-T) 54-claim Thunder Creek property, near Timmins, Ont.
Under the deal, Lake Shore can take a 60% interest in the property by paying $370,000 in cash, spending around $1.7 million on exploration over five years, and issuing 100,000 shares over four years. The agreement is subject to regulatory approval and Lake Shore’s due diligence.
A first wave of drilling on Thunder Creek will begin shortly, and will test for strike extensions of the Ultramafic and Footwall zones currently being drilled on the adjoining Timmins gold property.
Recent drilling on the Timmins Gold property returned up to 1.75 metes running 14.1 grams gold (T.N.M., Oct. 17-23/03). The results prompted operator Lake Shore to send two more drill rigs to the property to accelerate drilling designed to expand the gold resource in the Main zone, the Hanging Wall veins 1,2 and 3 and the Footwall and Ultramafic zones.
An option deal with Holmer Gold Mines‘s (HGM-V) paves the way for Lake Shore to earn a half-interest in the Timmins property, which is home to an indicated resource totalling 422,000 tonnes grading an uncut 17.78 grams gold per tonne. To do so, Lake Shore must fund $2.5 million worth of exploration, pay $250,000 in cash, and issue 150,000 shares over three years. Lake Shore must also confirm an indicated mineral resource of at least 500,000 ounces of gold.
Lake Shore is 48.9% owned by Aurora Platinum (ARP-T).
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