Pacton Gold Inc. (TSX-V: PAC) (OTC: PACXF) (FSE: 2NKN) is pleased to announce that it has entered into a binding letter of intent with TomaGold Corporation (TSX-V: LOT), whereby the Company will acquire all of TomaGold’s interest, being 39.5%, in a joint venture it currently holds with Evolution Mining and Newmont Corporation (formerly GoldCorp when TomaGold entered into the joint venture) on the Sidace Lake Property. Located in the Red Lake District, Ontario, Sidace Lake is contiguous to Pacton’s current claim package (Figures 1 and 2) and is an advanced gold project with over 81,600 meters if historic drilling. Pacton will enter the joint venture as project Operator and plans to aggressively expand the mineralized zones at the project with exploration drilling.
About the Sidace Lake Property
The Sidace Lake Property is located 28 km north east of the town of Red Lake, at the northern extent of the Red Lake Greenstone belt. Historic drilling highlights are summarized in Table 1. Pacton intends to commence a expansion drilling program at the Sidace Lake Property while continuing the ongoing exploration program at its current Red Lake properties.
Dale Ginn, Executive Chairman commented “This is a great opportunity for Pacton. Sidace Lake is an exciting gold project with a clear path for potential growth. It is directly adjacent to our existing Red Lake land package and we look forward to entering the JV, as operator, and working with Evolution Mining to advance the project.”
Table 1. Historic drill hole highlights from the Sidace Lake Project
Hole ID | Year | From (m) | To (m) | Length (m) | Au (g/t) | Zone |
RL-06-136 | 2006 | 553.0 | 576.0 | 23.0 | 24.9 | Main Discovery Zone |
RL-07-139 | 2007 | 335.2 | 338.8 | 3.6 | 36.5 | Upper Duck Zone |
RL-06-112 | 2006 | 523.0 | 541.0 | 18.0 | 11.7 | Main Discovery Zone |
RL-06-136 | 2006 | 691.0 | 692.0 | 1.0 | 83.2 | Main Discovery Zone |
RL-05-77 | 2005 | 249.0 | 253.0 | 4.0 | 12.0 | Upper Duck Zone |
RL-06-128 | 2006 | 468.0 | 500.0 | 32.0 | 5.8 | Main Discovery Zone |
RL-05-102 | 2005 | 252.0 | 254.0 | 2.0 | 11.3 | Anderson Zone |
RL-05-104 | 2005 | 40.0 | 43.0 | 3.0 | 4.0 | Anderson Zone |
Terms of the LOI
Under the terms of the LOI, which will be formalized by a definitive agreement to be entered into between the parties, the Company must pay and issue the following to TomaGold:
TomaGold must receive the written approval of Newmont Corporation to the acquisition prior to entering into the definitive agreement.
The transaction is subject to the acceptance of the TSXV.
About Pacton Gold
Pacton Gold is a Canadian exploration company with key strategic partners focused on the exploration and development of high grade conglomerate and orogenic gold properties located in the district-scale Pilbara gold rush in Western Australia and the Red Lake District, Ontario.
Figure 1. Red Lake property map showing the location of Pacton’s mineral claims and the Sidace Lake joint venture. (CNW Group/Pacton Gold Inc.)
Figure 2. Geology map of the Sidace Lake project and Pacton’s Golden Loon property showing the location of the Main Discovery Zone, Upper Duck Zone, and Anderson Zone. (CNW Group/Pacton Gold Inc.)
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