Canadian junior mineral exploration company, Fancamp Exploration Ltd., has announced the acquisition of an option to obtain a 100% stake in a placer gold discovery located west of Fredericton and the prospective bedrock source.
Within the Little Mactaquac Stream, the discovery was made in mid-2017 when Mr Alex Kramer—an amateur prospector—was panning and discovered many nuggets resembling the size of watermelon seeds.
Later that summer, the discovery was examined and confirmed by geologist Dallas Davis, P.Eng, and his son Adrian, P. Geo. Davis partnered with Mr Kramer and registered a 990 ha claim apart from the original 506 ha block of Mr Kramer.
Follow-up analysis and compilation of glacial deposits as well as stream sediment distribution of anomalous gold (NB Department of Natural Resources & Energy, Plate 98-45A) denoted a potential source about 4 km up ice, to the northwest area wherein the airborne magnetic data (GSC Map C41523G, 1988) denotes an unroofed intrusive cut by a sequence of weak south/north structural trends.
In 1988, Noranda subsidiary Brunswick Mining & Smelting carried out the only reported historic exploration (Report of Work #473638, 1989), when a gold-bearing drill intersection prompted a geochemical soil survey. This intersection is located at the Consolidated Durham (Lake George) antimony mine about 15 km to the southwest region along the same trend of Silurian greywacke and argillite sediments adjoining Devonian granites. Noranda management considered these survey results as inconclusive and, as a result, no follow up work was undertaken; however, one soil sample returned 405 ppb gold (Au).
During the summer of 2018, the pair was able to undertake a sequence of soil sampling profiles across the south/north trend, with the aid of New Brunswick government grants. Furthermore, the soil samples were taken in accordance with the sampling protocol proposed by SGS for surveys for which their proprietary MMI-M (Mobile Metal Ion) multi-element analytical method was applied.
A range of prominent spikes in gold and rare-earth elements were exposed along a north-south strike length of 1.2 km. Fascinatingly, the widest of these Au/REE anomalies took place in the close proximity of the 405 ppb Au soil sample of Noranda. These robust MMI anomalies were estimated to have a width of 20 to 80 m.
Earlier in March 2019, the property was transferred to private company Edge Exploration Inc. Edge Exploration carried out the regional structural analysis, which indicated the existence of a south/north structural corridor that was not properly explored. This corridor extends from the Bay of Fundy about 300 km north to the western tip of the Bay of Chaleur.
The Clarence Stream gold prospect, the Mt. Pleasant REE-tin-tungsten deposit, the Sisson Brook Tungsten-Molybdenum deposit, and the Lake George (Consolidated Durham) antimony deposit and north of the present property are located within this corridor from south to north.
Edge Exploration and Fancamp Exploration believe that in view of the MMI results, they might be looking at the occurrence of a type of an Iron Oxide Copper Gold (IOCG) at Mactaquac. The soil anomaly area does not have any outcrop, and therefore instant plans are to validate the source of the closely monitored MMI response via overburden and bedrock drilling. As it is, the property currently covers about 8600 acres and roughly 11 km-strike length of the south/north structural corridor. Work is set to begin soon.
Following are the terms of the option:
A three-year option agreement to earn an equity interest of 50% via contributing a total of $300,000 in terms of exploration costs and the issuance of 250,000 fully paid shares of Fancamp Exploration to Edge Exploration, towards the end of the period. No partial interest will be earned until the completion of these terms. Only the first year exploration commitment of $75,000 and the initial payment of $15,000 (made) are firm, and the balance is optional.
Fancamp Exploration has the option to go for an interest of 75% by spending an additional $1M over a period of two years and the issuance of another 250,000 fully paid shares of Fancamp Exploration towards the end of each year.
Fancamp Exploration will retain the right to earn a further 25% to 100% equity interest by creating a bankable feasibility within a period of three years and the issuance of 1M fully paid Fancamp Exploration shares to Edge Exploration. The latter will retain an NSR of 2%, with a buyback option of 1% for $1M.
The above terms are subject to regulatory approval.