BTU Metals Corp (CVE:BTU) (OTCMKTS:BTUMF) has expanded its already commanding position in Red Lake, Ontario by striking a deal with GoldON Resources Ltd (CVE:GLD) (OTCMKTS:NCMBF) (FRA:6NR2) to earn up to 80% of the neighboring Pakwash North property.
The new 3,000 hectares asset is next to the east and southeast boundaries of BTU's Dixie Halo project and also neighbors Great Bear Resources Ltd's (CVE:GBR) (OTCMKTS:GTBAF) (FRA:0G6A) Pakwash property.
READ: BTU Metals kicks off 3,500-metre drill program at Dixie Halo in Red Lake
BTU said it sees the potential for copper silver and gold mineralization on the newly acquired property and is kicking off desktop and geophysical work immediately.
"We started land acquisitions in the Dixie area in 2018 and have worked continuously at strengthening our land position, expanding our geological understanding of the area, and defining solid exploration targets," said Paul Wood, BTU's chief executive in a statement.
"The Pakwash North property adds nearly 15% more area to our land position. We have already identified some areas with solid exploration potential where we intend to commence preliminary target definition work immediately."
To earn an 80% interest in Pakwash North, formerly called the Bruce Lake property, BTU must pay C$75,000 in cash, issue 1.4 million of its shares and incur expenditures of C$1 million over three years.
BTU may elect to stay at certain, fixed percentages over the course of the option at which time a definitive joint venture agreement will be entered into.
Also in Tuesday's statement, BTU noted that drilling was continuing at Dixie Halo on a number of high-priority gold targets developed over recent months, including testing of a strong SW-NE structural trend. Updates will be released as the program continues.
BTU's main Dixie Halo project covers 19,723 hectares and is contiguous with, and surrounds the well-known gold explorer's Great Bear Resources' Dixie project
Four out of five drill holes completed in late 2020 returned anomalous (greater than 100 parts per billion (ppb) concentrations of gold) in various locations.
Shares in BTU in Canada nudged up 3.57% to C$0.14 on the day.
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