BTU Metals Corp. [BTU-TSXV] said Friday November 23 that it picked up more ground in the emerging Dixie discovery area of Red Lake, northern Ontario via the acquisition of Burgundy Exploration Corp.
As a result, BTU said it has been able to acquire an additional 4,163 hectares of prospective and geographically targeted mineral claims. The additional mineral claims to be acquired through the Burgundy acquisition will be referred to as the Dixie Halo Southwest extension.
On Friday, BTU shares rose 25% or $0.02 to 10 cents on volume of 238,399. The 52-week range is $0.035 and 14 cents.
BTU has attracted investor attention because Dixie Halo adjoins the northern and eastern boundaries of Great Bear Resources Corp.’s [GBR-TSXV] Dixie Lake Project, where Great Bear recently reported a high-grade gold discovery in drill core assaying 16.35 metres of 26.91 g/t gold and 7.0 metres of 44.47 g/t gold in two holes on the Hinge Zone.
Great Bear has secured the backing of Bay Street financier Rob McEwen and McEwen Mining Inc. [MUX-TSX]. They collectively own 18.8% of Great Bear on a partially diluted basis following their joint participation in a $10 million private placement financing.
In a November 6, 2018 press release, BTU said its personnel have been actively working with historical reports and data from the Red Lake area and have highlighted priority targets for immediate action. In the same press release, the company said it now has a team of geologists and prospectors on site to follow up on these targets and help to guide drone operators also now on site.
Under the agreement announced on Friday, BTU is picking up the additional ground by acquiring 100% of the shares of Burgundy Exploration from an arms-length vendor in exchange for 3.6 million shares of BTU. A pre-existing 2% gross net smelter royalty is applicable on the tenure being acquired. However, BTU is not making any cash payments and is not under any work obligations other than the necessary spending required to meet normal government assessment reporting obligations.
BTU Metals is a Canadian junior exploration company focused on Dixie Halo and its Galway Gold Project in Ireland.
The Galway project, located 45 km northwest of the city of Galway, has been targeted for orogenic and low-sulphidation mineralization.
BTU said the Dixie Halo property wraps around the northeastern and eastern portions of Great Bear’s Dixie Project. The northwestern portion of the Dixie Halo property is approximately 2.3 km northeast of Great Bear’s North West step-out target and approximately 4.5 km northeast of the Hinge Zone.
Portions of the Dixie Lake property were actively explored as recently as 2008 with two drill holes located within 250 metres of the Dixie Halo property boundary.
The company said the property has excellent logistics and is cut by Ontario provincial highway 105.
BTU recently said it has decided to commence drill permit applications and looks forward to fast-tracking a maiden drill program at Dixie Halo in the New Year. Data from a drone survey that covered approximately 350 line-km and over 1,700 hectares near the northern property boundary with Great Bear is currently being processed in Vancouver, the company said.