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Phoenix Global acquires majority stake option at Gordon Lake
North America-focussed base and precious metals exploration and development company Phoenix Global Mining has entered into an exclusive option to acquire 80% of the high-grade Gordon Lake gold property in the Northwest Territories, Canada, from ExGen Resources, it announced on Wednesday.
The AIM-traded firm said it was part of its strategic expansion of its North American mineralised footprint, which now included three high-value and high-demand commodities - copper, cobalt and gold.
It said the Gordon Lake gold property had a similar high-grade geological setting to previously producing mines in the area including the Con, Giant and Discovery mines, with grades up to 21 g/t Au over 7.2 metres.
Previous exploration was limited to four of 17 identified zones with gold mineralisation open at depth, making it a potential low-cost underground gold mine.
It said the option cost was $25,000, with Jason Riley - president of ExGen - to be appointed to the board of Phoenix as a non-executive director.
ExGen would also retain a 20% interest in the project, as well as 20% interest in Phoenix's flagship Empire copper project.
"I am pleased to report Phoenix's further collaboration with ExGen and we look forward to creating value at the Gordon Lake property in Canada, which we have considered to have significant exploration merit for some time," said CEO Dennis Thomas.
"We have a strong team of geologists and consultants in the company who can add value at Gordon Lake."
Thomas said the region had been a prolific gold producer in the past, and the Gordon Lake footprint was similar to other significant historic gold producing operations in the area.
"Exploration on the property to date has concentrated on only four of 17 identified zones with gold mineralisation open at depth, making it a potential low-cost underground gold mine.
"The acquisition of Gordon Lake reinforces our focus and investment into the safe jurisdictions of North America in a most cost-effective manner and also continues to consolidate the close relationship that we have with ExGen Resources."
Additionally, Thomas welcomed Riley to the board of the Phoenix.
"We have worked with him closely in the past, especially on the Empire Mine redevelopment in Idaho and we feel his joining us will enhance the company's presence further in North America.
"However, the company's clear focus remains on the early development of the Empire Mine, which is proceeding well."