PRECIOUS METALS — Moss Lake consolidates ground

A deal with Landis Mining (LIS-A) will allow Moss Lake Gold Mines (MOK-T) to resume exploration at its Moss Lake gold deposit, 115 km west of Thunder Bay, Ont.

Previous work by Moss Lake, a 60% subsidiary of River Gold Mines (RIV-T), has defined a 60-million-tonne resource grading 1.1 grams gold per tonne. This resource includes a higher-grade zone with 475,000 tonnes grading 6.2 grams.

The new deal consolidates the Moss Lake property with the Fountain Lake property, a 149-claim (24-sq.-km) block that borders the Moss Lake ground on the western, southern and eastern sides. The property covers the strike and downdip extensions of Moss Lake’s deposit, and the deal will admit Moss Lake Resources on to the property to evaluate the structural extensions.

Landis, which had an option to earn an 80% interest in the Fountain Lake property, shares $45,000 in cash and 4.5 million shares of Moss Lake Resources with the Fountain Lake property’s original stakers. David Birkett, president of Calgary-based Landis, has joined the Moss Lake board of directors.

On the newly consolidated property, comprising 29 sq. km, Moss Lake plans to investigate mineralization in the Boundary zone, an anomaly detected in induced-polarization surveys. A previous drill hole in the area intersected 4.5 metres of mineralization grading 33.8 grams gold per tonne.