Fort Knox adds to holdings

In another Newfoundland cash-and-shares deal, junior explorer Fort Knox Gold Resources (FNX-T) has taken an option on a gold exploration property 60 km north of Gander.

The agreement gives Fort Knox the right to acquire the Wings Point property over a 3-year period, in return for 150,000 shares and $150,000 cash. The vendors, a local prospecting syndicate, retain a 3% net smelter return, which Fort Knox can buy down to 1% by paying an additional $1 million.

Initial prospecting on the property, near Gander Bay on the northern coast, has revealed gold mineralization in quartz veins that have developed in shear zones. The host rocks are chloritized sediments, with disseminated pyrite, arsenopyrite and stibnite.

Grab samples from outcrops scattered over a 165-by-75-metre area yielded gold assays between 6.3 and 43.4 grams gold per tonne. The showings appear to lie on a south-striking structure.

Another 1 km to the south, at Bussey’s Point, grab samples that graded 1-4 grams per tonne were taken from quartz veins in silicified sandstones, which are intruded by felsic dykes.

Fort Knox, which has staked claims around the property to bring the size of the land package to 63 sq. km, plans sampling, mapping, geophysics and geochemistry in the upcoming field season. Diamond drilling will follow.