- Gossan Resources (GSS) has signed an agreement to wholly acquire the Gander gold property in northeast Newfoundland
- Under the terms of the deal, the company will issue 2.1 million common shares to the vendors and reimburse staking costs to the value of C$21,125
- The vendors will also retain a two per cent net smelter return royalty on the property, half of which may be purchased by Gossan for $1 million
- The property sits next to New Found Gold’s Queensway Project, which previously returned drilling results of 19 metres at 92.86 grams per tonne of gold
- Gossan Resources (GSS) is currently steady at 8.5 cents per share
Gossan Resources (GSS) has signed an agreement to wholly acquire the Gander gold property in northeast Newfoundland.
Under the terms of the deal, Gossan will issue 2.1 million common shares to the vendors and reimburse staking costs worth C$21,125. The vendors will also retain a two per cent net smelter return royalty on the property, half of which may be acquired by Gossan for a one-time fee of $1 million.
The 9,050-hecatre property lies immediately next to New Found Gold’s Queensway Project which, according to a release dated July 31, 2020, returned a drilling intercept of 19 metres at 92.86 grams per tonne of gold, including six metres at 285.2 grams per tonne of gold.
The Gander property has substantial existing infrastructure and is transected by the Trans-Canada Highway and Route 330, with additional gravel roads and logging trails offering further access.
While largely under-explored, the property sits along a major geological contact between the Dunnage zone to the west and the Gander zone to the east.
The region was previously explored for the presence of base metals until Noranda undertook a till sampling program in the 1980s, which assisted in developing the region as a potential gold producer.
Douglas Reeson, President of Gossan Resources, said the company’s management is in the process of formulating a work program for later this year.
“We are pleased to get our new gold initiative out of the gate with a highly prospective gold project in Newfoundland near the recent discovery hole by New Found Gold,” he added.
Gossan Resources (GSS) is currently steady at 8.5 cents per share, as of 1:54pm EDT.