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Prosper Gold (TSXV:PGX) has entered an option agreement to acquire the historic Ashley Mine and surrounding claims in Ontario.
Prosper Gold (TSXV:PGX) has entered an option agreement to acquire the historic Ashley Mine and surrounding claims in Ontario.
As quoted in the press release:
The Property is at the southwestern part of the Abitibi Greenstone Belt and on the west part of the Cadillac Larder Lake fault system. Historically the Abitibi belt produced 160 million ounces of gold with about one third from the Cadillac Larder Lake system. The Ashley Gold Mine is 17 km west of Alamos’ Young-Davidson Mine and 17 km east of Teck’s Stairs Mine.
The Ashley Mine is a narrow high-grade quartz vein similar to the lodes of the Porcupine and Kirkland Lake gold camps. It produced 50,099 ounces of gold from 157,636 tons of ore (0.32 oz. Au/ton) from the main Ashley vein between 1932 and 1937. The vein strikes north, dips west at 30 to 50 degrees and has been followed underground for 600 metres. (Petromet Resources Ltd. (1982))
In terms of details of the option agreement, the company stated:
The Option Agreement calls for the Company to make cash payments totaling $700,000, the issuance of 1,700,000 Prosper Gold shares and work expenditures totaling $250,000 over 3 years in order for the Company to earn a 100% interest in the Property, subject to a 3% Net Smelter Royalty, 2% of which can be repurchased by the Company upon payment of $2,500,000 to the Optionors.
Prosper Gold CEO, Pete Bernier, said:
Focus will be on high grade gold vein systems as well as bulk tonnage syenite hosted gold targets. This is an exciting direction change for the Company, modelled after our previous Company, Richfield Ventures, finding the right type of project at the right time in an improving gold market.