Zijin Mining to take 9.9% stake in Montage Gold
As part of the deal, the Lundin Family Trust also agreed increase its stake in the company from 17.7% to 19.9%.
Vancouver-based Falcon Gold (TSXV: FG) acquired this week the Spitfire and Sunny Boy claims in south-central British Columbia.
In a press release, the miner said the claims occupy 502 hectares and are located approximately 16 kilometres east of Merritt, in the Quesnellia terrane. The area is characterized by submarine volcanic and volcaniclastic rocks of the Nicola group to the south and the Takla group in the north.
To earn 100% interest, Falcon has agreed to issue 2.5 million common shares and 2.5 Million warrants to the vendor. The company will also make a one-time cash payment of $25,000
“The Merritt district has a lengthy history of mineral exploration and development that began in the late 1800s with first recorded discoveries being made on the Nicola Lake property in 1908, which location is presently covered by the northeast portion of the Sunny Boy claim block.
A resurgent focus in the area makes it B.C.’s newest emerging gold belt,” Falcon’s media statement reads. “The original exploration and discoveries were of gold, platinum (in tulameenite, a Pt-Cu-Fe metallic mineral) and copper. Numerous copper discoveries became major mines in the area, including Craigmont, Copper Mountain, Afton and Highland Valley.”
According to the company, its 2019 due-diligence work at Sunny Boy confirmed the presence of gold mineralization along the project’s Master Vein over a 300-meter strike length with samples ranging from 0.33 to 2.74 oz/t Au.
Recent data compilation of historic exploration work suggests that the best exploration targets on the property are high-grade gold vein deposits along flexures in structure in the northeastern portion of the project, the company said.
“The company is planning tightly spaced soil sampling, EM and IP geophysics, and structural mapping as the best approach for identifying new mineralized structures for both gold and base metals occurrences.”
