Newfoundland’s junior Gold Hunter Resources Inc. (CSE: HUNT) is enhancing its provincial roster by gradually taking a 100 per cent stake in two new precious metal assets.
Gold Hunter will be required to pay Magna Terra Minerals Inc. (TSX-V: MTT) C$9.5 million by 2026 for full ownership of the Great Northern and Viking projects. The Atlantic Canada prospectors signed a binding option agreement on Wednesday.
“Great Northern is certainly an enticing project with significant gold endowment, 30+ kilometres of strike potential and numerous first-priority targets for additional discovery within its expansive 16,650-hectare land package,” Magna Terra President Lew Lawrick said.
Combined with Viking, the sites collectively hold an estimated 51,000 ounces of indicated gold.
“The additional mineral claims further solidify our position in this key area and commitment to Newfoundland and Labrador,” Gold Hunter chief executive Sean Kingsley said in a press release.
The Great Northern property, Newfoundland. Photo credit: Magna Terra Minerals
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Similar geological features to Valentine mine
Great Northern and Viking are situated right between the province’s Baie Verte Peninsula and Northern Peninsula.
Magna Terra says the two sites have similar qualities to the neighbouring Valentine gold mine run by Calibre Mining Corp (TSX: CXB) (OTCQX: CXBMF) and the Clarence Stream project being developed by Galway Metals Inc. (TSX-V: GVM).
Magna Terra recently collected grab samples at Great Northern with grades as high as 6.5 grams per tonne gold. Historical intercepts at the project have yielded mediocre grades over significant lengths, including 1.8 g/t Au over 74 metres.
Map: Magna Terra Minerals
Gold Hunter purchases additional claims
Gold Hunter just agreed to purchase 143 neighbouring and adjacent mineral claims from Sorrento Resources (CSE: SRS) for C$60,000 and 1 million shares (valued at C$150,000) as well. The gold explorer is buying up a series of other less expensive assets from private vendors too.
The company recently sold its subsidiary, known as 1451366 B.C. Ltd., to the Australian company Firefly Metals Ltd (ASX: FFM) for 30 million shares, valued at about C$15 million.
Mining currently provides over 7,500 Newfoundland residents with employment. It is one of the province’s oldest and most significant industries.
In addition to gold, Newfoundland produces significant quantities of copper, cobalt, nickel, iron ore and zinc. Furthermore, some believe there is immense potential for uranium and rare earth elements production.
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