ONTARIO – Metals Creek Resources received TSX-V approval to earn a 100% interest in Goldcorp Canada’s Dona Lake mine property, located 9 km southeast of the town of Pickle Lake.
In a media statement, Metals Creek explained the project consists of 32 patented and leased mining claims totaling 430.1 hectares and covers the past-producing Dona Lake mine, an underground operation that was active from 1989 to 1994 and produced 246,500 oz. of gold at a grade of 7.44 g/t.
“The Dona Lake mine property is located in the Pickle Lake Greenstone Belt which is host to several historic mines including the Dona Lake mine, the Central Patricia mine and the Pickle Crow mine,” the company’s press release reads. “Gold mineralization at Dona Lake is hosted within three prominent banded iron formations with the middle iron formation hosting the Dona Lake mine (Main zone). The Main zone remains open at depth with limited drilling along strike. Mining stopped at the 455-metre level with historic drill results below the 455-metre level that selectively include 13.62 g/t gold over 13 metres, 8.74 g/t over 3.9 metres and 8.57 g/t over 2.8 metres.”
To move ahead with the acquisition, Metals Creek has to issue to Goldcorp Canada – the wholly-owned subsidiary of Newmont Goldcorp Corp. – 7,000,000 shares and spend $4 million in exploration over 36 months.
After vesting, Newmont Goldcorp will have a one-time option to elect to earn back 51% of the property by spending $4 million on exploration over the following 24 months.
This story first appeared on www.Mining.com.