War Eagle Mining Company Inc. (TSXV – WAR) (“War Eagle” or the “Company”) is pleased to announce that it has completed the purchase of the Deloye Family Claims (“Deloye Claims” or “the Claims”) located in the northeast corner of Teck and the northwest corner of Lebel townships, Ontario, 3.1 km north of the Kirkland Main Break. (Figure #1, #2 and #3.)
The Deloye Claims land package consists of eight patented mining claims, a total of 122 ha, with mineral rights on all eight claims and surface rights on four of the eight, bringing the current Goodfish Kirana land package to 3,418 ha from 3,296 ha. These claims contain the old shafts and trenches of the historical Kirana Kirkland Lake Gold Mine “Kirana Kirkland Mine”, which stopped production in 1936. The reported historical grades for the Kirana Kirkland Mine from the Ontario Department of Mines Vol.1 LVII (1) include “narrow high-grade streaks of $20 to $150 per ton in gold. The 2018 estimated equivalent is between 30 g/t of gold and 145 g/t of gold.
Under the terms of the acquisition, War Eagle has agreed to:
- Pay to Diane Deloye (“Deloye”), the sum of one-hundred and fifty-five thousand dollars (CAD155,000) upon the closing of the Transaction. The Company also agrees to pay all reasonable legal fees.
- Grant to Deloye a 1.5% royalty based on net smelter returns) (“NSR” or “Royalty”) on all mineral products produced from the Claims. The Company shall have the right to the buy-down or buyback 1% of the NSR for $1 million dollarsas per terms of the NSR Agreement.
Danièle Spethmann, President and CEO of War Eagle stated: “We are very pleased to have come to an agreement with the Deloye family on the acquisition of these claims. It is expected that the historic Kirana Kirkland Mine, located within the newly acquired Deloye Claims will be a rewarding exploration endeavor for War Eagle. The Mine’s historic shafts are located close to the intersection between the two major mineralized structures on our property, the Kirana Deformation Zone and the Goodfish Deformation Zone. Exploration on a small part of this land package was completed in the late 1980’s and the rest of the claims have not been efficiently explored to any depth for more than 30 years. We look forward to exploring this prospective ground and anticipate that it will generate positive results for War Eagle.”
History of the Deloye Claims
The patented claims and the surface rights have been owned by the Deloye family since the 1970’s.
The historical records from the Ontario Department of Mines report that up to 1917, the La Belle Kirkland Mines Ltd. developed six shafts and trenches. Shaft No.1 on claim L1751 was the most developed with an inclined shaft to a depth of 300 feet. This shaft was subsequently deepened to 360 feet, with 1,150 feet of lateral work undertaken at the …read more
From:: Investing News Network