Acquires Mosher Bay Property - two historical shafts
posted on
Jun 21, 2011 10:21PM
Supportred By Major Shareholders In Alamos and O3 Mining
Manitou Gold Inc. TSX VENTURE : MTU ![]() |
June 20, 2011 11:20 ET
SUDBURY, ONTARIO--(Marketwire - June 20, 2011) -Manitou Gold Inc. (TSX VENTURE:MTU) ("Manitou") reports that it has signed an agreement to acquire 12 mining claims (the "Mosher Bay Property") in the Boyer Lake Area of northwestern Ontario, adding to the Company's strong portfolio of gold exploration properties in the historical Gold Rock Mining Camp.
The newly acquired Mosher Bay Property is situated along a splay structure related to the Manitou Straits deformation zone.
The Company has recognized a number of features within this area that compare favorably with known gold camps in the Abitibi sub-province. Geological features, such as the length of the deformation zone, extensive carbonate alteration, historical gold production, large scale fold structures, as well as the density of historical gold showings, make the Manitou Straits Deformation Zone and related splay structures promising exploration targets.
Agreement Details
The Company can acquire a 100% interest in the Mosher Bay Property, in exchange for the payment of $155,000 in cash and the issuance of 200,000 common shares of the Company over a four year period.
Upon Manitou Gold earning its 100% interest in the Mosher Bay Property, the optionors will be entitled to a net smelter royalty ("NSR") of 2% on production generated on the project. Manitou Gold may purchase 1% of the NSR (resulting in the optionors holding a 1% NSR) by making a cash payment of $1,000,000.
Securities issued pursuant to the Mosher Bay Option Agreement are subject to a four month hold period from the date of issuance and completion of the transaction is subject to approval of the TSX Venture Exchange.
Exploration Potential
The Mosher Bay Property hosts two historical shafts with limited documented gold production.
Modern exploration on the property by previous operators included ground geophysical surveys and limited diamond drilling, which was focused on the shaft areas and associated shear structures. Recent prospecting work identified an altered porphyry intrusion, which has not been previously explored.
The Company conducted a site visit and collected several grab samples from the property. Grab samples of altered porphyry returned assay values ranging from nil to 26.2 g/t Au. The altered porphyry represents an attractive exploration target that has received minimal exploration activities.
Regards, Hg