BTU Metals Corp. [BTU-TSXV] shares were active Wednesday November 7 after the company said it has commenced a drone survey over certain areas of the Dixie Halo Project in the Red Lake, Ontario mining district.
BTU is attracting 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. The company 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.
BTU shares rallied on the news, rising 20% or $0.02 to 12 cents on volume of 1.9 million. The shares are trading in a 52-week range of 3.5 cents and 13.5 cents.
BTU acquired a 100% interest in the claims comprising the Dixie Lake Halo property from an arms-length party through payments of $85,000 in cash and a share issuance of 750,000 shares over a 4-year period. The vendor retains a 1.5% net smelter royalty, half of which can be purchased by BTU for $500,000 at any time.
BTU Metals is a Canadian junior exploration company focused on developing its Galway Gold project in Ireland and the Shakespeare Gold project in Ontario.
The Galway Project, located 45 km north-west of the city of Galway, has been targeted for orogenic and low-sulphidation mineralization. The Shakespeare property is located in the Sudbury Mining Division and hosts the historic Shakespeare Gold Mine, which produced 2,598 ounces of gold between 1905 and 1948.
BTU said the Dixie Halo property wraps around the north-eastern 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. “A complete review of the assessment files will be initiated immediately,” BTU said in a press release.
The company said the property has excellent logistics and is cut by Ontario provincial Highway 105.