PriceSensitive

Troubadour Resources (TSXV:TR) to acquire high-grade gold project in British Columbia

Mining
TSX:TROUF
07 October 2020 09:00 (EST)

Troubadour Resources (TR) has signed an option agreement to wholly acquire the Texas property in the Greenwood Mining District of British Columbia.

Located within the Beaverdell mining camp, the 1,766-hectare property lies in close proximity to the past-producing Beaverdell Mine, which operated from 1896 to 1991.

The Texas property hosts a number of existing showings, including two old mines and several trenches, pits and adits that expose a variety of mineralised veins.

In a region predominantly known for silver production, the property presents a unique opportunity as a potential gold producer.

Previous grab sampling work at the Door vein returned two significant results, including 78.84 grams per tonne of gold, 319 grams per tonne of silver and 8 per cent copper, as well as 241.96 grams per tonne of gold.

As consideration for the acquisition, Troubadour Resources will issue the vendor a total of C$85,000 in cash and three million common shares over a two-year period.

The vendor will also retain a 1.5 per cent net smelter royalty on the Texas property, two thirds of which – or one per cent – may be purchased by Troubadour for $1 million at any time until the launch of commercial production.

Geoff Schellenberg, President of Troubadour Resources, said he is excited to add such a quality gold asset to the company’s portfolio.

“The consolidation of this land package that contains numerous historic gold showings and workings presents a unique opportunity for Troubadour shareholders to benefit from the rising gold market,” he added.

The company now intends to mobilise field crews to the property to carry out mapping and sampling activities ahead of a maiden drilling program. This work will focus on the Doors and Cabin targets, as well as other mineral occurrences that were the subject of historic mining.

Troubadour Resources (TR) is currently up 128.57 per cent and is trading at $0.08 per share at 11:00am EDT.

Related News