VANCOUVER, Feb. 26, 2019 /CNW/ - Pacton Gold Inc. (TSXV: PAC, OTC: PACXF) (the "Company" or "Pacton") is pleased to announce that it has entered into an acquisition agreement with Frontline Gold Corporation (TSXV: FGC) to acquire additional mineral claims in the Red Lake District, Ontario (the "Property"). These additional mineral claims are located contiguous and to the north of Pacton's current landholdings and extend to within 3 km of Goldcorp's newest #3 production shaft. The Property includes limited historical diamond drilling, including an intersection of 24 g/t Au over 1.0 m completed by SkyHarbour Resources in 2003. With this strategic acquisition, Pacton's expanded land position overlaps with the prolific Balmer Assemblage, known to host significant high-grade mineralization at Pure Gold's Madsen mine and GoldCorp's Red Lake and Campbell mines, historically producing over 20M oz. of gold combined. The Property geology contains the contact between Confederation and Balmer Assemblage rock units as well as folded mafic and ultramafic volcanics with mafic and felsic intrusives also present.
Pacton's Red Lake mineral claims are strategically located between Pure Gold's Madsen property, including the Wedge Zone, and Great Bear Resource's Dixie discovery. The property geology is made up of two key packages known to host significant gold mineralization in the district. The Confederation Assemblage and the Balmer Assemblage host the high-grade gold mineralization at Great Bear Resources' Dixie Project and Pure Gold's Madsen property, respectively. A high-resolution helicopter magnetics survey is underway to identify D2 structures and folding that are proposed to have significant control on gold mineralization in the district.
Pacton Gold is currently compiling historical data and formulating plans for exploration work in 2019 to advance the project.
The Company can earn a 100% interest in the Property by:
- completing a heli-mag survey on the Property; and
- issuing an aggregate of 350,000 common shares and paying a total of $100,000 over a period of two years.
The Property is subject to net smelter return royalties of 2.25%. The Company has the option to purchase a portion of the royalties for $250,000 for each 0.25%.
The transaction is subject to the acceptance of the TSX Venture Exchange.
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.
The technical content of this news release has been reviewed and approved by Peter Caldbick, P.Geo., a director of the Company and a Qualified Person pursuant to National Instrument 43-101.
On Behalf of the Board of Pacton Gold Inc.
R. Dale Ginn
This news release may contain or refer to forward-looking information based on current expectations, including, but not limited to the Company achieving success in exploring its properties and the impact on the Company of these events, including the effect on its share price. Forward-looking information is subject to significant risks and uncertainties, as actual results may differ materially from forecasted results. Forward-looking information is provided as of the date hereof and we assume no responsibility to update or revise such information to reflect new events or circumstances. References to other issuers with nearby projects is for information purposes only and there are no assurances the Company will achieve similar results.
Neither TSX Venture Exchange, the Toronto Stock Exchange nor their Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE Pacton Gold Inc.
For further information: 1-(855)-584-0258 or [email protected]