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Manhattan Corporation Ltd (ASX:MHC) is set to take on a relatively underexplored project in Canada which includes a high-grade gold deposit and a cluster of gold and polymetallic prospects built around volcanogenic massive sulphide (VMS) mineralisation.
The company has entered a binding agreement for acquisition of the Hook Lake project – located in Canada’s eastern Nunavut territory – which has remained almost untouched since 1988, when a foreign estimate resource of 3.4 million tonnes (Mt) at 2.38 grams per tonne (g/t) (or around 285,000 ounces) of gold.
The latter – known as the Turquetil Lake gold deposit – has significant exploration potential, with the resource remaining open in all directions, and having a strike length of 940 metres.
Adding to this is the fact that historical drilling only reached a vertical depth of 190 metres, but picked up significant gold intercepts, including 27.58 metres at 3.33 g/t Au from 44.35m, including 13.01m at 6.29 g/t Au from 53.04m; and 15.2m at 4.50 g/t Au from 14.70m.
The project also includes the Heninga Lake prospect, which is built around a VMS system, with drilling picking up intercepts such as 10.51m at 2.91% copper (Cu), 6.70% zinc (Zn), 95.67 g/t silver (Ag), 1.04 g/t Au & 0.48% lead (pb) from 41.76m; and 13.71m at 1.51% Cu, 2.06% Zn, 47.23 g/t Ag 0.56 g/t Au & 0.09% Pb from 70.26m.
Manhattan also announced that Gavin Rezos will be joining the company board as a non-executive director, and Eric Sondergaard will join as technical advisor upon completion of the proposed transaction.
Mr Rezos was most recently the founding chairman of Vulcan Energy – which moved from a market cap of $10 million to over $1 billion, while Mr Sondergaard held a key role in planning exploration at White Cliff Minerals’ Rae project, delivering an exceptional hole consisting of 175m at 2.5% Cu from 7.6m and ending at 4.46% Cu, remaining open at depth.
The latter project is also located in Nunavut.
Manhattan CEO Kell Nielsen said these additions to the team would help with the exploration and development of Hook Lake.
“The acquisition of the project brings with it a highly experienced and successful team, expected to join Manhattan’s Board and management upon completion,” he said.
“This team will play a critical role in unlocking value by advancing the historically defined high grade Turquetil Lake gold deposit through modern exploration techniques and by honouring the current agreement with Inuit landowners.
“Upon the transfer of the Project, there is a clear pathway for Manhattan to test the mineralized system further along strike and at depth at Turquetil Lake and deliver near term maiden mineral resources.”
Manhattan shares have moved up since the news, and at 10:26 AEST, they were trading at 2.8 cents – a rise of 64.71% since the market opened.
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