Puma Exploration has signed a LOI (letter of intent) with Black Widow Resources Inc. to sell 100% of its interest in the Little Stull Lake Gold project in northern Manitoba. The gold project is composed of the adjoining Little Stull Lake claims (20 claims totaling 2,900ha) and the Kistigan (14,715 ha) and Edmund Lake (20,310 ha) Mineral Exploration Licenses (MEL).
Following its corporate development plan, Puma is concentrating its efforts on the Famous Bathurst Mining Camp of New Brunswick, where a drilling program is underway at the Turgeon Zinc-Copper Project. Puma will continue to benefit from the exploration and development of the Little Stull Lake Gold project by having a significant (approximate 20%) equity interest in BWR.
The main elements of the LOI with BWR include a cash payment of $150,000, from which the first $50,000 was a deposit due upon signing the LOI as well as two other milestone payments of $50,000 each, payable when Edmund Lake and Kistigan Mineral Exploration Licenses are transferred to BWR. Also, Puma will receive up to 10,000,000 BWR shares that on a pro forma basis may represent a significant (approximately 20%) equity in BWR. The first 5,000,000 shares will be received at the signature of the final definitive agreement. The remaining 5,000,000 shares to be received upon certain exploration and development milestones being met by BWR over the next years. In addition, Puma will have the first right of refusal to maintain its pro rata interest in BWR by investing in future financings of BWR. If commercial production is attained at the Little Stull Lake Project, Puma retains a non-buyable 1% of the NSR. Puma will also nominate one director to the BWR board of Directors.
The most recent corporate activity in the Project area is the Yamana Gold (TSX:YRI) takeover of Mega Precious Metals (TSX VENTURE:MGP). Yamana now holds the Monument Bay Gold Deposit (see MGP news release 2015-06-22) located 15km southwest of the Little Stull Lake Gold Deposit
"Now, with what we think is the beginning of a new bull market for significant Gold Projects, we are very pleased to sign the LOI with Black Widow Resources Inc. From the different opportunities and propositions evaluated over the last few months, Mr. Novak and his management team at Black Widow were preferred because of their proven discovery track record and their demonstrable ability to develop effective and respectful working relationships with First Nation Communities." notes Marcel Robillard, President of Puma Exploration.
The Little Stull Lake gold zones lie in a similar geological environment to that of the nearby Monument Bay deposit being developed by Yamana Gold. Monument Bay is reported to contain 3.1 million ounces of gold (MGP news release 2014-11-21). The historical drilling carried out on Little Stull Lake property resulted in the discovery of high-grade gold mineralization in an Archean greenstone belt. The gold mineralization is mainly confined to quartz veins in brecciated basalt 25 to 50 metres thick. This unit has so far been traced on surface (diamond drilling and surface trenches) at Little Stull Lake for more than 5 km and coincides with a major regional fault striking more than 60 km in length that is currently protected by the Mineral Exploration Licenses.
Puma completed ten (10) drill holes totalling 1,500 metres in the Little Stull Lake gold property's 11W Zone in 2007. This zone carries the highest gold grades intersected in drilling of the basalt during previous work, with 330 g/t Au, 202 g/t Au, and 125 g/t Au over one metre of core, which are included in longer intercepts of 7.4 g/t Au over 47.0m and 4.5 g/t Au over 45.2m. All of Puma's holes intersected the mineralized basalt, which contains an average of three core intersections one metre in length with gold values ranging from 1 to 46 g/t Au. Moreover, the drilling intersected some high-grade layers one metre long containing 46.0 g/t Au, 15.6 g/t Au, 8.4 g/t Au, and 7.2 g/t Au (PUM news release 2008-09-01).