Pacton Gold Acquires Strategic Land Position In The World-class Red Lake Mining District
Vancouver, British Columbia, May 17, 2017 – Pacton Gold Inc. (TSXV: PAC) (the “Company” or “Pacton”) is pleased to announce that it has entered into an option agreement to acquire a 100% interest in three (3) mineral property groups (the “Property”) in the Red Lake world-class mining district of Northwestern Ontario, Canada, from Frontline Gold Corporation (TSXV: FGC). The Property is comprised of 34 mineral claims and 2 mineral patents, totaling 274 claims units for a total area of approximately 4,420 hectares.
Dominic Verdejo, President and CEO of Pacton Gold commented, “We are pleased to have secured a strategic land package proximal or immediately adjacent to multiple operating gold mines and gold deposits in the prolific Red Lake Gold District in Northwestern Ontario. The area is home to some of the richest gold deposits in the world and has produced over 25 million ounces of gold from high grade zones. The land package significantly elevates our gold property portfolio and positions Pacton as a key exploration player in the Red Lake Gold Camp. We will immediately begin reviewing the newly acquired land package, which comes with an extensive geological history and database."
The Property consists of three (3) properties:
- Baird/Heyson mineral claims (“Baird/Heyson Property”),
- the Chukuni mineral claims (the “Chukuni Gold Property”), and
- the Whitehorse Island patents (“Whitehorse Gold Property”).
The Baird/Heyson Property, consisting of 15 mineral claims and 141 claim units totaling 2,256 hectares, is located along the south and southeast boundaries of Pure Gold Mining Inc.'s 100% owned Madsen Gold Project. Exploration by previous operators dates back to the 1940s, where work assessments have confirmed the presence of potentially significant gold, silver and copper mineralization associated within favourable geological settings.
The Baird/Heyson Property is principally hosted within Confederation Assemblage rocks, immediately south of the Balmer-Confederation unconformity, in the western portion of the Red Lake Greenstone Belt. There are three main exploration targets of interest on the Baird/Heyson Property: the westward extension of the prolific Madsen Mine Trend, the New Faulkenham Mine Structure Trend, and the base-metal massive sulphide VMS Zone. Previous operators drill tested a zone known as the Faulkenham Mine trend and a VMS copper target, and indicated the presence of a lower grade gold and copper system. Further work on the area is recommended to determine the source of the mineralization.
Chukuni Gold Property
The Chukuni Gold Property consists of 12 mineral claims, totalling 114 claim units and 1,824 hectares, and is located immediately south of and adjoins Goldcorp Inc.’s Red Lake Mine property. Further recommended work on the Chukuni Gold Property should involve a close examination of the recent Red Lake camp developments and also expanding the area of historical focus away from the old showings, noting historical exploration identified the potential of a gold-mineralized system.
Whitehorse Gold Property
The Whitehorse Gold Property, comprised of two contiguous claims totaling 35.55 hectares, hosts the Whitehorse Island gold shaft and is situated southwest of and contiguous with the Goldcorp and Premier Gold’s joint venture Rahill-Bonanza property, and northeast of Premier's 100% owned Hasaga property.
The Whitehorse Gold property has seen considerable past exploration and is host to the historic Orlac Deposit, located on and northeast of Whitehorse Island, southwest of Rahill-Bonanza. It has been explored and drilled since 1937 by a variety of operators and has an historic estimated resource of 300,000 tons @ 0.08 oz/t (Noramco, 1988) and 175,000 tons @ 0.20 oz/ton Au (Cable Mines & Oils Ltd, 1948) over an area approximately 160 metres long, 3-5 metres wide, and 125 metres deep. Historical intersections included 4.53 g/t Au over 26 metres and 4.70 g/t Au over 17.2 metres (Pure Gold Resources 1987-88) and 3.32 g/t Au over 28.4 metres, and 4.7 g/t Au over 17.2 metres (Noramco, 1988).
The Company can earn a 100% interest in the Property by issuing an aggregate of 4,200,000 common shares and making cash payments totalling $300,000 over a three-year period. The Property is subject to several underlying royalties. Frontline’s net smelter returns royalties range from 0.25% to 2.25% on all the mineral claims and mineral patents. The Company has the option to purchase up to one-half (1/2) of Frontline’s royalties by payment of $250,000 for each 0.25% of royalty held by Frontline.
The transaction is subject to the acceptance of the TSX Venture Exchange.
About Pacton Gold
Pacton Gold Inc. (TSXV: PAC) is a Canadian junior exploration company focused on mineral exploration in North America. The Company is currently advancing exploration activity on the Birch and Uchi Gold Properties adjacent to the Springpole Gold Deposit (controlled by First Mining Finance (FF: TSXV)) in the Red Lake Gold District of western Ontario and the Tully West Gold Property located northeast of Timmins, Ontario. The Company’s goal is to secure and explore quality mineral assets in the Americas.
All technical information in this press release has been reviewed and approved by Peter Caldbick, P.Geo. Mr. Caldbick is a Qualified Person for the purposes of National Instrument 43-101.
On Behalf of the Board of Pacton Gold Inc.
President and CEO
This news release may contain or refer to forward-looking information based on current expectations, including, but not limited the prospect of the Company achieving success in exploring the Red Lake Property and the impact on the Company of these event, including the effect on the share prices. Forward-looking information is subject to significant risks and uncertainties, as actual results may differ materially from forecasted results. Forward-looking information is provided as of the date hereof and we assume no responsibility to update or revise such information to reflect new events or circumstances.
Neither TSX Venture Exchange, the Toronto Stock Exchange nor their Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.