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Asante Gold buys 2% net smelter royalty on claims surrounding Seneca deposit in BC

Asante Gold buys 2% net smelter royalty on claims surrounding Seneca deposit in BC

Asante Gold Corp (CVE:ASE) said Tuesday it has acquired a 2% net smelter returns royalty in claims located in the Harrison Lake area of British Columbia. 

The property consists of 201 units, covering an area of 4,231 hectares, and surrounds four claims that cover the historical Seneca deposit and two claims that cover the Vent zone. 

According to Asante's statement Tuesday, the Seneca deposit and its general surrounding area have been explored extensively for minerals since the 1920s, when Kuroko style massive sulfide mineralization was discovered. Since then, companies such as Chevron, Noranda and Cominco have held options and explored the claims area, Asante said.

Historical reports filed with the BC Ministry of Energy and Mines show several drill holes, geochemical and airborne surveys on Asante's royalty claims, with past drilling on the Fleetwood zone returning 31.2 metres grading 2.1% zinc, 0.3% copper, 0.1% lead, 8.1 grams per tonne (g/t) silver and 0.1 g/t gold. The zone is located 3 km northwest of the historical Seneca deposit.

Asante said Tuesday the royalty was acquired from NSS Resources, a private British Columbia-based company, under a finder's fee arrangement. The company noted that it has two directors that are shared with NSS.

Asante continues to monitor the company's deal to acquire half of the 2% NSR royalty Goknet Mining holds on PMI Gold's Obotan gold project. PMI Gold was acquired by Asanko Gold (TSE:AKG) earlier this year, with the Obotan deposit in Ghana now a part of the new Asanko Gold Mine, which includes Asanko's Esaase deposit. 

The royalty acquisition on Obotan was initially announced in November 2012, with completion of the purchase still subject to certain closing conditions. In March 2013, Asante said that Goknet, the royalty holder, had not yet received the necessary consent for the deal, and that it had referred the matter to binding arbitration. 

A decision on the arbitration proceedings to affirm Goknet's royalty interests in the Obotan project in Ghana was originally expected last December, but was delayed to September this year pending the re-appointment of an arbitrator by PMI, Asante said in January. 

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