Transition Metals Consolidates Western Extension of Beardmore-Geraldton Greenstone Belt and Options Property with High-Grade Gold Occurrences
Transition Metals Corp has entered into an option agreement to acquire a 100% interest in 9 contiguous mining claims 75 kilometres north of Thunder Bay and has additionally staked new claims to consolidate 4,560 hectares covering a significantly underexplored extension of the Beardmore-Geraldton Greenstone Belt (see Figure 1). The property, known as the Jolly Gold project encompasses a number of historic high-grade gold (Au) occurrences where grab samples collected by the Company in September 2020 returned assay values of 14.35 g/t Au with 0.7 g/t Ag at Trench 1, and 3.96 g/t Au, 7.9 g/t Ag and 0.64 % Cu at Trench 2. The two historic trenches lie along a northeast trend, approximately 1.3 km from each other.
Transition CEO and President Scott McLean, P.Geo. stated "We are pleased to have assembled another large land position covering a significant, underexplored extension to the prolific Geraldton-Beardmore gold belt. This camp scale exploration opportunity has only seen limited exploration despite its accessible location and its many known historic gold showings. We plan to carry out an airborne geophysical survey followed by a program of detailed mapping, trenching, prospecting and sampling to outline areas with potential large gold system potential in preparation for diamond drilling."
Geologically, the property is underlain by Archean metavolcanic and metasedimentary rocks considered to be associated with an extension of the Beardmore-Geraldton Greenstone Belt (BGB). The belt is composed of a northeast-trending, south-facing sequence of metavolcanic rocks divided into a northern and southern assemblage. The northern assemblage consists of mafic metavolcanic flows overlain by intermediate pyroclastics, and capped to the south by a sulphide facies iron formation. Gold deposits in the BGB such as the 4.6 Moz Hardrock deposit¹ under development by Greenstone Gold near Geraldton are considered classic examples of epigenetic non-stratiform BIF-hosted gold deposits. Other notable deposits within the BGB include the Brookbank (0.6 Moz M&I)², the Sand River and Leitch Mine (past production of 0.9 Moz)³, the Northern Empire Mine and Sturgeon River Mine.
About the Agreement
Transition has entered into an option agreement to earn a 100% interest in claims hosting the sampled showings by issuing $175,000 in cash to the vendors ($25,000 on signing) and by completing an aggregate of $250,000 in work expenditures over a 4-year period. If the Company vests its interest, the Vendors would retain a 2% Net Smelter Return royalty (NSR) with Transition retaining the right to buy back 1% NSR for $500,000 and the remaining 1% NSR for an additional $1.5 million.
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