Snowline Gold Corp said that it has entered into a property option agreement with Epica Gold Inc and Carlin Gold Corporation to buy a 100% interest in 812 mining claims in five blocks collectively covering approximately 16,500 hectares.
The properties are located in the Mayo mining district, Yukon Territory, where they supplement Snowline's existing claim position across a regional geological feature considered by the company to be highly prospective for gold and base metal mineralization.
Snowline's mineral holdings now comprise some 106,500 hectares and are focused within the Selwyn Basin.
WATCH: Snowline Gold sees good results from Jupiter stepout and visible gold in first drill holes at Rogue
Snowline said the claim package has been on its radar for a long time and further solidifies its cornerstone position in the area.
“Each acquired property bolsters an existing Snowline project,” CEO Scott Berdahl said in a statement.
“We further benefit from the previous operators' extensive geochemical work, which identified multiple promising targets for follow-up.
“As with our Jupiter zone at Einarson and Valley zone at Rogue, this option provides Snowline and its shareholders low-cost entry to high-quality targets at the drill discovery stage,” he added.
Under the terms of the agreement, Snowline can acquire the properties in exchange for payments of $50,000 on signing and $50,000 on the first anniversary, and issuing 1 million common shares to Epica Gold and Carlin Gold, also in two tranches. The agreement is subject to a 2% net smelter returns royalty, with a 1% buy-back provision for $2 million.
Snowline Gold is a Yukon Territory focused gold exploration company with a seven-project portfolio covering more than 90,000 hectares. It is exploring its flagship 72,000-hectare Einarson and Rogue gold projects in the highly prospective yet underexplored Selwyn Basin.
Contact the author at firstname.lastname@example.org