- Metals of Interest: Gold, Silver
- Location: Abitibi Greenstone Belt, Quebec
- Surface Area: 7,600 hectares
The Southern Star Property is made up of 146 claims which covers approximately 8,100 hectares (81km2). It shares a 7km adjacent border with Midland Exploration’s recent claim acquisition announced April 2, 2020, expanding their Gaudet property.
Newfoundland Discovery has a LOI (Letter of Intent) to acquire an encouraging property with strong potential, the Southern Star Property, just 6.5km South of Wallbridge Mining’s Fenelon Deposit.
The Newfoundland Discovery Corp. Southern Star Property is a new property acquisition, with encouraging gold and base metal potential, protects more than 81 km2 of the Brouillan-Fenelon geological Group, which is made up of felsic to mafic volcano-sedimentary rocks. The Bapst Fault marks the contact between the Brouillan-Fenelon Group and the Brouillan intrusive in the SW portion of this property. The Grasset Fault also crosses in part to the NE of the property.
The Bapst Fault runs NW-SE through the SW part of the property. In the South-West section of the property there was a historic silver intercept (SG3-1) along the Bapst Fault. The intercept returned 5.6g/t Ag over 1.4m and 5g/t Ag over 1m within drill holes (Mercier et al., 1996). This silver intercept was targeted within an area of conductor anomalies and a VTEM target identified by Midland Exploration in 2017.
There are two additional distinct electro-magnetic (“EM”) targets located on this property and it covers 11km along the extension of the Lower Detour Fault. There has been little historical work to test these different targets on the property, yet.
Letter of Intent Terms
Pursuant to the LOI dated April 16th, 2020, Newfoundland Discovery can acquire a 100% interest, subject to a 3% net smelter returns royalty, in the Southern Star property from the vendors by paying a $12,500 non-refundable deposit and, subject to regulatory acceptance, issuing 450,100 common shares.
Newfoundland Discovery can purchase 2% (or 2/3) of the net smelter returns royalty at any time for $3,000,000.
Newfoundland Discovery’s strategic property package is along the detour belt that has hosted some world class mines and deposits:
- Fenelon (Wallbridge Mining Company Limited): 2018-2019 bulk sampling provided 33,233 tonnes at 18.49 g/t Au. 100-120,000 meters of expansion drilling planned for 2020. (Source: Wallbridge Website)
- Martiniere / Bug Lake Gold Zones (Balmoral Resources): “In March of 2018 Balmoral published an initial resource estimate for the Martiniere Gold System on the property which outlined 591,000 ounces in the Indicated resource category and an additional 54,000 ounces in the Inferred Category.” (Source: Balmoral Website)
- Detour Lake Mine (Kirkland Lake Gold.): The Detour Lake mine hosts gold reserves of 15.61 million ounces of gold.
- B-26 Property (SOQUEM Inc.): “A resource estimate was completed in March 2018. The indicated resources of the polymetallic deposit are estimated to be 6.97 Mt at 1.32% Cu, 1.80% Zn, 0.60 g/t Au and 43 g/t Ag, and the inferred resources stand at 4.41 Mt at 2.03% Cu, 0.22% Zn, 1.07 g/t Au and 9 g/t Ag. Favourable horizons elsewhere on the property remain untested.” (Source: SOQUEM’s web site).
Newfoundland Discovery’s Regional Map of the Detour Lake Trend
Cautionary Statements: Mineralization occurring at the mines and deposits listed above is not necessarily representative of mineralization that may be found on projects held by Newfoundland Discovery described within.
Donald Théberge, P.Eng., M.B.A, is the Qualified Person within the meaning of National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101”) and has reviewed and approved the technical content of this news release on behalf of the Company.