Puma Exploration Inc. [TSXV-PUMA; OTCQB-PUMXF] has entered into a property agreement to strategically increase its substantial gold landholdings at the Williams Brook Gold Project, New Brunswick. The newly optioned TIMM Gold Property, with grab samples grading up to 267 g/t gold and 362 g/t gold marks another step towards Puma’s development of a major gold camp in Northern New Brunswick.
Marcel Robillard, President and CEO, commented, “Puma has an established relationship with local prospectors who frequently approach us with interesting properties. We saw an opportunity with the TIMM property. It is only 10 km from our St-Quentin facility, hosts the same rocks as Williams Brook, and work done by previous operators highlighted its potential. While waiting for the assay results of our 2023 drilling at Lynx, we completed our due diligence on the property with a preliminary surface exploration program. We are excited about the samples’ exceptional gold grades similar to the ones discovered at Lynx in 2021. This acquisition is part of our strategy to build a gold camp in the region, and we look forward to applying our successful discovery model at TIMM in the near future.”
The property is located only 10km east of St-Quentin, where Puma’s has its exploration office, comprises 223 claims covering 4,840 ha. Local prospector Tim Lavoie made a gold discovery on the property in 2014. He subsequently optioned it to different junior exploration companies over the years. They completed some surface exploration work – trenches, soil sampling, till and stream sampling and four diamond drill holes that returned several anomalous gold zones and highlighted the potential for more discoveries.
The property hosts the same geology as Williams Brook and has historically been divided into three gold zones: the Bonanza, Dome, and South zone. The Dome and Bonanza vein system is hosted in strongly foliated sericite schist with the gold mineralization typically associated with goethite/limonite as at the Lynx Gold Zone. So far, the three zones show a strike length of 625 m with samples varying from anomalous (0.1 g/t gold) up to 362 g/t gold.
To acquire a 70% interest in the TIMM property, PUMA will issue 250,000 shares to the vendor and complete $100K worth of work over two years. Having earned a 70% interest in the TIMM Property, Puma will enter into a JV with the seller, carrying the seller for the first $1M of work expenditure. Afterwards, the seller can retain its 30% by contributing its share of the exploration expenses. Should the seller’s interest in the property fall below 10%, its interest will be converted to a 10% return on net profits from Mine Production.
Puma will make a $25,000 cash payment to the seller upon a positive preliminary economic assessment (PEA to be defined in the definitive agreement). Puma will make a $50,000 cash payment to the seller upon a positive feasibility study (FS to be defined in the definitive agreement). Puma will make a one-time cash payment of $100,000 to the seller upon commercial production (commercial production to be defined in the definitive agreement). The seller will retain a 2% NSR (net smelter return) royalty on any commercial production from the property. Puma may purchase 50% of the NSR royalty (or 1%) for $1 million at any time. Puma retains the right of first refusal on the seller’s remaining 1% NSR royalty.
The transaction is subject to the TSX Venture Exchange approval.
Since the beginning of September, Puma’s technical team has continued to prospect, trench and strip along the Lynx Gold Trend over its favourable 4 km extension. More than 500 grab samples have been collected (assays pending) to prioritize drill targets for the second phase of the 2023 drilling program.
Puma’s flagship Williams Brook Gold Project comprises six claims blocks covering more than 44,650 ha in Northern New Brunswick, an established and mining-friendly jurisdiction near paved roads and with excellent infrastructure nearby.
Since 2021, and with less than $10M of exploration investment, Puma has made multiple gold discoveries at the Williams Brook property and believes that the property hosts a large orogenic/epithermal gold. Puma’s ongoing exploration programs are focused on building a gold camp in Northern New Brunswick.
Puma has a long history in Northern New Brunswick, having worked on regional projects for over 15 years.