Celtic expands portfolio in Newfoundland

Alberta-based Celtic Minerals (CME-V) is acquiring the Great Burnt Lake and Victoria Mine base metal properties in central Newfoundland.

Great Burnt Lake is contiguous with the junior’s South Pond property and contains a resource of 907,180 tonnes grading 2.92% copper. The deposit after which the property is named strikes northeast, dips steeply to the southeast and plunges gently to the southwest. Mineralization, in the form of pyrrhotite, chalcopyrite and pyrite, extends 600 metres down-plunge, where it remains open.

Contiguous with the Hungry Hill and Victoria River properties, the Victoria Mine property covers 9,103 ha and is characterized by prospects of copper, lead and zinc. One historic hole averaged 2.02% copper, 9.7% lead and 19.5% zinc over 0.3 metre, whereas another graded 1.28% copper and 13.22% zinc over 5.8 metres.

To acquire the properties, Celtic must issue 500,000 shares to Noranda (NOR-T) and agree to sell the major any ore or concentrate produced on either property. The major retains a 2% net smelter return and a right of first refusal on any property within 10 km of the Great Burnt Lake deposit; it will also be paid $1 million in cash, or the equivalent in shares, if that deposit is mined.