Announced in May as an LOI but now ratified, Kapuskasing Gold’s (TSXV:KAP) 100% option adds the Sterling property and its former mines to the company’s Lady Pond project near the north coast of Newfoundland. The 700-hectare addition brings Lady Pond to 2,450 hectares with exploration and mining dating to the late 19th century. The standouts include the former Sterling mine, the Twin Pond prospect about 1.5 kilometres northeast and, three more kilometres northeast, the Lady Pond past-producer.
Sterling comes with an historic, non-43-101 1960s estimate of a million tonnes averaging 1% copper that’s open in all directions. Some historic, non-43-101 intercepts showed:
-- 5.5% copper over 4.42 metres, starting at 38.1 metres in downhole depth
-- 2.32% over 6.1 metres, starting at 106.68 metres
-- 1.45% over 4.57 metres, starting at 50.29 metres
Of 32 holes sunk on Twin Pond, some historic, non-43-101 highlights showed:
-- 4.2% copper over 3.35 metres, starting at 82.3 metres
-- 2.16% over 3.05 metres, starting at 33.53 metres
-- 3.2% over 3.05 metres, starting at 70.14 metres
Again with the historic, non-43-101 caveat, a Lady Pond intercept assayed 2.61% copper over 8.1 metres, with no downhole depth provided.
Having finished a preliminary 3D model for Sterling and Twin Pond, Kapuskasing stated it found significant gaps in drilling between high-grade intersections. Further review of historic data will precede drilling planned to begin next month. The company also plans an induced polarization survey between Sterling and Twin Pond.
With logging road and ATV access, the Lady Pond project borders the town of Springdale. Rambler Mining and Metals TSXV:RAB operates a base metals mill at Baie Verte, 94 kilometres by road from Springdale. Rambler also holds the historic Little Deer and Whalesback copper deposits contiguously west of Lady Pond.
Subject to TSXV approval, Kapuskasing gets a 100% interest in Sterling for $25,000, 1.8 million shares and $250,000 in spending over four years. A 3% NSR applies, of which Kapuskasing may buy two-thirds for $2 million.
The property expansion reflects an acquisitive phase as Kapuskasing expands its Newfoundland and Labrador portfolio. In May the company signed an LOI on the former Daniel’s Harbour zinc mine on the island’s north. Lady Pond was one of eight April acquisitions, with other properties showing potential for copper, cobalt and vanadium. Daniel’s Harbour and Lady Pond comprise the portfolio’s dual flagships.