South Malartic picks up Nevada gold property

With an active exploration program at the Croinor gold prospect in northwestern Quebec, South Malartic Exploration (MSU-M) has looked to Nevada for another property acquisition in the Battle Mountain gold district.

The Mayflower property, occupying a surveyed section of 2.6 sq. km, is about 10 km northwest of the Pipeline gold mine, currently operated by Placer Dome (PDG-T). Little exploration work has been done on the property.

The vendor gets US$15,000 in cash on closing, and monthly payments of US$1,200 in the first year of the deal and US$1,500 in the second year. Beyond that, monthly payments are US$2,500, and all the monthly payments are deductible from a 3% net smelter return if a deposit is brought into production.

At the Croinor property, 60 km east of Val d’Or, Que., three more drill holes have intersected gold mineralization. South Malartic’s work at Croinor, where it is earning a 70% interest from Huntington Exploration (HEI-V), has led to the discovery of new mineralized zones in “tension-gash” and brecciated structures adjacent to a known mineralized shear zone.

The three newest holes cut narrow widths of gold mineralization at relatively high grades. In the first hole, a 0.7-metre interval graded 16.4 grams gold per tonne; in the second, a 1.8-metre section graded 8.2 grams; and in the third, 0.9 metre ran 8.4 grams.