GANDER GOLD PROJECT
Gander Belt Gold T
he Company acquired, through staking, an additional 214 mineral claims in the Gander Belt of central Newfoundland. The claims contain or are on trend with known gold showings, epithermal mineralization characteristics or favorable geochemical signatures from regional lake and till samples. The Gander Belt extends over 100 kilometers from the north coast of Newfoundland to the south-central part of the island and is constrained by two regional structures, the Dog Bay Line to the west and the GRUB Line to the east. Newfound Gold Corp. has reported drill results within the belt of up to 92.86 grams/tonne gold over 19.0 meters including 285.2 g/t gold over 6.0 meters (Queensway project) as per a news release dated January 28, 2020. This, combined with other gold developments in the province and the rising price of gold, has resulted in a staking rush through out the belt. Vulcan’s new claims are accessible by paved and woods roads. On February 12, 2021, the Company entered into an Option Agreement with Sassy Resources Corporation (CSE: SASY, Sassy) whereby Vulcan has agreed to option to Sassy a 100% interest in the Gander Belt Gold properties (624 claims) in central Newfoundland. Pursuant to the terms of the Agreement, total aggregate consideration payable by Sassy to Vulcan is $400,000 cash over four years ($100,000 – payment recieved), exploration expenditures of $2 million over four years ($200,000 in Year 1), and 2.5 million shares of the company over four years (1,000,000 shares received). Vulcan will retain a 3% net smelter royalty (NSR) covering the 624 claims. Sassy has the right to repurchase one-half of that NSR (1.5%) for $2,000,000 in cash and 500,000 common shares within one year following delivery to Vulcan of a Feasibility Report on any deposit advanced on the properties. This deal provides the Company with a credible partner to advance exploration on these properties. A drill permit has been obtained from the provincial government in relation to the Gander North property where compelling gold in till anomalies warrant drill testing. Sassy plans to drill this property in 2021