Canadian-listed Pacton Gold (TSX-V:PAC) has further increased its footprint in the Pilbara acquiring a portfolio of exploration licenses and mining leases from privately-owned Gardner Mining for around CAD$2 million in cash and shares.
Pacton has entered into a binding letter of intent to acquire 100% of both the Yandicoogina and Boodalyerrie projects, consisting of two granted mining leases and three granted exploration licenses covering 146.80 square kilometres.
Yandicoogina includes ~4.7 km of prospective strike defined by structurally controlled quartz veins host to extensive historical gold workings. Significant rock chip samples within the project range up to 199.7 g/t gold.
Meanwhile, Boodalyerrie is underlain by approximately 25 square kilometres of sericite and silica altered granite with extensive quartz veining. Around 2.3 km of strike of the contact between Hardey Formation and Mount Roe Basalt occurs within the project. Historical high grade channel sampling include 3m at 88.6g/t gold and rock chips of up to 200g/t gold.
The acquisition of the Yandicoogina and Boodalyerrie Gold Projects provides a significant increase in the scale of exposure to the Pilbara region both in relation to conglomerate and structurally controlled gold systems,” Pacton Gold Interim President and CEO Alec Pismiris said.
“The high-grade nature of structurally controlled gold mineralisation across an extensive strike length between the two Projects provides a compelling value proposition.
“We look forward to working closely with the Gardner team, as we commence the implementation of exploration programs across these particularly exciting projects.”
Under the terms of the LOI, Pacton will purchase the projects by paying Gardner Mining CDN$25,000 and issuing to Gardner Mining 3 million common shares of the company.
Gardner Mining – which have extensive local operating history within the Pilbara region – will work closely with Pacton as required to maximize the ongoing development of their existing project portfolio and to identify further value accretionary opportunities.
Pacton will undertake field reconnaissance of the high grade historical workings across both projects, confirmatory mapping and systematic sampling across defined prospect areas, ranking of each of the prospective targets in terms of further exploration, submissions of permitting to facilitate drilling and metal detecting to identify the presence of surficial gold.