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Metals Creek, Goldcorp deal over Dona Lake mine approved

The Dona Lake mine is located 9 kilometres southeast of the town of Pickle Lake (pictured). Photo by P199, Wikimedia Commons.

Metals Creek Resources (TSXV: MEK) received TSX-V approval to earn a 100% interest in Goldcorp Canada’s Dona Lake mine property, located 9 kilometres southeast of the town of Pickle Lake, northwestern Ontario.

In a media statement, Metals Creek said the project consists of 32 patented and leased mining claims totaling 430 hectares and covers the past-producing Dona Lake mine, an underground operation that was active from 1989 to 1994 and produced 246,500 ounces of gold at a grade of 7.44 grams per tonne.

“The Dona Lake mine property is located in the Pickle Lake Greenstone Belt which is host to several historic mines including the Dona Lake mine, the Central Patricia mine and the Pickle Crow mine,” the company said in a statement.

“Gold mineralization at Dona Lake is hosted within three prominent banded iron formations with the middle iron formation hosting the Dona Lake mine (Main Zone). The Main Zone remains open at depth with limited drilling along strike. Mining stopped at the 455 metre level with historic drill results below the 455-metre level that selectively include 13.62 gram per tonne gold over 13 metres, 8.74 g/t Au over 3.9 metres and 8.57 g/t Au over 2.8 metres.”

To move ahead with the acquisition, Metals Creek has to issue to Goldcorp Canada -the wholly-owned subsidiary of Newmont Goldcorp Corporation-  7,000,000 shares and spend $4 million in exploration over 36 months.

After vesting, Newmont Goldcorp will have a one-time option to elect to earn back 51% of the property by spending $4 million on exploration over the following 24 months.