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Pacton Gold continues to position itself for success at famous Red Lake gold district

Snapshot

Pacton's ground is neatly situated between Pure Gold Mining's Madsen project, poised for production this year, and Great Bear's Dixie property

Pacton Gold Inc. -

Quick facts: Pacton Gold Inc.

Price: 0.085 CAD

TSX-V:PAC
Market: TSX-V
Market Cap: $19.42 m
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  • Working in top-rated, prolific mining regions
  • Fully funded, 10,000 metre drill program underway
  • Experienced management

What Pacton Gold does:

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

Its Ontario claims - and its flagship project - lie in the famous Red Lake Camp, which made mining titan Goldcorp, prior to its recent acquisition by Newmont - now Newmont Goldcorp Corp (TSE:NGT) - the firm it is today. More than 29 million ounces of gold have been churned out in the last 90 years from the area.

Pacton's ground is neatly situated between Pure Gold Mining's Madsen project, set for production this year (2020), and Great Bear Mining's Dixie property (and the Hinge discovery) where results have included 759.4 grammes per tonne (g/t) of gold over 0.5 metres (m).

The firm also has the Tully West property in Timmins, Ontario, which lies immediately west of the Tully/Timmins North Gold deposit, where drilling in 2013 by SGX Resources Inc hit high-grade gold in one hole of 36.7 g/t over 6.3m, just 200m below surface. The firm also has the Carpenter Lake uranium project.

Meanwhile, in Australia, Pacton has ground in the Pilbara - famous for natural resources, especially iron ore, but now where gold is gaining momentum.

The company is the third-largest landholder in the Pilbara craton with 20 exploration licenses and five mining leases. Its Egina project is contiguous with Novo Resources Corp’s extensive Egina tenements which contain gold-bearing gravels.

At Boodalyerrie, Pacton’s most easterly Pilbara tenement, there is a prominent swarm of up to 10m thick gold-bearing veins and stockworks. At the Yandicoogina project, there are historical workings with over 4.7 kilometres (km) of prospective strike with chip samples up to 199.7 g/t of gold.

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.

How is it doing:

At the end of January, 2020, Pacton Gold revealed it was set to expand its ground at the famous Red Lake area, with a deal to become a joint venture partner in the Sidace Lake advanced gold property, contiguous to its current claims.

Pacton is set to acquire all of TomaGold's 39.5% interest in the venture, which it holds with Evolution Mining Ltd (ASX:EVN) and Newmont Corporation.  Sidace already boasts of over 81,600 meters of historic drilling and Pacton described it as an "exciting" gold project with a clear path for potential growth.

"It is directly adjacent to our existing Red Lake land package and we look forward to entering the JV, as operator, and working with Evolution Mining to advance the project," said the firm, which has said it expects to be drilling there within months.

Pacton already increased its footprint to over 23,000 hectares in Red Lake when it struck a deal last October to acquire 150 mineral claims known as the Gullrock Lake property in Ontario. The new claims adjoin its existing northern block and are an eastern extension of the producing Red Lake Mine trend.

In the same month last year, the group reported new high-grade surface sample results from the Boyden prospect at the Red Lake project, which helped to further refine drill target.

This was quickly followed by news of a planned 10,000m drill program, which then kicked off, to focus on high-priority targets at the Boyden and Carricona prospects and look for potential mineral extensions from nearby properties in the Madsen-Dixie fault corridor.

A new target was added later, such that the Boyden, Carricona, LP Fault Extension and Shim targets - all at the Madsen-Dixie fault corridor - then became the focus.

In February, Paton closed a near C$6 million financing to fund further exploration at its Red Lake, Ontario gold properties. The firm said C$1.6 million in proceeds would be used for general working capital.

Currently at Red Lake, Pacton is drilling just south of Pure Gold's Madsen mine project and the drill will probably move next to the north-west fault line that extends from the LP fault, which is where Great Bear's discoveries are.   

Inflection points:

  • Drilling and exploration results
  • Acquisition news

What the boss says:

Pacton Gold's executive chairman Dale Ginn recently explained to Proactive's Steve Darling what excited the company about the Sidace Lake deal.

"I like the fact that it's partnered with the major producer in the region so it's a great partner, it's a high grade zone, there's some really high grade intersections at depth and a lot of work done on it to date and it fits with our strategy of drilling off high grade in well-known jurisdictions," he said.

Ginn also noted the renewed excitement surrounding the Red Lake area, although it already has a rich production history.

"The area's always been prolific and now with Evolution Mining buying out Newmont, we've got another injection of life if you will, plus the Great Bear discoveries, plus Pure Gold's new mine so there's a lot of activity."

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Watch

Pacton Gold acquires new property in the red hot mining district of Red lake

Pacton Gold (CVE:PAC-OTC: PACXF) Executive Chairman Dale Ginn joined Steve Darling from Proactive Vancouver to discuss the company acquiring just under 40 per cent of the Sidace Lake property from TomaGold Corp.    Ginn talks about why they decided to take this over and what kind of...

on 3/2/20

5 min read