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Pacton Gold searching for gold at two famous addresses in Ontario and Western Australia

Published: 13:30 21 Apr 2021 EDT

Snapshot

The company is in a joint venture partner in the Sidace Lake advanced gold property, which is contiguous to its Red Lake, Ontario claims

Pacton Gold Inc. -
  • Working in two top-rated, prolific mining regions
  • Claims lie in Ontario's Red Lake Camp and span over 23,000 hectares
  • Also has ground in the Pilbara region of Western Australia
  • Experienced management

What Pacton Gold does:

Pacton Gold Inc (CVE:PAC) (OTCMKTS:PACXF) is on the hunt for high-grade gold in two prolific regions in Ontario and in Western Australia.

The company's main Ontario claims lie in the famous Red Lake Camp and span over 23,000 hectares. Red Lake made mining titan Goldcorp, prior to its recent acquisition by Newmont - now Newmont Goldcorp Corp - the firm it is today.  More than 29 million ounces of gold have been churned out from the area over the last 90 years.

Also in Ontario, Pacton Gold is in a joint venture partner in the Sidace Lake advanced gold property, which is contiguous to the company's Red Lake claims. Pacton acquired TomaGold's 39.5% interest in the joint venture with Evolution Mining Ltd (ASX:EVN) and major Newmont Corporation in 2019. Pacton became the operator and said it planned to expand the mineralized zones with exploration drilling

And also in Canada, the firm has the Carpenter Lake uranium project which is located in the southern margin of the Athabasca Basin in north-central Saskatchewan. The uranium exploration potential of the Carpenter Lake property is underscored by the numerous uranium anomalies in historical lake sediment samples, reinforced further by airborne radiometric anomalies both along and west of the Cable Bay Shear Zone (CBSZ).

Meanwhile, in Australia, Pacton has ground in the Pilbara - famous for natural resources, especially iron ore, but now where gold is gaining momentum. Its focus is on the Egina project, which is contiguous with Novo Resources Corp’s extensive Egina tenements which contain gold-bearing gravels.

The firm says its multiple mining leases across a number of projects means it enjoys a fast-track route to trial mining of surface material.

The company’s experienced team is headed up by award-winning gold explorer, Dale Ginn, as executive chairman. He has led and participated in numerous gold and base metal discoveries, many of which are in production today, including Gladiator, Hinge, 007, 777, Trout Lake, and Tartan Lake.

How is it doing:

In a statement on April 14, 2021, Pacton Gold said it had finished its winter drill program at the Sidace and Red Lake gold projects in Ontario. The company said it was now planning a “comprehensive” follow up exploration program to take place during 2Q and 3Q of this year once results from all programs have been received and analyzed.

At Sidace, a joint venture with Evolution Mining, Pacton drilled a total of 11,575 metres over 18 holes. The company said it saw “strong” results from the Phase 1 program, released in January, including high-grade and widespread mineralization. Drilling in Phase 2 and 3 encountered geology indicative of known mineralization at the Upper Duck and Anderson zones, it added.

The firm also drilled 8,919 metres over 24 holes at its Red Lake gold project and will start a surface exploration campaign in the summer to generate new targets for a fall drilling campaign.

Pacton had set out its plans for 2021 on January 6 when it told investors that it would accelerate the ongoing drill program at its two Ontario gold properties.

At Red Lake, the Vancouver-based company said it would complete the 10,000m program before analyzing geophysics and sampling data in preparation for a property-wide surface exploration program that will develop new targets before Phase II drilling begins. Last year, Pacton intersected near-surface gold mineralization at the Carricona and Madsen-Dixie Corridor targets that revealed grades of up to 17.2 g/t gold over 0.5m.

In a later statement, on January 26, Pacton said it had identified new priority targets for drill program at its Red Lake project after a seismic survey was carried out by its neighbour PureGold Mining Inc. The 2D seismic survey included 13 km of line data over Pacton's claims, and has enhanced targets at the historic Carricona trenches on Pacton's project, the firm said. Pure Gold is now preparing for a 3D seismic survey to follow up, which is expected to include 94 km line over Pacton's property.

