In 2016 and early 2017, the Company acquired through a combination of staking and option, the Central Newfoundland Gold Project (CNGP) which consists of two separate properties in Central Newfoundland: the Crippleback Lake and East Alder properties. Consideration includes total cash of $35,450 and share payments totaling 600,000 over a three-year option agreement. The vendors will retain a 2% NSR with a buyback of 1% for $1 million as well as a 1% NSR on Sokoman’s contiguous claims with a $500,000 cash buyback of 0.5%.
The properties lie 65 and 25 kms respectively, northeast of Marathon Gold’s 4.2 million ounce Valentine Lake gold project and lie on the same structural trend. Both properties have no previous exploration history for gold. Phase 1 and 2 soil and till sampling as well as prospecting surveys have been completed over both properties that are underlain by sedimentary and intrusive rocks traceable throughout central Newfoundland. Anomalous values in soils as well as strong gold grain counts were received from work on Crippleback and East Alder with locally moderately anomalous gold values from grab sampling, of which at least 20 targets have been identified for possible trenching.