Pacton Gold Inc (CVE:PAC) (OTCMKTS:PACXF) is poised to begin drilling in Red Lake after the junior explorer received its permit from the Ontario regulators this week.
The Vancouver-based company announced Wednesday that the Ontario Ministry of Northern Development and Mines granted its exploration drilling permit, allowing Pacton to conduct diamond drilling and outcrop cleaning.
Pacton's shares gained 4.4% in Wednesday morning trading at C$0.24.
The company told shareholders that it is planning a 10,000 metre drilling program to commence in the fall of 2019.
The junior explorer’s assets in the famous Red Lake gold camp are situated between Pure Gold Mining’s Madsen project and Great Bear Mining’s Dixie property, both high-grade deposits.
The new permit covers the Boyden and Carricona areas near the Madsen-Dixie fault, where Pacton recently revealed surface sample results of up to 126.5 grams per ton gold.
Sampling activities have uncovered multiple drill targets, Pacton said in a release. Surface mapping is also underway in Red Lake to advance existing high-grade targets.
Pacton’s chairman Dale Ginn told investors that the company was ahead of schedule thanks to the speed of the permitting application.
“Receipt of our first drill permit ahead of schedule is a positive step and we look forward to operating the first comprehensive drill program in many years over the Boyden and Carricona prospects,” Ginn said.
The company is also engaging with local First Nations groups and communities surrounding the Red Lake area as it advances its projects.
--Updated with share price--
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