79 Resources Ltd. [SNR-CSE] said Friday it has closed the previously announced acquisition of Buck Gold Inc., a privately-owned Vancouver exploration company which controls approximately 1,200 square- kilometre of mineral properties near Houston, British Columbia.
The mineral properties controlled by Buck gold are contiguous to area holdings of Newmont Corp., [NGT-TSX, NEM-NYSE], Teck Resources Ltd. (TECK.B-TSX, TECK.A-TSX, TECK-NYSE) and Copper Mountain Mining Corp. [CMMC-TSX], and located on the Nechako Plateau, one of the most prospective mining investment regions in British Columbia.
They also surround Sun Summit Mineral Corp.â€™s [SMN-TSXV, SMREF-OTCQB] Buck deposit, which has been generating significant market attention through recent drill intercepts.
The 33,000-hectare Buck Project is a high-grade a bulk tonnage gold and silver property where recent drilling has returned long continuous zones of gold mineralization, including 186 metres of 0.85 g/t gold equivalent (AuEq), including 109 metres of 1.15 g/t gold equivalent. The Buck project is located in close proximity to several former operating mines, including the Equity Silver and Huckleberry mines.
It is also thought to be geologically similar to Artemis Gold Inc.â€™sÂ [ARTG-TSXV] Â Blackwater Gold Project, which is located 170 kilometres to the southeast.
â€œThe acquisition of Buck Gold is transformative for 79 Resources,â€™â€™ said 79 Resources CEO Steven Feldman. â€œWe are excited for this generational opportunity to acquire such a sizeable and highly prospective land package ideally located in a mining-friendly jurisdiction,â€™â€™ he said.
â€œHelicopter-based geophysical work and ground-based follow-up by Buck Gold has defined a number of immediate high priority targets adjacent to Sun Summit that 79 Resources will move quickly to further explore once the transaction closes,â€ Feldman said recently.
To complete the acquisition of all the outstanding shares of Buck Gold, 79 Resources agreed to issue 80 million to the vendor Ryan Kalt. The shares will be subject to customary escrow provisions imposed by the Canadian Securities Exchange. The properties held by Buck Gold are subject to a 2.0% gross royalty in favour of Kalt.
Sun Summit recently launched a new phase of drilling at the Buck Property. The company said 30 holes are planned in the initial phase. The company said the program will systematically investigate the structural controls and spatial distribution of high-grade gold intersected in multiple holes in early 2021, stepping out around the Trench Zone area (which returned 31.6 g/t gold over 4.0 metres, including 246 g/t gold over 0.5 metres.
Sun Summit has said the drill program aims to expand the footprint of near-surface, bulk-tonnage-style gold intersected in numerous holes in 2020 and early 2021 in the Horseshoe Zone area, which returned 1.07 g/t gold over 109 metres, including 7.17 g/t gold over 5.2 metres.
79 Resources shares were unchanged at 12 cents on Friday and trade in a 52-week range of 25 cents and $0.095.