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Junior Mineral Explorer Acquires New Gold Discovery In New Brunswick, Shares Spike On News
By: AllPennyStocks.com News
November 30, 2011
As we detailed in our profile of GreenLight Resources Inc. (TSX-Venture:GR), the Atlantic Canada region has no shortage of gold, silver and other valuable metals. Moreover, it is one of the most politically-friendly regions in the world, according to the Frasier Institute’s Policy Potential Index. As such, more and more miners including GreenLight Resources Inc. (TSX-Venture:GR) are making their way to the eastern side of the country looking to claim some of the riches that lay beneath the surface.
Two weeks ago, SLAM Exploration Ltd. (TSX-Venture:SXL), which is a mineral resource company based in Miramichi, New Brunswick, focused on mineral properties with demonstrated ore grades in mineral belts that have proven potential for mining. The company has built a large portfolio of projects in New Brunswick and Ontario, Canada. Five of the company’s projects are located in New Brunswick and three are in Ontario.
Reports have been steadily flowing for SLAM with work ongoing on multiple projects at once. Just two weeks ago, the company announced a new gold discovery 12 kilometers west of Xstrata's (Pink Sheets:XSRAY) BMS No. 12 Mine and 10 kilometers north of SLAM's wholly owned Nepisiguit deposit where the Company has 2 diamond drill rigs turning in northern New Brunswick . The gold discovery, which is open in all directions, was uncovered by a recent trenching program on SLAM's wholly-owned California property. A grab sample returned 15.3 g/t gold from a carbonate zone with quartz veining.
Today, SLAM provided investors with more news showcasing its aggressive growth strategy with the announcement of an acquisition of new gold discovery in northwestern New Brunswick. Prospector Tim Lavoie recently made the discovery and subsequently staked a number of claims referred to as the NW Gold Property. CEO Mike Taylor said that he has been to the site and examined large boulders with visible gold. The new property contains angular quartz boulders ranging from 5 kilograms to 100 kilograms in size beside a logging road. Assays are pending from samples.
Moving quickly after the find, SLAM made a down payment of $20,000 to secure an option agreement on the NW Gold Project. An additional $30,000 cash and 100,000 shares are payable after a 30 day period. Additional terms include SLAM making annual cash and share payments for a total of $550,000 cash and 400,000 shares over 4 years to earn 100% interest on or before November 18, 2015. The vendor retains 3% Net Smelter Return (NSR) subject to $1 million buyback on 1 percent NSR.
Shares of SXL have moved upward with today’s news and have been on a climb since the early days of October after a long downtrend. Investors appear to be grabbing shares as SLAM continues to add properties. Shares touched $0.045 on October 3rd, but have since rallied to primarily trade in a channel between 7 and 8 cents for more than the last six weeks. Proper due diligence is encouraged as always.
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