- Manitou Gold (TSXV:MTU) has purchased the Shihan property in Ontario
- The property is contiguous with Manitou’s other holdings, which collectively form the company’s Goudreau project
- Manitou will acquire the property in exchange for 1.4 million Manitou shares
- Previous exploration work at Shihan estimated the site contained approximately 120,000 tonnes of mineral resource
- Manitou Gold (MTU) is up 12.5 per cent and is trading at C$0.045 per share
Manitou Gold (TSXV:MTU) has purchased the Shihan property in Ontario in an all-share deal.
Historic drill results include 1.15 metres at 4.9 grams per tonne gold and 1.5 metre at 3.4 grams per tonne gold, and 0.9 metres at 5.1 grams per tonne gold.
The Ontario property, located just in the Rennie Township, is contiguous with the company’s Goudreau project. The consolidated land package of Goudreau now totals some 340 square kilometres.
The Shihan property has already had an estimate prepared on the site in 2011, with indicated resources topping out at 103,124 tonnes and inferred adding another 20,384 tonnes. The site’s mineralisation is mainly made up of a combination of zinc, iron, copper, gold and silver.
However, Manitou is not treating these as valid resource estimates and intends to build its own geological model of the site. The historic estimate is based on the assumption, shared by the majority of the exploration work conducted on Shihan, that the property hosts base metals.
Manitou believes the property has returned structurally controlled gold mineralization, which has not been adequately followed-up.
The company may be onto something, with historic intercepts showing a quartz-rich fracture zone adjacent to or within an east to west trend that moves from the Shihan property onto Manitou’s properties to the west.
Manitou intend to fund the purchase through the issuance of 1.4 million Manitou shares to the unnamed sellers of Shihan.
The Shihan property also has a two per cent smelter fee owing on the property to another unnamed third party.
This royalty may be purchased by the current owners of the property for C$500,000.
Manitou Gold (MTU) is up 12.5 per cent and is trading at 4.5 cents per share.