Transition Metals Corp. has announced that it has entered into an option agreement to acquire a 100 per cent interest in the more than 45 square kilometre Highland Gold property located in the Cape Breton Highlands, N.S.
“We think the potential for the area to host large deposits of gold is strongly supported by the historical, highly anomalous results coming from stream sediments, tills, soil and bedrock samples,” says CEO Scott McLean. “Rocks of similar age and formation are known to host significant gold deposits in the Carolinas, Newfoundland,Ireland and Scotland. Cape Breton has an overlooked district scale gold potential that should be of interest to major gold producers looking for new opportunities. We plan to initiate exploration work this fall.”
The property covers an extensive cluster of high grade gold occurrences that have seen very limited exploration.
Transition retains the right and option to earn a 100 per cent interest in the property by completing $1.5 million of expenditures and issuing $170,000 in cash and $175,000 in shares to the Vendor over a five-year period. If the company vests its interest, the vendor would retain a two per cent Net Smelter Return royalty (NSR) with Transition retaining the right to buy back one per cent NSR for $1.25 million.
Work planned by the company this fall includes till and soil sampling, a high resolution airborne magnetic/conductivity survey, and reverse circulation drilling. Additionally, the Nova Scotia Mineral Resources Development Fund will provide up to $95,000 in exploration funding assistance which will help the company offset some of its costs.
(Transition Metals Corp.)
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