Trillium Gold Mines (TSXV: TGM) this morning announced that it has acquired the Confederation Lake Properties from that of Pistol Bay Mining (TSXV: PST). Acquired for a total figure of $1.75 million, the transaction will be completed in a combination of cash and shares and will add over 15,000 hectares to Trillium’s land package in the Red Lake area.
The property itself is said to be structurally and geologically similar to that of Great Bear Resources (TSXV: GBR) LP Fault Zone, a region where significant gold mineralization was just recently discovered. The LP Fault consists of a strike nearly 4 kilometres long along with a low grade halo up to 400 metres wide. The company has indicated it intends to target sedimentary rocks that have similar characteristics to the geological markers on the LP Fault.
The Confederation Belt properties consist of numerous properties within the region, including the Lucky, Fly and Moth properties which combined are approximately 9,000 hectares, and cover a stretch of 18 kilometres on the Confederation greenstone belt. Felsic volcanics identified on a 2017 airborne survey match those that are identified as being adjacent to the LP Fault Gold Zone. Historic exploration on the property consists of more than 7,000 rock samples and 90 diamond drill holes.
The Joy property was also included in the transaction, a 3,300 hectare property that covers 13 kilometres of the same greenstone belt. It covers five separate VMS zones, one of which hosts a historic resource estimate of 270,000 tonnes grading 4% zinc plus copper. Also included is an additional 850 hectares that cover prospective geology in and around the recently acquired Copperlode East and Joy claim blocks.
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Finally, the $1.75 million acquisition includes the Pakwash Lake project, which is 2,175 hectares in size and contiguous to Trillium’s Leo property that is 100% owned. Combined, the property is just under 22,850 hectares in size while covering a strike of 40 kilometres, located southeast of Great bear’s Dixie project.
“These newly acquired Confederation Lake claims potentially hold unidentified gold deposits not previously identified during historical base metal exploration. We are looking forward to unlocking this potential and finding the next Dixie Lake style deposit.”
William Paterson, Trillium Gold’s Vice President of Exploration
The company has identified that data compilation and target generation on the newly acquired properties from Pistol Bay Mining is already underway.
The transaction itself provides for a $500,000 cash payment to Pistol Bay Mining, as well as a $1,250,000 payment in the form of common shares of the company. Shares issued will be based on the five day volume weighted average price of Trillium Gold two days prior to the close of the transaction.
Trillium Gold last traded at $1.49 on the TSX Venture, while Pistol Bay Mining last traded at $0.05.
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FULL DISCLOSURE: Pistol Bay Mining is a client of Canacom Group, the parent company of The Deep Dive. The company has been compensated to cover Pistol Bay Mining on The Deep Dive, with The Deep Dive having full editorial control. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security.
