Pacton Gold Inc (CVE:PAC) (OTCMKTS:PACXF) continues to increase its foothold in the Red Lake district in Ontario, revealing Tuesday it is set to buy further claims there from Frontline Gold Corp.
The latest ground is contiguous and to the north of Pacton's current landholdings and extend to within 3km of Goldcorp's newest production shaft.
Limited historical diamond drilling at the claims included an intersection of 24 g/t (grams per ton) of the yellow metal over 1m, found by SkyHarbour Resources in 2003.
The prolific Red Lake mining district has produced more than 30 million ounces of gold and benefits from major active mining operations, including the Red Lake Gold Mine of Goldcorp Inc (NYSE:GG), plus modern infrastructure and a skilled workforce.
Pacton's expanded land position now overlaps with the prolific Balmer Assemblage, known to host significant high-grade mineralization at Pure Gold's Madsen mine and Goldcorp's Red Lake and Campbell mines, which historically produced over 20 million ounces of gold combined.
Pacton's Red Lake claims lie between Pure Gold Mining's Madsen property, including the Wedge Zone, and Great Bear Resource's Dixie discovery.
The company can earn 100% interest in today's claims by completing a heli-mag survey and issuing a total of 350,000 shares and paying $100,000 over two years.
The site is subject to net smelter return (NSR) royalties totalling 2.25% and Pacton has the option to buy back a portion of the royalties for $250,000
Shares in Toornto added over 7% to $0.29 each.
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