A gold project in Ontario’s Chester Twp. has caught the attention of Nord Pacific (NORPF-Q), an Australian-based copper producer exploring for gold and base metals in Australia, Papua New Guinea and North America.
The company recently signed a letter of intent with property-owner Young-Shannon Gold Mines (YSG-V) to form a joint venture, whereby Nord Pacific can earn up to a 65% interest in the Ontario project by spending $4.8 million in the next 42 months. The joint venture agreement, which is subject to due diligence, also outlines plans to acquire additional properties and establish gold-mining operations in the region.
Young-Shannon holds a 100% interest in a contiguous block of 11 patented mining claims in west-central Chester Twp., 70 miles south of Timmins and 95 miles northwest of Sudbury.
Situated in the Swayze greenstone belt, the claim block was previously explored in the 1930s, when work focused on several gold-bearing zones.
More recent work, conducted by various companies in the 1970s and 1980s, included limited drill programs. While this work returned gold values of economic interest, outlining minable tonnage proved difficult, owing to complex geology (folding and faulting) and nugget effect.
Young-Shannon resumed drilling earlier this year, focusing on the C-Gold zone. The structure is reported to host 1.1 million tons grading 0.2 oz. gold per ton.
Within the C-Gold zone is a higher-grade area called the C-Prime Gold zone, which was last reported to host 695,787 tons at an average grade of 0.34 oz.
gold. That zone is also open for expansion.
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