Power Metal Resources plc has exercised its option to acquire the Coco East property located on the prospective Schreiber-Hemlo greenstone belt, in northwest Ontario.
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Coco East is the second of four gold exploration properties for which the company has an exclusive option to acquire a 100% interest.
The acquisition follows Power Metal’s recent acquisition of the McKellar property.
Chief executive Paul Johnson said that the company was continuing due diligence of the two remaining option properties. bityl.co/5jxN
Preliminary exploration work at Coco East is expected to include remote sensing data interpretation and ground-based fieldwork.
Systematic soil sampling and geophysics are anticipated to yield defined targets for future drill testing.
Coco East sits at the eastern end of a 4.5km long by 1km wide quartz feldspar porphyry intrusion, the ‘Big Duck Lake Porphyry, that could be associated with up to 22 known gold and/or base metal occurrences.
Power Metal added that the property’s geology consists of intrusive porphyry, ultramafic, metavolcanic and metasedimentary rock packages prospective for both gold and volcanogenic massive sulphide (VMS) style copper-lead-zinc-silver mineralisation.
Coco East consists of 30 single cell mining claims, covering some 6.4km², valid until 20 August 2022 after which they can be renewed on an annual basis.
Power Metal will pay C$30,000, C$30,000 in 576,000 company shares for the property.
Renewal of the claims requires an aggregate work spend of C$12,000 (£6,912) prior to the individual renewal dates.
The vendor is a consortium led by local prospector Brian Fowler who also sold the Hemlo North gold project to Power Metal in January 2021. bityl.co/5jxw
In exercising the option to acquire a 100% interest in the Coco East Property, the vendor retains a 2% net smelter royalty on Coco East. Power Metal may purchase 1% of the NSR, at any time, for C$500,000.