Brascan Gold Inc., through its subsidiary Baie Verte Resources Inc., has signed a letter of intent (“Letter of Intent”) with Quinlan Prospector’s Group (“Quinlan”) for an option on seven (7) prospective gold properties (“Properties”) in Newfoundland.
The Properties encompass a total of 13,125 hectares across Newfoundland. Brascan’s prevailing stable of five (5) gold properties is located in northern Newfoundland’s Baie Verte region.
The Letter of Intent envisions the Company and Quinlan entering into a definitive option agreement (“Definitive Agreement”) with Quinlan that allows Brascan to obtain a 100% interest in the Properties if the following tasks are completed within 48 months of the Definitive Agreement’s execution.
The tasks are (i) making a total cash payment of $281,000 to Quinlan; (ii) issuing 2,100,000 common shares of the Company to Quinlan or its nominee; and (iii) incurring a total exploration expenditure of $400,000 to finish an exploration program.
Over the course of the Definitive Agreement, the number of shares issued and cash payments will slowly rise. Quinlan will hold a 2% net smelter royalty (“NSR”) over the Properties upon earn-in as per the Definitive Agreement, of which 1% may be acquired by Brascan for $1,000,000 on or before a production decision.
Quinlan gives the following description of each of the Properties:
Straddles the Dog Bay fault line. Textbook folding in outcrops with intense quartz veining.
A legendary copper mine and 1 km of its strike length with untested gold values are included in the property.
The property covers a portion of unexplored Davidsville Group geology, which is the same group as Newfound Gold Corp.’s high-grade Keats gold zone.
Valentine Lake Area
The property is adjacent to Marathon Gold’s multimillion-ounce gold deposit at Valentine Lake. Historic samples exhibit higher gold levels in tills and soils, suggesting that mineralization potential may have been underestimated.
The property encloses a structurally controlled shear-related, epithermal prospect.
Big Vein Property
The property encompasses a massive quartz vein system that has never been tested for gold. A gold lake sediment anomaly is adjacent to the 100 m+ vein.
The property consists of a massive and long-lasting structure with prevalent anomalous gold values.
Brascan aims to perform field programs, including drilling, as soon as the Definitive Agreement is signed to maximize the gold potential of the Properties.
Brascan is building a large portfolio of gold properties, carefully selected across Newfoundland. The Company has hired Full Circle Drilling Inc. to begin several drilling programs in the coming months. With a major exploration program underway at the Alegre Gold project in Brazil and several exploration programs starting in Newfoundland, Brascan is poised for success.
Balbir Johal, CEO and Director, Brascan Gold Inc