The Stony Lake project covers 13,625ha and is subject to a 2.0% NSR if the price of gold is US $2,000 per ounce or less and a 3% NSR if the price of gold is $2,000 or greater per ounce.
The project covers approximately 27 km of strike length of the Cape Ray/Valentine Lake trend between Sokoman’s (TSX.V: SIC) Moosehead discovery to the northeast and the Twilight zone discovery to the southwest.
The historical exploration completed on the project is summarized in a National Instrument 43-101 Technical Report entitled “Compilation of Historical Geological, “Geochemical and Geophysical Exploration Work Carried out Over the Stony Lake Epithermal Gold Project, Grand Falls-Bishops Falls Area, Central Newfoundland” prepared by Larry Pilgrim, P. Geo as Qualified Person with an effective date of September 18, 2018.
The Stony Lake property has seen only cursory exploration for gold mineralization. Despite the numerous gold showings and highly anomalous gold geochemical results within and adjacent to the Project area, it was not until Sokoman’s Moosehead discovery that the area’s potential for gold mineralization was realized. Following the Moosehead discovery, several significant gold discoveries have been made in this portion of central Newfoundland.
Historical exploration activities on the Stony Lake project were sporadic and consisted of regional geochemical sampling, limited prospecting & sampling, 10 diamond drill holes (1,142m) on the Flyers Grid, and partial airborne geophysical coverage.
In addition to the Flyers’ area, historical exploration outlined six exploration targets within the Stony Lake property that exhibit a combination of some or all of the following:
- 18 known gold occurrences that exhibit epithermal style alteration and mineralization in bedrock/sub crop with rock grab sample results of up to 15.1 g Au/t,
- Soil, till and lake sediment sampling has identified multiple, coincident, large gold geochemical anomalies,
- Lower-grade (<4 g Au/t) auriferous alteration zones (argillic and silicification),
- Linear quartz-rich zones with gold concentration ranging from highly anomalous to gold values up to 15.1 g Au/t.
Stony Lake East NI 43-101