Northstar Gold Corp. (CSE:NSG) revealed it has expanded its Bryce gold project in Ontario, Canada by inking an option deal to buy the historic 161 hectare (Ha) Britcanna property lease.
The Britcanna lease is encompassed by Northstar's Bryce asset and is host to lode gold, volcanogenic polymetallic sulphides and porphyry-related mineralization within the so-called Britcanna porphyry.
Brian Fowler, the CEO of Northstar said the deal further consolidated the company's ownership of the Britcanna porphyry, which is "highly prospective for high-grade and low-grade bulk tonnage gold mineralization".
READ: Northstar Gold flags up new independent technical report for Bryce gold project, Ontario
"Northstar is formulating plans to advance the Britcanna and Bryce Gold Properties by way of surface mapping, trenching, sampling and diamond drilling," he added in a statement.
Under the deal, to earn a 100% interest in Britcanna, Northstar must pay C$18,000 in cash and issue C$15,000 worth of shares to the vendors upon signing and then make staged cash and share payments over three years.
On the third anniversary, it must issue C$30,000 of shares and pay C$25,000 for a 100% interest.
The vendors retain a 2% net smelter return (NSR) royalty, of which Northstar can purchase 1% for C$1 million and a standard right of first refusal on any proposed sale or transfer by the vendors of the remaining 1%.
At Britcanna, multiple gold zones have been explored from as early as 1937, with reportedly historic high-grade drill intercepts in the No.1 Zone of 170 grams per ton (g/t) gold over 1.1 metres (m) and 45.9 g/t gold over 1.5m.
The No.1 Zone is a porphyry-hosted silicified shear zone containing pyrite and chalcopyrite mineralization over a strike length of between 50 and 75m and a vertical depth of 40m.
Remnants of a nearby two-compartment shaft sunk to explore the No. 1 Zone underground are still evident, noted Northstar.
Approximately 4,400m of shallow drilling in 69 historic holes was completed on the property by several operators between 1936 and 1998.
Northstar's wholly-owned Bryce project spans 4,650 ha and sits on the western extension of the Ridout Break, 65 km east of the Juby gold project.
It hosts a variety of deposit types including porphyry-related gold-copper (Sunday Creek Porphyry), gold-rich copper-lead-zinc volcanogenic massive sulphides (Pike Lake Zone) and lode gold systems within an Abitibi multi-stage Archean porphyry / volcanic centre environment.
The company recently flagged up an independent NI 43-101 technical report for Bryce, which sits 35km south of its flagship Miller gold project.
Contact the writer at giles@proactiveinvestors.com