Pacton Gold Inc. [PAC-TSXV; PACXF-OTC] said Thursday February 14 it has struck a deal to purchase additional mineral claims in the Red Lake District of northwestern Ontario. The property consists of 17 mineral claims, and will increase the company’s land position to approximately 15,000 hectares.
Under an agreement, Pacton can purchase 100% of the property by paying $15,000 and issuing 75,000 shares to the vendor. The property is subject to net smelter return royalties of 2%, half of which the company can reacquire for $200,000.
Pacton shares advanced on the news, rising 6.4% or $0.015 to 25 cents on volume of 376,000. The shares trade in a 52-week range of 23.5 cents and $1.02.
On Thursday, Pacton said its Red Lake mineral claims are strategically located between Pure Gold Mining Inc.’s [PGM-TSXV] Madsen property, including the Wedge Zone, and Great Bear Resources Ltd.’s [GBR-TSXV] Dixie Lake gold discovery.
The Red Lake area is an established mining district with more than 29 million ounces of high-grade gold production reported to date.
Pacton said its Red Lake project has similar host geology and gold controlling D2 structures that also characterize the high-grade discoveries at the Dixie Lake Project. A detailed helicopter magnetic survey is underway to identify D2 structures that are thought to have significant control on gold mineralization in the Confederation Assemblage as observed in recent drilling results from Great Bear’s Dixie Lake Project.
Pacton said it is currently compiling historical data and formulating plans for exploration work in 2019 to advance the project.
News of the Red Lake purchase comes after Pacton said it recently became the third largest land holder in Australia’s Pilbara Gold Rush. The company also said it has significantly expanded its gold-bearing Conglomerate portfolio.
In a May, 2018 press release, Pacton said it had entered into a binding letter of intent to acquire 100% of the shares of Drummond East Pty Ltd. an arms-length Australian exploration company which is wholly-owned by Impact Minerals Ltd. [IPT-ASX].
Drummond East holds seven granted tenement licenses, comprising a total of 1,126 square kilometres. of strategic conglomerate hosting exploration properties.
The seven 100% owned licenses in the Pilbara region were staked after an extensive review by Impact, following the discovery of gold in conglomerates by Artemis Resources Ltd. [ARV-ASX].
The Artemis find indicated that a significant breakthrough had been made in the search for conglomerate-hosted gold deposits of a similar age to the Witwatersrand Basin of South Africa in Pilbara. Impact aggressively applied for available prospective ground in the early stages of the Pilbara staking rush.
As the third largest landholder in the Pilbara Craton, Pacton’s strategy is to aggressively explore the Pilbara for eluvial and orogenic gold deposits. The company has a strategic processing alliance with Artemis Resources’ Radio Hill processing plant. Pacton said it is currently planning the remainder of its 2019 exploration program, which shall include field work on all of its Pilbara tenements.