E2Gold set to drill Ontario gold project
E2Gold Inc. [ETU-TSXV] is set to launch an initial drill program on its Band-Ore project in northwestern Ontario. The company said the 1,000-metre drill program will test historic resources and a geophysical anomaly.
Periodic exploration over the last 90 years, including that by Noranda Mines, has produced highly encouraging rock sample assays, and drill hole trench intercepts in addition to two historic resources, the company said in a press release.
“The purpose of the initial program is to better understand the potential for growth of the Main and No. 4 zones, as well as the potential for new discovery elsewhere on the property,” the company said.
E2Gold is a gold exploration company with a focus on its flagship Hawkins Gold project, which is located about 140 kilometres east of the Hemlo Gold Mine in north central Ontario
Back in October, 2021, E2Gold said it had been granted an option to earn a 100% interest in the Band-Ore property under and agreement with Golden Share Resources [GSH-TSXV]. The property is located west of Thunder Bay, Ont., and hosts two high grade historic resources in the Band-Ore Main Zone (706,000 tonnes of grade 6.86 g/t gold or 155,728 ounces) and the Band-Ore Zone No. 4 (616,000 tonnes of 4.84 g/t gold or 95,668 ounces).
These resources area not considered to be compliant with National Instrument 43-101 standards of disclosure and the company is not treating them as such.
“The Band-Ore property is in an excellent jurisdiction, shares a regional shear zone with Hemlo, and has strong growth potential, as it has been underexplored for 40 years,” said E2Gold CEO Eric Owens. “Our focus remains on the Hawkins Gold Project, but this acquisition fits perfectly with our growing Ontario property portfolio and it has minimal upfront financial commitment.”
The 10-kilometre-long property, located 75 kilometres west of Thunder Bay consists of 16 patented mining claims, one leased mining claim, and 109 staked mining claims in Hagey and Conacher Twp., Ontario. Both the Main Zone and No. 4 Zone are open at depth and along strike.
In order to exercise the option, E2Gold is required to make $2 million in cash payments to Golden Share over the next three years. In addition, E2Gold has agreed to reimburse costs incurred by the optionor in connection with the preparation of a NI-43-101 compliant technical report to a maximum of $35,000. It must also reimburse the optionor for property tax payments.
Meanwhile, the optionor will retain a 2% net smelter return royalty, one half of which may be purchased by the company via future cash payments amounting to $3 million by the fifth anniversary of the date on which E2Gold earns its interest in the property, $5 million at any time between the fifth and 10th anniversary and $10 million thereafter.
On June 13, 2022, E2Gold shares closed at $0.05 and are currently trading in a 52-week range of 30 cents and $0.045.