- Silk Road Energy (SLK.H) is expanding the footprint of its Kirkland Lake mining camp
- The Alberta-based energy producer has signed an option agreement to acquire the Grenfell-Four Nations Gold Property in Ontario
- The company can earn a 100 percent interest in five claim blocks comprising 5.2 square kilometres in the Grenfell Township
- The claims host multiple gold occurrences according to historical work files submitted to the Ontario government
- There has also been drilling conducted on the property that intersected gold mineralization
- Silk Road Energy is down 15.38 percent, trading at $0.055 at 10:35 a.m. ET
Silk Road Energy (SLK.H) is expanding the footprint of its Kirkland Lake mining camp.
The Alberta-based energy producer has signed an option agreement to acquire the Grenfell-Four Nations Gold Property in Ontario.
The company can earn a 100 percent interest in five claim blocks comprising 5.2 square kilometres in the Grenfell Township.
The claims are located approximately 8.5 kilometres west of the Macassa Mine near Kirkland Lake, Ontario.
The claims host multiple gold occurrences according to historical work files submitted to the Ontario government.
There has also been drilling conducted on the property that intersected gold mineralization.
Silk Road will pay a private exploration company $50,000 in cash over three years and issue a total of two million shares.
The shares are paid over two years, with one million payable upon closing and 500,000 shares each to be issued on the first and second anniversaries of the closing date.
There are no work commitments on the properties.
The agreement is subject to TSX, regulatory and board approvals.
There has also been drilling, trenching and small-scale mining conducted on the adjacent property that intersected significant gold mineralization.
Silk Road Energy will act as sole operator of the exploration program on the claims.
The vendor will retain a 1.5-percent net smelter royalty on the asset.
One third of this NSR can be purchased by Silk Road for $400,000.
“We now have a land position that has north-south and east-west boundaries in this prolific gold-producing camp,” said Director, Michael Judson.
Silk Road Energy is down 15.38 percent, trading at $0.055 at 10:35 a.m. ET.