- Ethos Gold (ECC) has signed an agreement with New Dimension Resources to earn up to a 70 per cent interest in the Savant Lake gold property
- Under the terms of the deal, Ethos will pay C$200,000 in cash and issue 8 million common shares to New Dimension, and will assume $2 million in exploration expenses
- A further $50,000 in cash and two million shares will be issued upon confirmation of a mineral resource exceeding one million ounces of gold
- The company now plans to conduct a high-resolution helicopter-based aeromagnetic survey in October this year
- Ethos Gold (ECC) is currently up 1.92 per cent and is trading at 26 cents per share at 1:14pm EDT
Ethos Gold (ECC) has signed an agreement with New Dimension Resources to earn up to a 70 per cent interest in the Savant Lake gold property.
Located in the Savant Lake Greenstone Belt, roughly 240 kilometres northwest of Thunder Bay, Ontario, the property covers 22,900 hectares and has the potential for both high-grade iron formations and shear-hosted gold deposits, as well as base metal-rich massive sulfide deposits.
To date, six high-grade surface occurrences have been identified within a 60-kilometre strike length of under-explored iron formations. In addition, two shear-hosted gold structures have been found, along with a number of base metal targets. Many of these targets are yet to be drill tested.
As consideration for the acquisition, Ethos will issue to New Dimension a total of C$200,000 in cash and 8 million common shares over a three-year period. The company will also be required to assume an aggregate of $2 million in exploration expenses.
A further $50,000 in cash and two million shares will also be issued upon confirmation of a mineral resource exceeding one million ounces of gold.
Rob Carpenter, Chief Technical Adviser to Ethos Gold, said the geologic setting and scale of the Savant Lake project offers significant discovery potential.
“Savant Lake is a district scale target that has demonstrated both iron formation and shear zone hosted gold mineralization over tens of kilometres of prospective strike length.
“In addition to advancing some of the established target areas, we will start with a property wide review of data and ground truthing with the intention of vectoring in on additional target areas,” he added.
Ethos now plans to conducts a high-resolution helicopter-based aeromagnetic survey over the property, which has been scheduled for October this year. The results of this work will be integrated with existing data to define priority targets for a field work program next year, with drill testing to follow thereafter.
Ethos Gold (ECC) is currently up 1.92 per cent and is trading at 26 cents per share at 1:14pm EDT.