- Portofino Resources (TSXV:POR) has signed an option agreement with Falcon Gold to acquire a 100 per cent interest in the Bruce Lake property in Ontario
- Under the terms of the agreement, Portofino will issue 650,000 shares to Falcon Gold in exchange for the ownership and assume C$52,000 in underlying claim holder payments
- The underlying claim holder agreement includes a 1.5 per cent net smelter return royalty, and a further 0.5 per cent will be granted to Falcon Gold
- The company is now working to compile historic data to define exploration targets for a future field program
- Portofino Resources (POR) is up 52.94 per cent to 13 cents per share
Portofino Resources (TSXV:POR) has signed an option agreement with Falcon Gold to acquire the Bruce Lake property in Ontario.
Covering a total of 1,428 hectares, the Bruce lake property sits in the prolific Red Lake gold district of Ontario.
The site is roughly 1.5 kilometres northeast of Great Bear Resources' Pakwash property and 11 kilometres southeast of Great Bear's well-known Dixie project.
Under the terms of the four-year option agreement, Portofino will issue a total of 650,000 common shares to Falcon Gold for the acquisition and assume C$52,000 in underlying claim holder payments.
The claims at the Bruce Lake property are also subject to a 1.5 per cent net smelter return royalty, which has been granted as part of the underlying agreement, as well as a 0.5 per cent net smelter royalty granted to Falcon Gold.
David Tafel, CEO of Portofino Resources, commented on the option agreement.
"The success of Great Bear and BTU Metals drilling northwest of Bruce lake, combined with our current South of Otter property to the northeast, gives Portofino a well placed land package in a very active and expanding exploration area of Red Lake.
"Additionally, we believe the Bruce Lake property compliments our regionally focused gold strategy and largely completes our property portfolio," he said.
Like Great Bear's Dixie project, the Bruce Lake property is underlain by the Archean-age metamorphosed sedimentary and volcanic rocks of the Uchi-Confederation Lake greenstone belt.
Gold-in-soil anomalies were previously discovered at the Bruce Lake property during a reconnaissance soil sampling program undertaken by Laurentian Goldfields in 2010.
The anomalies are thought to be associated with the existence of regional magnetic high anomalies, which Portofino believes are significant.
The company is now working to compile and reinterpret available historic data related to the Bruce Lake property in order to define exploration targets ahead of a maiden field work program.
Portofino Resources (POR) is up 52.94 per cent and is trading at 13 cents per share at 1:21pm EDT.