Solstice Gold Corp. [SGC-TSXV] said Tuesday it is launching a phase one drilling program at its 100%-owned Red Lake Extension (RLX) project, which is located in the northwest corner of the Red Lake, Ont., gold mining camp.
The company said the 5,000-metre (10-15 hole) program will test three main target areas at an average depth of 250 metres below surface. The target areas, including Central Target, South Fold Target and North-Central Target, are the initial summer target areas and exclude winter-accessible areas of the project.
Solstice recently announced a $3.9 million deal to acquire a portfolio of royalty and property interests in 86 projects located in Ontario and Quebec.
Solstice bought the properties from a group of vendors that includes Perry English, an award-winning Canadian prospector who has been extensively involved in Ontarioâ€™s mineral exploration industry for 35 years.
The 86 projects that Solstice agreed to acquire include 45 that are currently under option to third parties, of which 42 include a provision for net smelter return royalty interests (subject to the exercise of options), as well as 10 stand-alone NSR royalty interests,
Transaction highlights included 30 additional 100%-owned properties that are available for option or sale.
The deal included a buyout of the companyâ€™s RLX (Red Lake Extension) project including an NSR royalty. As a result of the transaction, RLX became 100%-owned and royalty free.
â€œAfter a year of systematic technical work by our team, we are excited to reveal several well-developed drill targets, which further demonstrate the potential of the property,â€™â€™ said Mike Timmins, who was recently named CEO at Solstice.
â€œWe will test this potential with the current-drill program and continue to leverage our technical edge, as we embark on a campaign to explore, for the first time, 16 kilometres of prospective gold-bearing structure in Red Lake,â€™â€™ he said.
RLX hosts a road-accessible, 16-kilometre long largely unexplored extension of the Red Lake Greenstone Belt located 27 kilometres north of the community of Red Lake.
â€œWe believe that our RLX project has all the attributes to host gold mineralization in a gold camp that continues to yield new gold discoveries,â€™â€™ said Solstice Chairman David Adamson.
â€œOur focused and integrated exploration program has identified several compelling and significantly sized target areas, which we look forward to testing with our first drill program in this area of the Camp,â€™â€™ he said.
Meanwhile, on June 20, 2022, Solstice shares closed at 11 cents and currently trade in a 52-week range of 25 cents and $0.09.