Labrador Gold (LabGold) has signed an option agreement to fully acquire the Mariposa and Eureka Dome gold projects in the White Gold District of Yukon Territory, Canada, from Pacific Ridge Exploration.
Pending TSX Venture Exchange approval, the acquisition involves payments of C$500,000 and 6,670,000 Labrador Gold shares to Pacific Ridge over four years, with an initial C$100,000 and 800,000 shares due upon approval.
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Labrador Gold must also undertake C$5.4m in exploration expenses within the same period, including C$150,000 in the first year.
Additionally, a positive feasibility study triggers a C$1m payment to Pacific Ridge.
The Mariposa Project carries a 2% net smelter return royalty (NSR), while Eureka Dome has a 1% NSR.
The Mariposa project spans 16,000 hectares (ha) in the White Gold District, roughly 120km south-east of Dawson City.
It consists of 795 claims and is accessible by fixed-wing aircraft and winter road, and is located 15km east of the under-construction Northern Access Route.
Key elements at Mariposa include six known gold occurrences identified from more than 13,000 soil samples.
Drilling efforts have been carried out using both diamond and rotary air blast methods.
Eureka Dome, situated around 62km north-north-west of Mariposa and 55km north-east of the White Gold Project, can be reached by road from Dawson City.
Limited soil sampling has identified two main targets.
One is a potential epithermal system marked by irregular gold values and arsenic-antimony-mercury anomalies over a 2.5km × 1km area, and the other is a porphyry-like system with strong copper-molybdenum-gold-zinc signatures and possible lead zonation.
Labrador Gold president and CEO Roger Moss said: “The acquisition of the Mariposa and Eureka Dome properties gives LabGold an entry into the prolific White Gold District with two projects that have been idle for some time, despite increased exploration activity in the Yukon.
“Mariposa is well mineralised with several geological characteristics similar to other gold deposits in the district yet remains comparatively under-explored.
“These are exactly the kind of projects where LabGold’s systematic exploration can lead to discoveries, as previously demonstrated at our Hopedale and Kingsway projects.”
Labrador Gold has outlined a summer exploration programme, which includes airborne magnetic and light detection and ranging surveying, along with comprehensive soil sampling in areas like Alberta Creek.
In February this year, the company and Nemo Resources signed an agreement to form a joint venture to explore the Watson Project in north-western Ontario, Canada.
