Galleon Gold acquires additional ground – West Cache Timmins now 10,350 Hectares
“Our success at West Cache has shown the significant potential that exists in the Timmins West Camp; we are very pleased that the owners of the claims adjacent to us have entrusted Galleon Gold with the continued exploration of the newly acquired ground and we welcome them as shareholders,” said R. David Russell, President and CEO of Galleon Gold.
Galleon Gold Corp. has entered into an agreement to acquire 129 mineral claims totaling 2,760 hectares contiguous to the company’s existing property position at its West Cache Gold Project in Timmins.
The addition of the Mineral Claims located in Price Township adds to the Company’s land position 13 kilometers west of Timmins and expands the total claim package to 10,350 hectares. Figure 1 provides the location of the new ground in relation to the existing West Cache Project and adjacent operators in the Timmins Camp.
Figure 1 – Galleon Gold’s Land Position in the Timmins Gold Camp
Terms of the Agreement
Pursuant to the terms of the Agreement with Delford Investments Inc. (“PrivateCo”), the Company will issue PrivateCo 250,000 common shares of Galleon Gold (the “Galleon Shares”) and grant a 2% Net Smelter Royalty (“Royalty”) to obtain a 100% interest in the Mineral Claims. The Company may at any time purchase 1% of the Royalty for a cash payment in the amount of one million dollars. The transaction is expected to close by the end of March and is subject to the approval of the TSX Venture Exchange. The Galleon Shares will be subject to a hold period of four months and a day under applicable Canadian securities laws.
About the Price Property
The Price Property is located approximately 10 km SSW of the West Cache Gold Project’s resource and is underlain by Archean metavolcanic rocks, metasedimentary rocks, quartz feldspar porphyry and syenite dikes. The Destor-Porcupine Fault Zone trends east into the western part of the Property and the Mattagami River Fault runs N-S through the center of the Property. Exploration at the Price Property began in the 1940’s and mainly targeted sulphide-rich NW to NNW-trending iron formations and quartz veins exposed in outcrop. Little drilling or geochemical work has been done to follow-up targets generated from geophysical surveys, which appear successful at identifying the iron formations. Precious and base metal mineralization have been identified over limited prospecting and drilling programs on the Property.
About the West Cache Gold Property
The Property is situated in the Western Porcupine Gold Camp along the Destor-Porcupine Fault Zone (“DPFZ”) in the Abitibi greenstone belt. The Property is predominantly underlain with Archean rocks of the Tisdale and Deloro Assemblages (metavolcanics), Porcupine Assemblage (metasediments) and quartz feldspar porphyry of the Porcupine Intrusive Suite. Paleoproterozoic Matachewan diabase dikes trend north-south to northwest-southeast across the Property. The main break of the DPFZ trends east-west through the eastern part of the Property and is offset to the south in the western portion of the Property by the Mattagami River Fault. Gold mineralization is characterized by roughly east-west trending “shear” zones, dipping 60° to 80° to the north, and is associated with pyrite, chalcopyrite and sphalerite. To-date, the quartz feldspar porphyry unit and associated contacts with the metasedimentary units have been the focus of exploration activities, with large areas of Tisdale and Deloro metavolcanics yet to be explored, including the Rusk contact zone, which is associated with gold mineralization at the Timmins West Complex, approximately 7 km southwest of the Property.
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