Aim-listed Power Metal Resources has signed an option agreement to acquire a 100% interest in four separate gold exploration properties located in the prospective Hemlo and Schreiber area of Ontario, Canada.
The four option properties are located within 100 km west or southwest of the company's new Hemlo North gold project, which consists of the Dotted East, Olga Lake and Roger Lake properties, the acquisition of which was announced on January 21.
The four option properties comprise the McKellar, Enable, Magical and Coco East mining claims.
CEO Paul Johnson said on Tuesday that the option properties would give Power Metal a significant footprint in the Hemlo/Schreiber district, with ground tenure close to existing mines or other local properties subject to active exploration.
“We have moved quickly to secure these interests, but given the assessment work involved across four individual properties, we have also secured a 30-day option period to enable due diligence work to be undertaken carefully on the option properties.
“Shareholders will see with our recent actions that we are building a significant portfolio of precious metal interests in North America and that is something we intend to continue should the right opportunities continue to remain available to the company."
Should Power Metal acquire all four properties for a total consideration worth C$260 000, the vendors of the properties will retain a 2% net smelter royalty in respect of each of the option properties.
Preliminary exploration work planned for the option properties will include both remote sensing data interpretation and ground-based fieldwork with systematic soil sampling and geophysics expected to yield defined targets for future drill testing.