Gander Gold Corp (CSE:GAND) told investors it has signed a binding letter of intent (LOI) with Puddle Pond Resources to buy additional claims contiguous to the Lizard Pond area of its Gander South project in Newfoundland.
Gander said the three licences acquired, previously collectively referred to as the ‘Great Bend Project,’ host at least five historic gold occurrences with grab samples ranging as high as 22.5 grams per tonne gold.
The claims are located at the intersection of several major regional structures, including the Dog Bay Line, and are contiguous to New Found Gold’s Queensway South Project to the East and South.
The company noted that in a 2022 diamond drill program at Queensway South, New Found Gold reported significant gold mineralization in 27 out of 33 holes, with visible gold present in 10 holes across four target areas. New Found Gold has continued with surface exploration activities and additional diamond drilling in 2023.
“Gander Gold is very pleased to announce the addition of 26 new claims to our original 42 claims at Lizard Pond, where Gander recently identified a significant gold-bearing system, with gold mineralization present throughout all 65 meters of each of the project’s three 2023 RAB drill holes,” Gander CEO Mark Scott said in a statement.
“The new claims contain historic high-grade gold occurrences and extend the Lizard Pond claims along the interpreted strike of the system targeted by this year’s RAB drilling.”
Under the LOI, Gander will pay Puddle Pond a total of C$25,000, including $15,000 on the signing of the final purchase agreement and $10,000 by January 15, 2024, as well as common shares worth C$50,000.
Puddle Pond will retain a 2% Net Smelter Return royalty on the claims, half of which may be repurchased by Gander at any time for C$500,000.
The seller will also receive a one-time bonus payment of 500,000 Gander shares if Gander establishes a NI 43-101 compliant resource of 200,000 ounces of gold on the recently acquired claims.
“The local geology and structures are favorable, with the Dog Bay Line and Appleton Fault in close proximity to our claims,” Scott concluded.
“Gander looks forward to follow-up exploration and drilling at Lizard Pond in 2024.”
Lizard Pond forms part of the larger Gander South project, one of Gander Gold’s eight project areas in the province of Newfoundland and Labrador. The company’s other Newfoundland projects include Gander North, BLT, Mount Peyton, Carmanville, Little River, Hermitage and Cape Ray II.
Contact the author at stephen.gunnion@proactiveinvestors.com