GoldMining to acquire further gold property near Yellowknife gold project

The YGP has been the subject of substantial drilling, underground development, metallurgical testwork and historic gold production from the high-grade Discovery Mine, which the company acquired in July 2017. 

Agreement

According to the agreement, GoldMining will pay US$50 000 cash and issue US$38 000 in common shares of GoldMining on closing and an additional US$100 000 in cash or GOLD Shares, at the company's discretion, on the first anniversary of the closing date, in consideration for the property. The number of GOLD Shares issuable shall be based on the volume-weighted average price of GOLD Shares on the TSX Venture Exchange for the ten trading days immediately prior to the date of such payment. GoldMining granted the Vendor a 1% net smelter royalty with respect to the N1 and N2 claims upon commercial production. 

The transaction is subject to customary closing conditions, including, among other things, receipt of requisite approvals. The parties currently expect closing to occur by the end of May 2018.  

Narrow Lake

Narrow Lake was part of the Morris Lake Project that was explored by Viking Gold Exploration Inc. from 2009 – 2010. Exploration programmes included geological mapping, rock and lake sediment geochemistry, geophysics (ground magnetic and electromagnetic surveys) and shallow diamond drilling (2539 m in 12 holes), which identified several conductors on strike with the Ormsby gold deposit.  

According to GoldMining, the property has potential for both, bulk mineable gold mineralisation as outlined at the Ormsby deposit, located approximately 300 m to the northeast, and high-grade gold mineralisation, as mined from underground at the Discovery Mine located 3 km to the northeast. The Ormsby deposit was the focus of extensive exploration by previous operators, including surface and underground drilling (120 760 m), underground development (1579 m), bulk sampling and metallurgical testwork. 

The Discovery Mine was in operation from 1949 – 1968 with estimated production of 1 million oz of gold. Reference to historical production at the Discovery Mine is for informational purposes only and is not indicative of the company?s potential future results at the YGP.  Future exploration programmes would be designed to examine the potential for these styles of mineralisation on the YGP and at Narrow Lake.

Shares for Debt

Through a subsidiary, the company has entered into a debt settlement agreement and will issue 34 188 GOLD Shares in satisfaction of US$40 000 of debt owed by the subsidiary to an arm's length creditor, at a deemed price of US$1.17 per GOLD Share.

Read the article online at: https://www.globalminingreview.com/mining/27042018/goldmining-to-acquire-further-gold-property-near-yellowknife-gold-project/