MAS Gold announced plans to acquire a 100% interest in the formerly producing Contact Lake Gold Mine in Saskatchewan.
The 463-hectare property, located in the highly prospective La Ronge Greenstone Belt in the province, was mined from 1994 to 1997 by owners Cameco Corporation (TSX:CCO).
Vancouver-based MAS entered into an agreement with the province of Saskatchewan to transfer the property into the junior resource company’s care.
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MAS said that it plans to digitize a wide swath of historical data from the gold deposit to begin initial modelling and help to guide exploration plans along the Bakus gold zone. The firm may also undertake surface drilling to twin historical holes and confirm any historically-defined potential resource.
"We are very pleased to be able to announce this acquisition and wish to thank the Saskatchewan government for working so diligently with us to complete it," MAS Gold CEO Jim Engdahl said in a statement.
"We are very excited to begin working with the voluminal and detailed historical data MAS has available to identify both new resources and the areas that are reported as not mined. We believe the opportunities to be tremendous given the underground infrastructure in place and the significant amount of data we have available to begin developing a new model that will guide a new round of exploration drilling on this brownfields site."
Engdahl told sharehonders that the Contact Lake mine site is located within 10 kilometres of the company’s North Lake Deposit, calling the new property “an important new addition in our ‘hub and spoke’ mining concept".
Under the terms of the agreement, MAS Gold must meet a set of conditions prescribed in The Reclaimed Industrial Sites Regulations, or the RISA Regulations, and accept responsibility for the Contact Lake Property in accordance with the RISA Regulations.
The group must also provide evidence satisfactory to the province that it has sufficient resources to cover the anticipated future monitoring and maintenance costs, and provide financial assurance in the form and amount acceptable to the province.
MAS Gold said it expects all of the requirements will be fulfilled by December 31, 2021.
Contact Angela at angela@proactiveinvestors.com
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