Noveder grabs Micmac gold property

A letter-of-intent agreement paves the way for Noveder (NED-M) to earn a full interest in the Micmac gold property in northern Newfoundland.

The Quebec-based junior will pay private vendors $25,000 in cash and issue shares totalling $50,000 over the next three years. The vendors retain a 1% net smelter return royalty.

The deal is subject to regulatory approval and a formal agreement.

Micmac was initially explored in the 1980s by Noranda (NOR-T), which identified a gold showing containing up to 17.5 grams per tonne in quartz veins. More recent work to the east led to the discovery of a soil anomaly measuring 700 metres long by 200 metres wide. The anomaly contains up to 1.6 grams in sediment and up to 71.6 grams in float.

Soil and induced-polarization surveys will begin shortly, with drilling to follow in the new year.

Noveder holds several other mineral exploration properties in the province, as well as in neighboring Quebec.