And in February, the company said it had acquired one additional mineral claim to be added to the Red Lake West Option Agreement it signed in April 2020. The claim is approximately 200 hectares and contiguous with Pacton’s existing Red Lake properties. As consideration for the additional claim, the company said it will pay $500 and issue 30,000 common shares to the optionor.

Over at Sidace, Pacton said it would start drill testing the western extension of the Upper Duck and Main Discovery zones and commence a Phase III program consisting of drilling the northeast plunging mineralization at the Anderson zone.

Then on January 19, Pacton hailed the first phase drill results from Sidace which it said showed high-grades and widespread gold mineralization.  The company said ten holes were completed, with results received from nine, showing all hit gold mineralization. Highlight assays included a high grade of 9 g/t of gold over 2.3m. The widespread nature of the mineralization was demonstrated with results of 1.3 g/t of gold over 75.2m.

With the first phase complete, the second phase of work will target the extension of the Upper Duck Zone along strike and at depth, Pacton said, with the 11,500m programme expected to be completed in the spring this year.

Outside of Red Lake, in February, Pacton completed on its plans to sell majority stakes in three of its projects in Australia's Pilbara region, announced in October last year, while retaining the key Egina asset. The company has sold 75% of the Arrow, Yandicoogina and Boodalyerrie gold properties to Aussie-listed Raiden Resources Limited.

Under the deal terms, C$500,000 will be paid to Pacton along with the issue of over 129.7 million shares in Raiden (value at around C$2.6 million). A further C$500,000 will be paid to Pacton on the first anniversary after completion. Pacton will retain a 25% carried interest in the assets until there is the delineation of a JORC mineral resource (or another globally recognized code) of at least 250,000 ounces of gold at a minimum grade of 1 g/t across any of the properties.

In the boardroom, at the end of last year, Pacton named experienced mining industry executive Nav Dhaliwal as its interim chief executive and president, which is said reflected the company’s greater focus on its two Red Lake, Ontario projects.  It noted that outgoing interim CEO and president Alec Pismiris would remain as a director of the firm. 

Dhaliwal is a high-profile mining executive, financier, and capital markets expert, with a record of value creation. He was the founding chief executive of Bonterra Resources Inc, which made the award-winning Gladiator discovery in Quebec, and has also founded several other successful companies, including Kanadario Gold Inc and Gatling Exploration Inc.

And in December, following the firm's annual general meeting, it said Karly Oliver, a professional geologist with more than a decade of experience in the exploration and mining industry had joined its board. She has previously worked with New Gold Inc.’s corporate exploration group where she coordinated exploration programs and mineral resource delineation projects across North America. 

On the financing front, on December 17, 2020, Pacton Gold closed an oversubscribed financing, bringing in more than C$3.6 million. The explorer said that 2.01 million flow-through (FT) shares were issued at $1 per FT Share for total gross proceeds of C$2.01 million, while its private placement of around 1.8 million shares at C$0.90 each raised C$1.627 million gross.

The company said the gross proceeds from the FT shares will be used for Canadian exploration expenses and will qualify as "flow-through mining expenditures", while the proceeds from the units will be used for general working capital.

Inflection points:

  • Further results from Red Lake gold project drilling
  • Completion of Sidace drilling in the spring
  • News from Egina asset in Australia

What the boss says:

"This continues to be a very active period for Pacton,” the company's interim CEO Nav Dhaliwal told shareholders in April's statement

“We have just completed drilling and are awaiting assays from multiple holes in two programs at our projects in the Red Lake gold rush. We are also in the final stages of planning a robust surface exploration campaign to develop additional targets, and anticipate crews mobilizing next month,” he added.

Contact the author at jon.hopkins@proactiveinvestors.com

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