Victory Resources Corporation (CSE:VR) (OTCMKTS:VRCFF) said on Tuesday that it has acquired the Lac Simard Property in Quebec from Archie Capital Inc in a cash and stock deal.
The Vancouver-headquartered mining firm said the deal included five million shares at a deemed price of $0.115 and $25,000 cash. The shares will be subject to a four-month hold, noted the company.
Significantly, there are three important operating gold mines within 20 kilometers of the purchased property. Lac Simard is five kilometers south of Quebec’s Val-d'Or region and abuts the southern edge of Agnico Eagle Mines Limited's (TSE:AEM) (NYSE:AEM) Goldex claim block. The Goldex deposit had proven and probable mineral reserves of 1.1 million ounces of gold (21 million tonnes grading 1.6 grams per tonne gold) as of December 31, 2019.
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Similarly, the Simard Property lies 20 kilometers to the northwest of the Canadian Malartic mine, owned by Agnico Eagle and Yamana Gold Inc (TSE:YRI) (NYSE:AUY), which is Canada's largest operating open pit gold mine. In 2019, the 55,000-tonnes per day open-pit mine and plant produced 662,918 ounces of gold.
The new buyer’s third neighbor is the Lamaque underground gold mine owned by Eldorado Gold Corp (TSE:ELD) (NYSE:EGO), which kicked off commercial production a year ago. Lamaque is expected to mine and process over 615,000 tonnes of ore at an average grade of 7 g/t gold.
All three mines are considered to be orogenic gold deposits and occur along the Larder Lake-Cadillac fault system.
Victory Resources said its new property consists of 46 contiguous mining titles with a total area of 2,560 hectares. The property has underlying metasedimentary provenance from the Neoarchean Pontiac Group.
Narrow ultramafic intrusives and volcanics occur at the west end of the property, said the company. A regional fault which parallels the Larder Lake-Cadillac Fault system runs across the west half of the property.
The Lac Simard Property property is road accessible and has a sturdy all-weather road.
Contact the author Uttara Choudhury at firstname.lastname@example.org
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