SKRR Exploration (TSXV: SKRR) announced that it has signed a non-arm’s length option agreement to acquire, from Edge Geological Consulting, 100% of the Ithingo Lake property in Canada’s prairie region.
In a press release, SKRR explained that Edge is a company owned and controlled by Ross McElroy, a director of SKRR.
Recognition of the potential for gold at Ithingo Lake dates back to 1938, with the reported occurrence of gold associated with sulphide mineralization in metavolcanic-hosted quartz veins and in rusty silicified metavolcanics
The Ithingo Lake property is a contiguous land package consisting of 2,849 hectares. It is located in the north-central region of the province of Saskatchewan, 125 kilometres northeast of the village of Buffalo Narrows and approximately 235 kilometres to the northwest of the town of La Ronge.
According to SKRR, previous explorers Claude Resources, Newmont Exploration of Canada and Pine Channel drilled 57 holes in over 5,200 metres of historic drilling. The Main Zone drilling returned intersections up to 7.5m @ 11.5 g.t Au including 0.5m @ 138.97 g/t Au with visible gold in quartz veining.
“The Main Zone remains open along strike and at depth. Sterny and Sterny North Zones have potential for hosting significant high-grade gold,” the media brief states.
Under the terms of the agreement, SKRR may acquire a 100% interest in the project by paying C$50,000, issuing 2,000,000 common shares, granting Edge a 2% NSR royalty, and spending over $500,000 in exploration work.