- Puma Gold (TSXV:PUMA) has acquired a New Brunswick gold property
- News of the acquisition has bumped Puma shares up by 20 per cent
- The company purchased the site for C$100,000, plus 500,000 Puma Gold shares, and add-ons
- The site has returned assay results of 50 g/t gold
- Puma Gold (TSXV:PUMA) is trading up 20 per cent at $0.06 per share with a market cap of $1.8 million
Puma Gold (TSXV:PUMA) has announced the purchase of a second gold property in New Brunswick, the Williams Brook gold property.
The 5000 hectare property is just 25 kilometres from Puma Gold’s 100 per cent-owned Jonpol Gold property.
Previous bedrock drilling taken from the site has returned results of 50 g/t gold.
The company has contained the drilling program to a small 1.4 km by 0.8 km section, where results have been promising.
Intersections of 28 metres at 0.91 g/t gold were made within that area. Intersections of 5.4 g/t over 1 metre and 11.2 g/t over 11.8 metres were also made.
The initial agreement cost the company 500,000 shares and C$100,000, but there are additional caveats.
Firstly, the initial payment will come in tranches over the course of 4 years. An initial 200,000 shares will make up the first part of the payment.
There are also substantial additional performance-based rewards in the agreement. This includes paying $25,000 to the seller upon the completion of a positive preliminary economic assessment.
The second performance bonus is $50,000 to the owner upon completion of a pre-feasibility study. The final payment is $100,000 to the owner upon successful production on site.
This totals some $175,000 in additional bonuses, should the site ever make it to production.
There are two mineralization types within in the Williams Brook property. The company is most excited by the rhyolite breccias present on the site.
Quartz breccias are some of the most sought after gold mineralisation types in the world. This is because they have the ability to contain intense mineralisation at relatively shallow depths.
The company believes that it has two such veins on the property, extending a combined length of over 2 km.
Puma Gold (PUMA) is trading up 20 per cent at $0.06 per share at 2:30 pm EST.