Fredericton, New Brunswick–(Newsfile Corp. – November 23, 2020) – TRU Precious Metals Corp. (TSXV: TRU) (“TRU” or the “Company”) is pleased to announce that its wholly-owned subsidiary has entered into an asset purchase agreement dated November 20, 2020 (the “Purchase Agreement”) with several arm’s length vendors (the “Vendors”), in respect of a mineral license for the Stony Lake exploration property in Central Newfoundland (the “Stony Lake Property”), along with all related permits and technical data (collectively, the “Purchased Assets”).
The Stony Lake Property is located approximately 5-10 kilometres (km) south of the Company’s flagship Twilite Gold Project and consists of 107 claims covering 2,675 hectares.
TRU Co-Founder and CEO, Joel Freudman commented, “We view the Stony Lake Property as the final mineral property investment in what is only the first phase of our value creation plan for our Newfoundland Gold Exploration portfolio. This acquisition further bolsters TRU’s district-scale presence in the Central Newfoundland Gold Belt, along with our other properties at Gander West, Twilite Gold, and Rolling Pond.”
Historical lake sediment surveys at the Stony Lake Property show anomalous gold, arsenic, and antimony, and a radiometric survey shows potassium anomalies suggestive of areas of alteration. The geological environment is consistent with an epithermal model for gold mineralization in areas of Silurian, subaerial volcanism and extensional tectonics, including extensive units described as pyritic rhyolite. Two large lobes of sericitized/silicified altered rhyolite measuring approximately 4km x 3km and 3.5km x 3.6km were mapped in the late 1980’s. Work by Battle Mountain Canada Inc. (“Battle Mountain”) in 1989 and 1990 identified a new mineralized zone called the “Cliff Showing”. It consists of strong sericitization and pervasive silicification associated with disseminated pyrite and arsenopyrite mineralization with weak gold values (Source: Battle Mountain (Canada) Inc. Geology and Geochemistry of the Rattling Brook Property in Newfoundland Department of Natural Resources: Geofiles 002D/0228).
The Stony Lake Property shares an overall tectonic and temporal similarity with the Pagingo / Drummond Basin deposit formerly operated by Battle Mountain in Queensland, Australia. The Drummond Basin hosts a number of significant, high-grade epithermal gold deposits, with the most notable being the approximately 3 million ounce Pagingo field (Source: Andromeda Metals website). This represents a sizable, comparable exploration model.
The Stony Lake Property has not been recently explored. However, a 1989 till sampling program by Battle Mountain carried out over an area with the highest disseminated pyrite/arsenopyrite enrichment produced 7 samples bearing visible gold, out of a total of 37, which results were not duplicated in a 1990 program (Source: Battle Mountain (Canada) Inc. Geology and Geochemistry of the Rattling Brook Property in Newfoundland Department of Natural Resources: Geofiles 002D/0228). Battle Mountain did not drill test the prospective areas but concluded that arsenic +/- gold +/- antimony bedrock anomalous areas in the Cliff Showing and the area southeast of Miguel Hill, together with their associated surficial geochemical anomalies, may be indicative of an upper arsenic zone in an otherwise concealed epithermal system. Consistent with Battle Mountain, the target for the Stony Lake Property would be a buried epithermal system below the extensive pyritic/arsenopyritic lithocap exposed at the Cliff Showing and elsewhere on the Stony Lake Property.