Probe Gold Expands Its Exploration Footprint with Stella Property Acquisition
Highlights:
- Strategic Acquisition: The Stella Property hosts the high-grade Lacoma gold zone, discovered in 1925, and is strategically located between the Croinor and Megiscane properties. This acquisition continues Probe's strategy of consolidating highly prospective exploration land in the underexplored gold belt.
- Prime Location: The Lacoma gold zone lies along the Manneville Fault, which is also home to the McKenzie Break gold resource, approximately 55 km northwest of the acquisition site.
- Exploration Upside: The property has seen limited exploration despite its potential for high-grade gold mineralization, promising significant opportunities for new discoveries.
- Low-cost Acquisition: The acquisition covers 30 square kilometres of underexplored land along a prolific gold structure.
TORONTO -- Probe Gold Inc. (TSX: PRB) (OTCQB: PROBF) announces it has entered a definitive purchase agreement with Leopard Lake Gold Corp. to acquire a 100% interest in the Stella Property. This property is strategically positioned to the east of Probe's Novador Development Project, nestled between the Croinor and Megiscane properties, approximately 9 km northeast of the former Croinor Mine. The property consists of 52 contiguous claims totaling 2,987 hectares, situated within a volcanic-sedimentary corridor that stretches from Timmins to the Grenville Front. This corridor includes the significant Manneville Fault and extends into the highly productive Destor-Porcupine Gold Break.
The President and CEO, David Palmer, highlighted the acquisition's strategic importance. He stated, 'This tuck-in acquisition aligns perfectly with our commitment to enhancing exploration potential in the Val-d'Or East region. It synergizes well with our existing properties, where recent geophysical and soil surveys have identified potential targets extending into the Stella Property. Our success in Val-d'Or East has seen our gold resources grow over 14-fold, now surpassing the 10Moz mark, and this acquisition posits us for further significant discoveries.'
This addition to Probe's land position will further solidify its presence in the Val-d’Or region. Following this acquisition and recent staking in Val-d’Or East, Probe's total land package will increase to 832 square kilometres, enhancing its role as a premier explorer in this productive area. The transaction is anticipated to finalize soon, pending necessary regulatory and Toronto Stock Exchange approvals, along with customary closing conditions.
Transaction Details
According to the agreement, Probe will acquire the Stella Property, subject to a 3% net smelter returns royalty, through consideration of 149,066 common shares, amounting to $250,000 based on a recent 15-day volume-weighted average share price on the TSX. The transaction closing hinges upon TSX approval and the satisfaction of established closing conditions. The issued shares will be subject to a four-month hold period as per Canadian securities regulations.
About the Stella Property
The origins of the Stella Property trace back to 1925, marked by a significant gold discovery. By 1931, Lacoma Gold Mines Ltd. was operational in the area, performing various exploratory activities including surface drilling and the sinking of a 79-meter shaft to probe mineralized veins. After initial promising results, exploration diminished and only resumed between 1983 and 1988 with focused studies. Notably, in 2011, post a period of inactivity, 23 drill holes were completed near the historical Lacoma shaft, revealing intersections of mineralization.
About Probe’s Novador Project
Since 2016, Probe Gold has been amplifying its foothold in Val-d’Or East, creating one of the gold sector's most expansive land parcels, totaling 832 square kilometres. The Novador Project, covering 202 square kilometres, comprises four past-producing mines and represents 80% of the company's gold resources in Val-d'Or East, situated in a conducive mining environment.
About Probe Gold:
Probe Gold Inc. specializes in acquiring and developing promising gold properties across Canada. They are dedicated to exploring high-quality gold projects, including the multimillion-ounce Novador Gold Project and a budding Detour Gold project. The company manages an extensive exploration ground of approximately 1,832 square kilometres, characterized by prolific gold mining belts. The recent Novador Preliminary Economic Assessment indicates a sustainable mining plan with an estimated annual gold output of 255,000 ounces over a 12.6-year lifespan.
The company's Val-d’Or properties report a substantial resource total of 6,728,600 ounces in the Measured and Indicated category and 3,277,100 ounces in the Inferred category across various gold trends.
On behalf of Probe Gold Inc.,
Dr. David Palmer,
President & Chief Executive Officer
For Further Information:
For more information, visit our website at www.probegold.com or reach out to:
Seema Sindwani
Vice-President of Investor Relations
info@probegold.com
+1.416.777.9467
Frequently Asked Questions
What is the Stella Property?
The Stella Property is a gold exploration site strategically located between Probe's existing mining properties, offering a significant opportunity for high-grade gold mining.
Why did Probe Gold acquire the Stella Property?
The acquisition aims to consolidate exploration efforts in an underexplored region and enhance the potential for new high-grade gold discoveries.
How does the acquisition enhance Probe Gold’s exploration strategy?
It aligns with the company's goal of increasing land holdings in a promising mining corridor, allowing for effective exploration synergy with existing resources.
What is the significance of the Lacoma gold zone?
The Lacoma gold zone has historical significance and potential, with previous intersecting samples indicating high-grade gold. It's underexplored, prompting renewed interest from Probe.
Who can I contact for more information regarding Probe Gold?
Seema Sindwani, the Vice-President of Investor Relations, is available for inquiries and additional information about the company and its projects.
