Builds On Mayo Mining District Position
Snowline Gold Corp. (CSE: SGD) (US OTC: SNWGF)has entered into a property option agreement with Epica Gold Inc. and Carlin Gold Corporation under which has acquired the option to purchase a 100% interest in 812 mining claims in five blocks collectively covering approximately 16,500 hectares in the Yukon.
The Properties are located in the Mayo mining district where they supplement Snowline’s existing claim position across a regional geological feature considered by the company to be highly prospective for gold and base metal mineralisation. Snowline’s mineral holdings now comprise some 106,500 hectares and are focused within the Selwyn Basin.
Under the terms of the Agreement, Snowline can acquire the Properties in exchange for payments to the Optionors of $100,000, ($50,000 on signing and $50,000 on the first anniversary), and issuing 1,000,000 common shares to the Optionors, (500,000 common shares issued on signing and 500,000 on the first anniversary). All payments made by the company are divided 50/50 amongst the Optionors. The agreement is subject to a 2% net smelter returns royalty, with a 1% buy-back provision for $2,000,000.
“This claim package has been on Snowline’s radar from a long time,” said Scott Berdahl, CEO and Director of Snowline.
“With our promising results this season, we are excited to further solidify our cornerstone position in an area with demonstrated and increasing potential to become a significant new gold and base metals district.
“Each acquired property bolsters an existing Snowline project. We further benefit from the previous operators’ extensive geochemical work, which identified multiple promising targets for follow-up.
“As with our Jupiter zone at Einarson and Valley zone at Rogue, this option provides Snowline and its shareholders low-cost entry to high-quality targets at the drill discovery stage.”
The “X” and “Rea” Blocks – Cynthia
The X claims lie within one km of the southern boundary of Snowline’s Cynthia project, south of Rogue and Einarson. Historical soil sampling conducted by the previous operator on the X claims revealed multiple gold-in-soil anomalies, including a 3.5 x 1.0 km area with generally elevated (>10 ppb Au) to highly anomalous (up to 6,355 ppb Au) gold in soils. Within this area is a 300 x 250 m zone of consistently anomalous soils, with 8 of 52 soil samples assaying above 1,000 ppb (1 g/t) Au.
These anomalies are hosted in deformed Devonian age black shales intruded by a Mayo suite Cretaceous intrusion nearby, making for what the Company believes to be a highly prospective environment for several styles of gold deposit. Additional high gold values were encountered in historical soil sampling along strike, some 4 km from the anomaly.
The REA claims cover a zone of gold and base metal anomalism in soil and rocks near a zone of complex structural intersection and along strike of the X claims.
The claim blocks comprising the HS, GS and Y claims extend coverage along the same belt of prospective Ordovician to Devonian rocks that host the strong, extensive, multi-element base metal anomalism identified in stream sediment and soil samples on the company’s Ursa project. This effectively triples the strike length of prospective rocks controlled by Snowline along this belt to over 30 km (non-contiguous). While Ursa appears to cover the strongest signal from this anomalous trend, historical stream sediment and soil sampling on the newly acquired blocks returned up to 1.84% zinc in stream sediment samples and 1.1% zinc in soils.
The Selwyn Basin is among the world’s richest sources of zinc, with three major districts recognized to date: the Anvil District, Howards Pass, and Macmillan Pass. The rocks underlying Ursa and the newly acquired claims are similar in age and provenance to units at both Howards Pass and Macmillan Pass.
While Snowline’s focus remains on its flagship gold projects, this expanded land position over prospective ground strengthens the opportunity for joint-venture, spin-out or sale if significant base metal mineralisation is encountered on the Ursa project.
For further information please visit: https://snowlinegold.com/