VANCOUVER (miningweekly.com) – Junior exploration company TomaGold has acquired a 39.5% stake in Goldcorp’s Sidace Lake property.
"This is a great transaction for TomaGold, as we are acquiring an interest in a gold mineralised system with tremendous potential. The property has National Instrument (NI) 43-101 indicated and inferred resources of over 360 000 oz of gold, which could be increased by additional exploration work. Other strong qualities include four additional promising exploration targets, and the current resource remains open along strike and at depth,” stated TomaGold president and CEO David Grondin.
Located 25 km north-east of Balmertown, in the Red Lake mining camp of Ontario, the Sidace property comprises 42 mining claims, with Goldcorp holding the remaining 60.5% under the terms of a joint venture agreement.
The Sidace Lake property has an NI 43-101-compliant indicated resource of 1.37-million tonnes grading 3.21 g/t for 141 300 oz of gold and an inferred resource of 2.1-million tonnes at 3.24 g/t for 218 800 oz of gold, with potential to increase the resources both laterally and at depth.
In terms of the acquisition, TomaGold has issued to the vendor Planet Exploration 15-million shares at C$0.10 apiece, for a total transaction value of C$1.5-million. A finder's fee of one-million shares of TomaGold at a deemed price of $0.10 each is also payable to Transcend Capital.
The property is currently subject to a 1% net smelter return royalty.
The Red Lake mining camp hosts several gold mines, where the combined production and remaining proven resources total more than 30-million ounces of gold. Gold production started at the Howey mine in 1930, and the Campbell and Red Lake mines remain in operation today. The largest mines historically are Placer Dome's Campbell mine, with cumulative production and remaining resources of 13-million ounces, now owned by Goldcorp, and Goldcorp's Red Lake (10-million ounces) and Madsen mines (2.5-million ounces).
"Our next step will be to look at the property data and make our own assessment based on what has been done to date. We are excited and eager to start working on this project," Grondin advised.