||Motherlode, mineral claims covering 12,350 hectares, south coast Newfoundland
||The Motherlode Project is located in southeastern region of Newfoundland’s Burin Peninsula approximately 3.5 hours by road from Gander and/or St. John’s. Excellent access and logistical infrastructure, with year-round road access, high-power electrical lines running through the project, nearby Atlantic Ocean ports, and an active nearby industrial fluorite mine.
||Highly prospective exploration project within an estimated 16.5-kilometre-long exploration trend hosted in late Proterozoic-age Burin Group volcanic and ultramafic rocks. 11 historical mineral occurrences, including 8 gold showings. Major northeast trending, sub-vertical dipping shear-fault zones up to 30 metres wide
||A combination of staking and property option agreements giving exclusive rights to acquire a 100% interest in mineral exploration licenses, subject to a 2.5% and a 1.5% NSR. The Company has the right to purchase portions of the NSRs and a Right of First Refusal on the balance.
Latest News from Motherlode
In August 2021, the Company announced it has secured, by a combination of staking and property option agreements, exclusive rights to acquire a 100% interest in mineral exploration licenses totalling 12,350 hectares making up the Motherlode Gold Project (the “Motherlode Project” or the “Project”) located within the Burin Peninsula of southern Newfoundland, Canada.
Motherlode Select Historical Sampling Results:
- High grade gold rock grab samples: 25.0 g/t Au, 15.7 g/t Au, 11.6 g/t Au, 6.3 g/t Au & 4.5 g/t Au
- Trench/Channel Results: 0.5m of 4.5 g/t Au, 1.5m of 10.1 g/t Au, 6.2m of 3.6 g/t Au (incl. 0.9m of 7.7 g/t Au)
- 2007 Diamond Drill Results (8 holes, 902m): 0.7m of 3.2 g/t Au, 10.4m of 0.82 g/t Au, 1.5m of 2.8 g/t Au
Motherlode Location and Geology
The Motherlode Project is located approximately 3.5 hours by road from Gander and/or St. John’s within the southeastern region of Newfoundland’s Burin Peninsula, which is part of an active gold exploration region that includes other high profile gold exploration projects such as Root & Cellar (Northern Shield Resources), Heritage (Golden Ridge Resources) and Hickey’s Pond (Bonavista Resources).
Project Gold Mineralization and Geology
- 11 historical mineral occurrences, including 8 gold showings;
- District-scale potential within an estimated 16.5-kilometre-long exploration trend hosted in late Proterozoic-age Burin Group volcanic and ultramafic rocks;
- Major northeast trending, sub-vertical dipping shear-fault zones up to 30 metres wide;
- Gold enriched quartz veins and quartz-silica stockworks are strongly associated with ‘high strain’ rocks (i.e. shears, schists, folds) with a generally low pyrite content;
- Project regional government till, lake & stream sample geochemistry anomalies include gold, arsenic, antimony, copper, nickel and zinc.
Project lithologies are part of the major Avalon Tectonostratigraphic Zone, where claims are dominantly underlain by late Proterozoic aged Burin Group submarine oceanic volcanics and associated ultramafics, with interbedded clastic sediments and carbonate rocks. The Burin Group lithologies have a NE-SW trend and sub vertical dip, with a pervasive greenschist facies deformation, ranging from moderate fracture cleavage to a strong and discrete shear fabric (quartz-chlorite-sericite-calcite schists; typically, coplanar to local lithological bedding trends). Historical reports indicate that gold enriched quartz veins and quartz-silica stockworks are strongly associated with ‘high strain’ rocks (i.e. shears, schists, folds) containing a generally low pyrite concentration.
Motherlode Acquisition Terms
The Company entered into two underlying property option agreements granting Precipitate the exclusive right to earn a 100% interest in a combined 6,100 hectares of mineral exploration licences (the “Properties”) by fulfilling certain elective annual cash and share payments over a 4-year option term, as follows:
Precipitate Common Shares
|12 month Anniversary
|24 month Anniversary
|36 month Anniversary
| 48 month Anniversary
Upon completion of the cash and share payments as set out above, Precipitate will have a 100% interest in the Properties, subject to certain net smelter returns (“NSR”) of 1.5% (Vendor Group 1) and 2.5% (Vendor Group 2) granted to the two vendor groups by Precipitate. Portions of each NSR are purchasable by Precipitate at any time for $500,000 per 0.5% (Vendor Group 1) and $750,000 per 0.5% (Vendor Group 2). In addition, Precipitate retains a right of first refusal to purchase the balance of all NSRs at any time.
Additionally, the Company acquired a 100% interest in an adjoining 6,250 hectares by direct staking and execution of a purchase agreement to acquire a small inlier parcel in exchange for $1,000 and 25,000 common shares of the Company. No NSR is applicable on the staked or purchase agreement claims.
The property option agreements and purchase agreement are subject to TSX Venture Exchange approval.