Juniors Sparton Resources (YSP-V) and Beaufield Consolidated Resources (BFD-V) have begun drill-testing several gold targets in the Hemlo region of northern Ont.
At the recently acquired Qued project, the pair are targeting possible depth-extensions of showings uncovered in trenching. Samples from the trences yeilded as much as 8.85 grams gold per tonne in iron formation, and several widely spaced holes drilled to the south returned upwards of 1.4 grams over a metre of silicified and sericitized porphyry.
In exchange for the property, the pair each issued 100,000 shares, plus a warrant for 200,000 shares, to former owners Newmont Mining (NEM-N) and Placer Dome (PDG-T). Each warrant can be exercised at $70,000 in the first year of the deal, $100,000 in the second year and $150,000 in the third year.
The majors also retain a 2.5% net smelter return royalty.
Qued covers about 96 sq. km and is located on the northern limb of the Hemlo structure. The structure is known mostly for hosting the Hemlo mines — David Bell, Williams and Golden Giant mines, which, combined, account for roughly 25% of Canada’s total annual gold production.
At the Little Black River property, near Heron Bay, holes will be collared on a showing that averages 1-12 grams gold. The showing is characterized by sheared, silicified and mineralized feldspar porphyry and tuffaceous volcanic rocks. A 400-metre-long soil anomaly coincides with the showing, and an electromagnetic anomaly sits just off to the side.
At least one hole will be sunk in the JB-1 and JB-2 claims, which lie north of the Hemlo mines. The claims overlie untested airborne electromagnetic anomalies.
Meanwhile, ground geophysical surveying continues at the Melrose property, about 4.5 km northwest of the Hemlo mines. The surveys are following up a possible 8-km-long structural corridor outlined in an earlier airborne geophysical survey. Several gold-in-soil anomalies coincide with the supposed structure.
Sparton and Beaufield each own a half-interest in the joint venture.
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