BTU Metals starts Red Lake drilling, shares advance
BTU Metals Corp. [BTU-TSXV] said Wednesday it has commenced drilling on the Pakwash North target area of its Dixie Halo project near Red Lake, Ont.
BTU shares advanced on the news, rising 11% to 10 cents and now trades in a 52-week range of 17 cents and $0.065.
The Dixie Halo project shares over 35 kilometres of common boundaries with Great Bear Resources Ltd. [GBR-TSXV] and its 100%-owned Dixie Project. Recent discoveries at Dixie prompted Kinross Gold Corp. (K-TSX, KGC-NYSE) to launch takeover agreement with Great Bear, valued at $1.8 billion.
Kinross has said it is going ahead with the deal in the belief that Dixie has significant potential to become a top tier deposit that could support a long-life mine complex and bolster Kinross’ long-term production outlook.
Back in June, 2021, BTU shares rallied after the company said it has discovered compelling evidence of a notable volcanogenic massive sulphide (VMS) target at Dixie Lake Halo. The company said the newly discovered prospective area has been named the TNT Target.
Meanwhile, BTU Metals said drilling at Pakwash North will focus on untested high quality geophysical targets with potential to host base metal (copper-zinc) and gold-silver mineralization in the eastern part of the 230 square kilometre Dixie Halo property area.
BTU said drilling will cover ground immediately proximate to the TNT area as well as on the Pakwash North property that was acquired in 2021 via an earn-in agreement.
BTU has an option to earn an 80% interest in the 3,000-hectare Pakwash North property which lies adjacent to the east and southeast boundaries of Dixie Halo. To earn that interest from GoldON Resources Ltd. [GLD-TSXV], BTU agreed to spend $1 million over 36 months, deliver cash payments of $75,000 and issue 1.4 million shares.
BTU has said Pakwash North appears to straddle major structures, and covers favourable geology for gold and base metal mineralization and is located immediately west of the historic Griffith iron mine.
Only one short drill hole has ever been reported on the Pakwash property.
“This is an exciting time for BTU shareholders as we initiate drilling in this completely untested area east along trend of the Great Bear discoveries,” said BTU President Mike England. This maiden drill program is focusing on targets we feel may also be some of the most geologically interesting targets identified to date for additional TNT-copper zinc silver mineralization along with potential gold on the property,” he said.
BTU said its Dixie Halo project is close to all the infrastructure needed to build and operate a mine, with highways and roads on the property, as well as powerlines and a natural gas line crossing the property. BTU assembled its land package via six separate transactions and stake claims following the Great Bear discoveries in 2018.