St. James Gold acquires Newfoundland gold play claims

St. James Gold Corp. [LORD-TSXV; LRDJF-OTC] reports that the TSX Venture Exchange has accepted for filing an option agreement dated December 11, 2020, between the company and Herb M. Froude (the vendor), whereby the company may acquire a 100% interest in and to 29 minerals claims in the Grub Line region of Newfoundland.

Consideration, staged over a three-year period, is $50,000 cash, 200,000 common shares and $50,000 in work expenditures. The vendor retains a 2% net smelter return (NSR) royalty, of which the company may repurchase 1% for $1-million cash.

The Grub Line claims are located in the north-central part of Newfoundland within a new prolific gold district. The property represents 1,791 acres adjacent to New Found Gold Corp.’s Queensway North Project and where several other companies are making new high-grade gold discoveries.

George Drazenovic, CEO of St. James Gold, stated: “With recent shallow, high-grade, coarse visible gold discoveries nearby, proximity to the Queensway North Project and strategic location within these fault zones, we believe the company is well positioned to provide shareholders a prime environment for discovery in one of the last easily accessible gold exploration districts in the world. Given the many spectacular gold intersections published by New Found Gold in recent weeks, the company will look to pursue a program of geological mapping, soil, till and bedrock geochemical sampling and shallow drilling to bedrock on gold responses. While the strike length of the veins hosting gold mineralization continue to grow in the region, gold exploration in this area is still in its early stages and the details of control on mineralization is somewhat unknown until extensive drilling has taken place. We intend to pursue a program to consolidate all available historic data, initiate a work program with the intention of developing drill targets in the coming months and ultimately enhance shareholder value.”