DRYDEN, Ontario TRUE NORTH GEMS has optioned 100% interest in a 288-hectare property with confirmed emerald mineralization located in Northwestern Ontario. The emerald discovery on the Ghost Lake property marks the first potential gem-quality emeralds confirmed in Canada outside the company's Regal Ridge discovery in the Yukon.
The mineralized zone at Ghost Lake measures 40-m-long and up to 25-m-wide with another very similar outcrop observed 100-125 m along strike. Similar geology has been observed 350 m to the northwest of the main showing indicating the possibility of a large emerald-bearing zone. A 500-kg sample from the main zone contained several gem and near-gem emeralds. Within the next few weeks, True North will determine the chromium content of the emeralds found, which could add to their potentially high gem quality.
True North will pay $100,000 with 100,000 shares issued to the vendor over four years plus $250,000 on exploration and development of the property over four years. In addition, the vendor, is entitled to a 2% net smelter return on all non-gem materials extracted from the property and a 2% gross overriding royalty on all gem material extracted from the property. The agreement is subject to regulatory approval.
The next step is for True North to complete an exploration program, including
geochemistry, trenching and gem analysis on the property later this year to define the extent of mineralization.
For more information contact Ken Shortt in True North's investor relations department at 800-399-8055 or [email protected]