GGX Gold Corp (CVE:GGX) (OTCMKTS:GGXXF) is considering expanding its presence in British Columbia’s Greenwood mining camp, according to a recent agreement signed with Golden Dawn Minerals.
The Vancouver-based company announced Tuesday that it has signed an exclusivity letter giving GGX a 60-day period to conduct due diligence on a possible acquisition in the province. GGX will investigate claim standings and exploration data and complete an independent third-party valuation of the Kettle River Claim Group.
Once the 60-day exclusivity period concludes, the gold company may look to negotiate an agreement with Golden Dawn Minerals for either all or part of the claim group, owned by Kettle River Resources, a private company of which Golden Dawn is the owner.
READ: GGX Gold appoints Greenwood mining camp veteran as president
The Kettle River grouping comprises of two separate claim blocks. One of the blocks, a nearly 10,300 hectare land package known as Phoenix, is directly adjacent to GGX’s Gold Drop property in southern BC.
The package houses the historic Phoenix mine, which formerly operated as an underground mine that produced over a million ounces of gold, 18 million ounces of silver and 575 million pounds of copper on and off since 1890.
As part of the evaluation process, GGX will be reviewing a recently compiled extensive digital database of the Phoenix claim block representing 120 years of geological and mining information, comprised of files, records, reports and maps, rock specimen samples, and a core storage library.
In its entirety the Greenwood mining camp has produced 1.4 million ounces of gold, 10 million ounces of silver and 700 million pounds of copper, making it one of the most prolific areas in Canada.
"As we continue to develop the Gold Drop property with its high grade gold, silver and tellurium veins we will now have an opportunity to significantly expand our land position in the prolific Greenwood mining camp,” said George Sookochoff, president of GGX Gold.
The team will be evaluating exploration data that has been recently compiled for the first time ever on the Phoenix claim block.
“I am confident the results of the review will be positive allowing us to negotiate and complete a Definitive Agreement,” Sookochoff said.
Shares of GGX rose 5.6% at C$0.10 in Toronto and traded at US$0.07 on OTC markets at Tuesday’s close.
Contact Angela at angela@proactiveinvestors.com
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