Prospector Metals Corp. (TSX-V:PPP, OTCQX:ETHOF) said it has executed a property option agreement with Newfoundland Discovery Corp (NEWD), in which NEWD may earn a 50% interest in the Schefferville Gold Project located in Quebec, Canada.
The gold and base metals exploration company said NEWD may earn interest in return for staged share payments to Prospector, and $4 million of work commitments by December 31, 2025, including $1.3 million by the end of 2022. NEWD will have the right to earn up to 100% interest by issuing 19.9% of its shares to Prospector and completing a total of $7.5 million of work commitments by the end of 2026.
"I am pleased to be announcing this property option agreement with NEWD that will see our Schefferville Gold Project drill tested this year,” Prospector president and CEO Alex Heath said in a statement.
“The Schefferville Gold Project covers a 20km by 70km region with numerous high-grade gold in rock samples and over fifty surface gold prospects. We look forward to working with NEWD and advancing this truly district scale opportunity," he added.
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Historical data sets from the Schefferville Gold Project have documented approximately 53 gold occurrences grading from 1 gram per tonne (g/t) gold (Au) up to 171.5 g/t Au in mineralized iron formations. However, only three of the 53 prospect areas have been drill-tested. A total of 27 short holes on these prospects yielded results, including 2.23 g/t Au over 19.5 meters (m), 10.21 g/t Au over 2.03m and 1.05 g/t Au over 12.5m.
Prospector completed Phase 1 of the 2022 exploration program in July from a newly-built exploration camp, comprising a detailed high-resolution helicopter aeromagnetic survey over the central portion of the Sable claim block followed by mapping, stripping and channel sampling at Arsene, Baleine Rouge, and Wolf, as well as prospecting and ground truthing of additional high-priority targets. Assays for Phase 1 are pending and together with the new airborne magnetic data, will help delineate drill targets for Phase 2.
The second phase of the exploration program is expected to start in September 2022, and will consist of diamond drilling of up to 3,500m to test multiple high-priority targets.
NEWD will commit a minimum of $1.3 million to the exploration program, while Prospector will undertake all exploration and development work on the project and is entitled to a 5% management fee on all expenditures incurred on the property.
Prospector Metals is a Discovery Group Company with a business model focused on district scale, early-stage exploration of gold and base metal prospects and to create shareholder value through new discoveries. The company's focus is to identify underexplored or overlooked mineral districts, which display important structural and mineralogical similarities with well-endowed mining camps.
Contact the author at jon.hopkins@proactiveinvestors.com