The mining newspaper for Alaska and Canada's North
North of 60 Mining News – April 26, 2024
Snowline Gold Corp. April 25 reported another significant step toward solidifying its position in the Canadian gold mining landscape with the consolidation of 100% ownership of the Einarson project.
Exploring seven prospective targets strewn across the Yukon, Snowline's portfolio is split between its flagship Rogue, Einarson, Ursa, Cynthia, and Olympus properties in the Selwyn Basin near Yukon's eastern border with Northwest Territories, and the Tosh and Cliff projects closer to Yukon's western border with Alaska.
Snowline has expanded its already substantial position within the Selwyn Basin with the addition of approximately 61,000 hectares (150,734 acres) through acquisition and about 22,000 hectares (69,190 acres) through staking additional claims, bringing its total package to roughly 360,000 hectares (889,579 acres) within Yukon, Canada.
Entering into a purchase agreement with an unnamed party, Snowline has now consolidated the remainder of Einarson by acquiring the remaining 30% stake, giving the company full ownership of another highly prospective target within the Selwyn region.
"We are thrilled to consolidate the Einarson project and to acquire a full 100% interest in our Jupiter discovery alongside other promising targets," said Snowline Gold CEO Scott Berdahl. "The quantity and scale of the gold targets identified at Einarson through regional baseline work and follow-up prospecting were a big part of our motivation for launching Snowline Gold in 2021."
Sitting immediately north of and contiguously with the Rogue project, which hosts the company's groundbreaking Valley discovery, Einarson consists of two main claim blocks and several additional outlying claim groups covering a combined 61,690 hectares (152,439 acres).
Encompassing multiple kilometer-scale geochemical anomalies associated with stratigraphy prospective for Carlin-type gold deposits, outlined targets at Einarson include:
• Jupiter – an orogenic gold target with abundant mineralized quartz float boulders grading to 25.2 grams per metric ton gold associated with zones of clay alteration in bedrock and a 3,000-meter zone of anomalous gold-in-soils up to 5.3 g/t gold.
• Avalanche Creek – an orogenic gold occurrence discovered in Sept. 2020 along a major fault structure. 22 grab samples of mineralized boulder train averaged 7.8 g/t gold and graded up to 34.2 g/t gold.
• Mars – an orogenic gold occurrence with Carlin potential. Only the southernmost end of a 3,500-meter gold-in-soil anomaly has been drilled, consistently yielding gold mineralization with intervals of up to 0.571 g/t gold over 21.16 meters (poor recovery). Surface channel sampling yielded an interval of 7.09 g/t gold across five meters within a broader 33.5 meters averaging 1.65 g/t gold. Elsewhere on the trend, soil samples grade up to 9.1 g/t gold.
• Misty – a 30-kilometer-long (19 miles) zone of consistently elevated to anomalous gold and Carlin pathfinders-in-soils corresponding to stratigraphy known elsewhere to host Carline-style gold.
• Odd – a pronounced 3,500-meter-long gold and Carlin pathfinder element soil and stream sediment anomaly. To date, surface sampling and limited drilling have failed to explain the anomaly.
"The targets themselves are compelling, and they indicate strong regional gold fertility across Einarson, Rogue and our surrounding projects," said Berdahl. "The results of our phase-one drilling at Einarson's Jupiter target underscore this potential, and we are excited to follow up on that discovery and other targets in the upcoming 2024 exploration season, which will soon be underway."
In addition to the consolidation of Einarson, Snowline acquired Venus, a privately held gold target adjacent to Einarson, 100% interest in several additional claims, and purchase of physical assets in the area.
To acquire the outstanding 30% interest in Einarson, 100% interest in Venus, and 100% interest in several additional claims, Snowline made a cash payment of C$1.2 million (US$878,000) and issued 1.01 million shares to the seller, who will retain a 2% net smelter return royalty on Venus.
While the company has made a mode to expand its holdings, Snowline states that it has not lost sight of its main priority.
"To be clear: our primary focus remains on the expansion and advancement of our Valley gold discovery on the Rogue Project. This district-level consolidation marks the realization of a long-term objective, further bolstering Snowline's exploration pipeline and expanding our opportunity to establish a new Canadian gold camp," said the Snowline CEO. "Following this acquisition, Snowline will have 100% ownership of its entire greater than 3,600-square-kilometer (1,390 square miles) mineral tenure, with no royalties above 1% following buy-down. Our significant land position has the added benefits of reducing regional competition and potential for cumulative impacts, thus streamlining permitting and allowing us to approach exploration and development in a responsible, holistic fashion. We are excited to bring to our shareholders the full discovery upside potential of numerous targets within a long-life exploration portfolio."
In addition to its acquisition, the company announced the completion of a "bought deal" private placement of 3.68 million charity flow-through common shares at C$7.80 (US$5.71) per share for aggregate gross proceeds of C$28.7 million (US$21 million), including C$3.7 million (US$2.7 million) from the full exercise of the underwriters' option.
Snowline also completed a concurrent non-brokered private placement of 405,000 flow-through shares at similar offering price for additional gross proceeds of C$3.2 million (US$1.6 million), maintaining existing shareholder B2Gold Corp. at 9.9% interest in the company.
"The present financing provides Snowline the bandwidth to significantly expand the scope of our upcoming field season, allowing us to simultaneously pursue exploration at our Rogue project's Valley target alongside an aggressive regional drill campaign," said Berdahl. "We continue to be impressed both by the results from Valley and from our pipeline of regional targets, and we are keen to unlock value through discovery and efficient advancement of what we see as an emerging Canadian gold district."
Reader Comments(0)