Intact Gold buys past producing gold hill - Blackjack property
Intact Gold has entered into an agreement with King Bay Gold Corporation to acquire an undivided 100% interest in and to certain mineral properties, together with the surface rights, mineral rights, personal property and permits associated therewith (collectively, the "Gold Hill – Blackjack Property" or the "Property"), located in the Kenora Mining Division of Ontario.
The past producing Gold Hill gold mine historically produced 220 tons, grading 4.95 oz Au/ton, while the Blackjack historically produced a historical bulk sample of fifty tons at 0.33 oz Au/ton.
Closing of the Agreement is subject to a number of conditions, including the receipt of the approval of the TSX Venture Exchange (the "TSX-V").
Anthony Jackson of Intact Gold comments: "Intact is excited to acquire a high grade past producer such as the Gold Hill - Blackjack Property. This acquisition will add to our portfolio as we continue to acquire gold assets and take advantage of the current market conditions to acquire undervalued assets with the objective of establishing a portfolio of advanced projects for development."
Intact Gold will acquire 100% of the Gold Hill - Blackjack Property in consideration for:
the payment to King Bay of $10,000 upon receipt of TSX-V approval;
the issuance to King Bay of 100,000 common shares of the Company (each, a "Share") upon receipt of TSX-V approval; and
the issuance to King Bay of 100,000 purchase warrants of the Company, each of which will be exercisable into one Share, at a price of $0.25 per Share, until February 10, 2018.
The Property is subject to a 2% net smelter royalty (the "Royalty") on future gold production in favour of the original vendors of the Property. The Company has the option at any time to purchase 1% of the Royalty on payment of $1,000,000 to the original vendors.
About The Property
The Gold Hill - Blackjack Property is located in the Townships of Kirkup and Manross in the Kenora Mining Division of Ontario . The Property is approximately 20 kilometres southeast of the City of Kenora, Ontario and is accessible from Highway 17 east to the Storm Lake Road. The Property consists of one claim made up of 15 claim units, comprising a total of 600 acres.
The Property comprises the former Gold Hill gold property (4 shafts) and Blackjack property (1 shaft) property, both past producers, as well as the Golden Gate gold prospect (1 shaft), and the Combination Vein gold prospect (1 shaft). The Blackjack, Gold Hill, Golden Gate and Combination Vein properties were all mined in the late 1800's. Work ceased in 1899 when the mill at the Gold Hill mine burned down.
Gold Hill has a reported historical production of 220 tons, grading 4.95 oz Au/ton, for a total historical production of 1,089 oz Au, and Blackjack produced a historical bulk sample of fifty tons that produced 0.33 oz Au/ton.
Historically, at Gold Hill, gold occurs mainly in the Pebble Vein, a system of quartz veins in a shear zone hosted by mafic volcanics within 1.6 kilometres of the western edge of the Dryberry batholith. This batholith appears to be similarly mineralized along its entire western contact.
At Blackjack, gold occurs within and adjacent to ribboned and vein quartz in a highly fissile, chloritized, cross-cutting and carbonatized, shear zone striking east-west and within a highly silicified fine-grained felsic intrusive rock unit, interpreted to be a possible offshoot of the batholith.
The Pebble vein and shear zone system is reported to be continuous for at least 490 metres (or approximately 1,600 feet) (Kidd Creek). The shafts and numerous surface workings are believed to confirm this. It consists of a series of en echelon quartz veins in a shear zone that pinch and swell, ranging from approximately eight inches to thirty inches wide.
The vein system has been developed by three shafts with a reported fourth shaft of now uncertain location. The Gold Hill Pebble Vein and Blackjack Veins provided most of the historically mined ore. The remains of two mills and two tailing ponds attest to the possibility of significant unreported historical production.
The occurrence of a cross-cutting shear zone at the Blackjack, and the carbonatized breccia zone at Gold Hill, have allowed for the concentration of significant mineralization, thus distinguishing these old prospects from many others in the area.
Intact Gold is not treating the above mineral resource estimates as a verifiable resource, nor has a National Instrument 43-101 report been compiled nor verified by a qualified person.
Source: Company Press Release