Cougar Metals exercises option for 51 per cent of Canadian gold project

THE BOURSE WHISPERER: Cougar Metals (ASX: CGM) has exercised its Option Agreement with Kenora Prospectors & Miners to acquire a 51 per cent interest in the Shoal Lake gold project located in the Province of Ontario, Canada.

“This agreement marks a change in focus for Cougar’s exploration team and provides shareholders with the opportunity to participate in a project which has proven gold mineralisation, a large scope and strong near term mining potential with excellent logistics,” Cougar Metals managing director Randal Swick said in the company’s announcement to the Australian Securities Exchange.

“Whilst maintaining our exploration interests in Brazil’s promising Alta Floresta gold belt, we hope to move quickly to a viable gold production scenario in Ontario.”

 

Project location map. Source: Company announcement

 

The Shoal Lake project comes to Cougar with detailed historical exploration data.

The project includes of 6.5 square kilometres in patented claims encompassing two past gold producers and several gold occurrences describing at least 3 interpreted gold bearing trends from 13 vein structures.

Gold in the project area was first discovered in 1880’s resulting in the development of two mines on the property.

The Mikado mine, situated on the property, was discovered in 1893 and produced of over 30,000 ounces of gold (approx. 58,000 tonnes averaging 16.4g/t).

The Cedar Island mine (formerly the Cornucopia mine) was developed from an inclined shaft in 1897 and produced approximately 1,100 ounces of gold.

The mine reopened in 1935 and from a vertical shaft had a recorded production of 5,250 ounces of gold (from 16,997 tonnes averaging 9.6g/t) until 1936.

Other gold occurrences on the property include the Cedar Mainland Zone, McKinnon Reef, Sirdar No.1 and 2, Bullion No. 1 and 2, Old Ontario Veins 6 and 11, No. 3 Vein, Mikado Bay Zone, and the Grano Zone.

The Grano Zone was discovered in 1981 with intersections up to 10.63 grams per tonne gold over 2.4 metres.

In excess of 30,000 metres of diamond drilling has been completed on the property to 2004.