Gossan Acquires Sturgeon Lake Property with Zinc-rich Polymetallic Potential

Winnipeg, Manitoba–(Newsfile Corp. – July 28, 2016) – Gossan Resources Limited (GSS-TSX.V) (GSR-Frankfurt/Freiverkehr & Xetra) has acquired a new property in the zinc-rich polymetallic Sturgeon Lake Greenstone Belt in northwestern Ontario comprised of 15 claims totaling 3,344 hectares. The property is directly along strike and to the east of 6 Volcanogenic Massive Sulfide (VMS) deposits that were mined between 1970 and 1991. Approximately 18.7 million tonnes of ore was mined from these VMS deposits with typical grades of 8.0% zinc, 1.1% copper, 0.8% lead, 120 gpt silver and 0.5 gpt gold.

In November 2015, the Company staked three claims and recently acquired an additional 12 claims from Excalibur Resources Ltd. along with a significant amount of exploration data. Recent work now in the possession of Gossan includes: a VTEM electromagnetic geophysical survey by Geotech Ltd.; an Enzyme Leach geochem survey and a Soil Gas Hydrocarbon geochem survey, both processed by Actlabs; and results from a limited drill program on the eastern portion of the acquired claims. Gossan believes the best geophysical targets have yet to be drill tested. They are located on the west end of the new property and are along strike and closest to the historic Sturgeon Lake ore deposits.

Douglas Reeson, President of Gossan Resources stated: “Gossan acquired the property to explore what it believes are the most prospective untested targets along the historic Sturgeon Lake Camp. Management believes this property has the potential to host significant Zinc-rich VMS polymetallic deposits. Gossan is well positioned to take advantage of the current rise in zinc prices, supported by the abundance of copper and silver in the Sturgeon Lake Camp”.

The most notable former mines in the camp produced from high-grade zinc-copper-silver ores with associated lead and gold. These properties are currently held by Glencore and First Quantum Minerals. The well-known Mattabi, Lyon Lake and Sturgeon Lake mines operated in proximity and along strike just to the west of Gossan’s new property. The grades and tonnages of these former producers are provided in the table below.

Historical Production from Mineral Deposits of the Sturgeon Lake Mining Camp*

Grade
DEPOSIT Zn
(wt.%)
Cu
(wt.%)
Pb
(wt.%)
Ag
(g/t)
Au
(g/t)
Metric
Tonnes
F Group 9.51 0.64 0.64 60.4 - 340,000
Mattabi 8.28 0.74 0.85 104.0 - 11,400,000
Lyon Lake and
SubCreek Zone
6.53 1.24 0.63 141.5 0.5 3,945,000
Creek Zone 8.80 1.66 0.76 141.5 0.5 908,000
Sturgeon Lake 9.17 2.55 1.21 164.2 0.5 2,070,000

* Franklin et al (1995), Geology of Canadian Mineral Deposit Types: GSC

As of March 31, 2016, Gossan had incurred acquisition costs for this property of $12,800.

Hamid Mumin, P.Geo., a Gossan Director is the Company’s Qualified Person and he has reviewed and approved the technical contents of this news release.

Gossan Resources Limited is engaged in mineral exploration and development in Manitoba and northwestern Ontario. It has a well-diversified portfolio of properties hosting gold, platinum group and base metals, as well as the specialty and minor metals, vanadium, titanium, tantalum, lithium and chromium. The Company also has a large deposit of high-purity, magnesium-rich dolomite and various financial interests in a frac sand deposit. The company trades on the TSX Venture and the Frankfurt/Freiverkehr & Xetra Exchanges and currently has 33,170,400 common shares outstanding. Read the press release here.

Timeline

Learn how VTEM technology mapped the Sturgeon Lake Property

Sturgeon Lake VTEM Survey Finds Conductance and Magnetic Anomalies That Are Consistent With VMS Deposits

Excalibur Resources Ltd – Sturgeon Lake Property (website as PDF)

Sturgeon Lake Property

Gossan to acquire Excalibur Resources and its Sturgeon Lake - VTEM data

Gossan to acquire Excalibur Resources and its Sturgeon Lake – VTEM data

Category: News Story

You Might Also Be Interested In