Mexivada Mining Corp. announced the signing of an option to purchase 80% of the Golden Porcupine gold property, Deloro Township, in the main Timmins gold camp, Ontario, Canada, from Mhakari Gold Corp, under an agreement dated October 28, 2010.
This agreement options Mexivada its first Canadian gold property, in the heart of Canada's premier gold mining camp, south of the 30,000,000 oz. Hollinger - McIntyre mines complex, southwest of Goldcorp's +15,000,000 oz. Dome Mine, and east of Lakeshore Gold's West Timmins project.
The Deloro Gold Property is located 0.7 km-, 2.5 km-, and 3.9 km west-southwest of the historic, past producing Delnite, Aunor and Buffalo Ankerite mines, respectively. Collectively these three mines produced over 4.4 million ounces of gold. The southern boundary of the main "break" of the ENE-trending camp-wide ore host Porcupine-Destor Fault Zone ("PDFZ") is interpreted to go through the northern part of the Golden Porcupine property, east of the recently discovered and explored Naybob gold deposit. The property also has strong, northerly trending faults that crosscut the PDFZ-generation faults. Some historic drilling was conducted near the PDFZ in the northwest corner of the property. Mexivada will compile and interpret available historic data for the property.
Ground magnetic, VLF-EM, and induced polarization ("IP") surveys recently were completed on the property for Mhakari, and enzyme leach soil samples also were taken. Strong magnetic lows with coincident I.P. and soil geochemical anomalies have been found, with ENE-, NW-, and N-S trends. Historic assessment work at Golden Porcupine also showed late porphyritic intrusive rocks present, opening the possibility for large, open pittable, Pamour Pit type disseminated gold deposits. Certain other companies exploring the region recently have noted the importance of northerly trending structures that intersect the PDFZ, such as in the newly developing West Timmins camp.
One magnetic-low anomaly area in the southern part of the Golden Porcupine property contains a large, 15 by 60 metre trench that was developed on a highly silicified, quartz-veined sequence interpreted to be banded iron formation. Two old trenches and a shaft are present in the southeastern portion of the Golden Porcupine property, and the trenches reportedly contained very high-grade silica-rich gold mineralization at the surface. Mexivada is starting a program of surface geologic mapping and sampling to evaluate these attractive targets. It appears that no drilling has been conducted previously on these two targets, nor in the areas with the intrusive rocks.
Mexivada can earn an 80% interest in the Golden Porcupine ("Deloro") property by compensating Mhakari in structured payments of $165,000 in cash and additional common shares of Mexivada Mining Corp., and also would invest a sum of $800,000 into Golden Porcupine in exploration and development expenditures (inclusive of assessment work) over a 36 month period to earn an 80% interest in the property. Mexivada is seeking flow-through financing to fund these exploration and development efforts, and also has a Private Placement that is still open to Qualified Investors.
Mr. Richard Redfern, CEO and President of Mexivada stated: "We are extremely pleased to be entering the historic and prolific gold mining camp of Timmins. It is consistent with our company's strategy to explore and develop properties in areas with proven, multi-million ounce gold trends, excellent infrastructure, and with near-term, drill-ready targets." Ari Todd, public relations consultant for Mhakari Gold Corp stated: "We are very pleased to have an extremely talented technical team working on the Property. We feel very confident in Mexivada's ability to explore and prepare the property to drill ready status. There are already very strong targets, plus more targets to define over the coming months. Mexivada is well positioned to further define and develop these targets for drilling in the near term."
Source: MEXIVADA MINING CORP.