Phoenix Global Mining Ltd (Phoenix), the AIM quoted, North American-focussed base and precious metals exploration and development company, has entered into an exclusive option to acquire 80% of the high-grade Gordon Lake gold property in the Northwest Territories, Canada, from ExGen Resources Inc.
CEO of Phoenix Global Mining Ltd, Dennis Thomas, said: “I am pleased to report Phoenix’s further collaboration with ExGen and we look forward to creating value at the Gordon Lake property in Canada, which we have considered to have significant exploration merit for some time. We have a strong team of geologists and consultants in the company who can add value at Gordon Lake.”
“The region has been a prolific gold producer in the past and the Gordon Lake ‘footprint’ is similar to other significant historic gold producing operations in the area. Exploration on the property to date has concentrated on only 4 of 17 identified zones with gold mineralisation open at depth, making it a potential low-cost underground gold mine. The acquisition of Gordon Lake reinforces our focus and investment into the safe jurisdictions of North America in a most cost-effective manner and also continues to consolidate the close relationship that we have with ExGen Resources Inc.”
Background: Gordon Lake
The Gordon Lake gold property consists of two mining leases covering an area of 609 ha on the northern edge of Gordon Lake, approximately 110 km northeast of Yellowknife in the Northwest Territories of Canada.
Gold had been discovered near the Great Slave Lake in the 1890s but significant gold exploration in the area only started in 1935. In 1938 the Con mine started production and Giant mine in 1948. In 1950 the Discovery mine located 84 km north of Yellowknife came on stream.
At Gordon Lake, the shear zones have the same geological footprint as Con, Giant and Discovery. The zones explored to date are approximately 140 m long, 1 – 11 m wide and open at depth. The deepest hole to date is 246 m in the No 9 Vein of the South Zone and open at depth in all 4 zones. The other 13 known zones have yet to be assessed.
Initial work plan
Phoenix will carry out a preliminary detailed assessment of Gordon Lake. The objective over the medium term will be to design and cost a field work programme to generate measured and indicated resources over a 2-3-year period to justify a small high-grade underground mine.
Terms of the agreement
The company has paid ExGen an initial US$25 000 to secure the option over 80% of the project. Exercise of the option requires Phoenix to issue 2 million shares in Phoenix to ExGen within 90 days of the option, and to spend a minimum of US$250 000 on the project within twelve months of the option. In addition, the company has agreed to pay an annual payment of US$25 000 for the first two years, and US$50 000/yr thereafter, until completion of the BFS.
ExGen is to retain a 20% carried interest until construction and a 2.5% net smelter return (NSR) from commercial production.