Crystal Lake hits mineralization at Newmont Lake in BC
Crystal Lake Mining’s (TSXV: CLM; US-OTC: SIOCF) maiden drill program has uncovered a new copper discovery consisting of more than 20 mineralized zones at its 430 sq. km Newmont Lake project northwest of Eskay Creek in B.C.’s Golden Triangle.
Last fall the company drilled 550 metres across four reverse circulation holes at the project’s Burgundy Ridge target, hitting copper, gold and silver mineralization in every hole. The company now believes Burgundy Ridge is part of a 3 km long mineralized corridor.
Highlights from the drill program include 58.5 metres grading 0.31% copper, 0.27 gram gold per tonne and 1.41% silver from surface in the company’s fourth hole and 10.7 metres grading 0.41% copper, 0.32 gram gold and 2.7% silver from 5.2 metres down hole in its first hole.
Crystal Lake has the option acquire a 100% interest in Newmont Lake from Romios Gold Resources(TSXV: RG; US-OTC: RMIOF). To earn its interest, Crystal Lake must spend $8 million on exploration at Newmont Lake over the next three years, make staged payments to Romios totaling $2 million and issue Romios 12 million shares over a three year period.
Romios will retain a 2% net smelter returns royalty on the project that Crystal Lake Mining can halve for $4 million.
Shares of Crystal Lake Mining are currently trading at 27¢ with a 52-week range of 24¢ to $1.12. The company has a $20 million market capitalization.
(This story first appeared in The Northern Miner.)