Solstice Gold Corp. (TSX-V:SGC) said it has established a 187-square kilometre (km2) strategic land position for the purpose of lithium and rare element pegmatite exploration located in the Stewart Lake area, part of the geological terrain known as the eastern English River Subprovince (ERS) in northwest Ontario.
The project is located approximately 70 kilometres (km) north-northwest of the town of Nakina and the CN railroad and has been acquired through staking of 175.2 km2 (767 claims) and a third-party option to acquire 100% of a further 11.46 km2 (56 claims).
In a statement, Mike Timmins, Solstice CEO commented: “There is compelling evidence of widespread pegmatites with prospective mineralogy on our claims. These widespread pegmatites are only known because, in the southern part of the current SLP claim block, iron formation and adjacent sediments were the subject of historical diamond drilling for iron."
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“There are no obvious reasons why pegmatites should be restricted and confined to only the iron formation and thus we believe the potential for additional pegmatite discoveries is significant. For this reason, and because pegmatite swarms typically form ‘fields’ covering large areas, we decided to establish a commanding and strategic land position to cover a large area of potential host rocks," he added.
In the southern part of the Stewart Lake Project (SLP), a known iron formation and sediments were the target of diamond drill exploration for iron in the late 1950’s and early 1960’s carried out by several operators. Filed government assessment reports indicate that of 31 diamond drill holes reported on the SLP (average length 132.2 metres), 28 of these (90%) document multiple pegmatite occurrences.
On January 26, 2023, the rare-element pegmatite potential of the ERS was highlighted by the Ontario Geological Survey (OGS) in its 'Recommendations for Exploration 2022-23' which included the following statement: “The ERS is geologically similar to the Quetico Subprovince (Breaks 1991) and, as such, has the potential to host rare-element pegmatites within its interior. The lack of exploration activity completed in the area, as well as minimal detailed mapping, limits our understanding of the mineral potential of the ERS.”
The OGS report also noted the presence of pegmatites immediately to the East of the SLP: “Numerous pegmatites, several of which are described in drill logs as bearing muscovite and/or garnet along with other mineralogical indicators of rare-element fertility.”
Solstice acquired its land position as part of an extensive review of potential rare element targets in northwest Ontario and, subsequent to its staking and following the release of the OGS recommendations, there has been considerable new staking activity in the area around the SLP further confirming the attractiveness of the region.
The company said it plans to mobilize ground teams in early summer to carry out exploration field programs designed to ground-locate and sample pegmatites for additional follow-up.
Option agreement to acquire third party Stewart Lake claims
Solstice also announced that it has entered into an option agreement dated February 21, 2023, with Fabio Micacchi (FM) and the optionor, 743584 Ontario Inc, to purchase an option to acquire the optionor's 100% interest in certain mining claims forming part of the SLP.
In consideration for the grant of the option, within two business days of the effective date of the agreement, Solstice must pay $15,000 in cash to the optionor and issue 750,000 common shares to FM.
To exercise the option, the company must conduct exploration expenditures on the claims and make payments according to the following: (i) a minimum of $25,000 in exploration spending by the first anniversary of the option agreement; (ii) a minimum of $50,000 in exploration spending by the second anniversary of the option agreement; and (iii) a minimum of $75,000 in exploration spending by the third anniversary of the agreement.
Upon exercise of the option, the company must make a final payment of $75,000 in cash to the optionor and will grant FM a 1% net smelter returns royalty on the claims.
No finder’s fees are payable in connection with the option agreement, which remains subject to the approval of the TSXV.
Solstice Gold is an exploration company with quality, district-scale gold projects in established mining regions of Canada. Its 194 km2 Red Lake Extension (RLX) and New Frontier projects are located at the northwestern extension of the prolific Red Lake Camp in Ontario and approximately 45 km from the Red Lake Mine Complex owned by Evolution Mining.
The company's newly formed 322 km2 Atikokan Gold Project is approximately 23 km from the Hammond Reef Gold Project owned by Agnico Eagle Mines Limited. The Qaiqtuq Gold Project, which covers 886 km2 with certain other rights covering an adjacent 683 km2, hosts a 10 km2 high-grade gold boulder field, is fully permitted and hosts multiple drill-ready targets. Qaiqtuq is located in Nunavut, only 26 km from Rankin Inlet and approximately 7 km from the Meliadine Gold Mine owned by Agnico Eagle Mines Limited.
An extensive gold and battery metal royalty and property portfolio of over 70 assets was purchased in October 2021. Over $2 million in value and three new royalties have been generated since the acquisition.
Contact the author at jon.hopkins@proactiveinvestors.com