Winnipeg, Manitoba--(Newsfile Corp. - September 1, 2020) - Gossan Resources Limited (TSXV: GSS) (FSE: GSR) has entered into a mineral property acquisition agreement to acquire a 100% interest in the Gander Gold Property located just outside Gander, NL.
The 9,050-hectare Gander Gold Property is immediately adjacent to the Queensway property along the Central Newfoundland Gold Belt owned by New Found Gold Corp., where discovery hole 19-01 recently intercepted 19.0 metres of 92.86 gpt gold, including 6.0 metres of 285.2 gpt gold (New Found Gold Corp. Final Prospectus, page 65, dated July 31, 2020). Gossan's Gander Gold Property is approximately 10 km east and northeast of the NFG discovery hole and hosts both parallel and cross-cutting structures. Management cautions that mineralization on properties in proximity to the Gander Gold Property is not necessarily indicative to the presence of mineralization that may be hosted on the company's property.
Douglas Reeson, President of Gossan stated, "We are pleased to get our new gold initiative out of the gate with a highly prospective gold project in Newfoundland near the recent discovery hole by New Found Gold. Management is formulating a work program for the property this Fall."
The Gander Gold Property has excellent infrastructure. The Trans-Canada Highway and Route 330 transect the property and within the property there are a number of gravel roads and logging trails that provide access.
Pursuant to the acquisition agreement, dated August 31, 2020, to acquire a 100-per-cent interest in the Gander Gold Property from an arm's-length party, the Company will issue, subject to the approval of the TSX Venture Exchange, 2.1 million common shares of the Company; reimburse staking costs of $21,125; and grant a 2% net smelter returns royalty, subject to re-purchase of 1% of the NSR for $1,000,000. The completion of the acquisition remains subject to receipt of all necessary regulatory approvals.
The property area is situated along a major geological contact between the Dunnage zone to the west and the Gander zone to the east. The Gander River Complex and Davidsville Group make up the eastern part of the Dunnage Zone and the Gander Group makes up the western portion of the Gander Zone. This region is located within the Central Newfoundland Mobile Belt and part of the Appalachian tectonic zone, which had numerous orogenic events.
Deformation in the Silurian to Devonian periods resulted in crustal thickening through imbricated thrust fault slices, regional greenschist and amphibolite grade metamorphism, and crustal melting resulting in widespread structural deformation and plutonism. Gold mineralization is related to these orogenic events.
Gold is associated with quartz veins and alterations superimposed on a sequence of dominantly sedimentary rocks. The major suture between the two tectonostratigraphic zones of the Dunnage and the Gander zones is known as the Gander River Ultramafic Belt, or GRUB line, and is made up of mafic volcanics, ultramafics and gabbro intrusions. This area was actively explored in the past for base metals. Till sampling work by Noranda in the 1980's helped show the gold potential of the area.
Most of the gold exploration in the region has been undertaken in the Dunnage zone. Some companies are also exploring in the Gander Group for gold.
Historic information on the Gander Gold Project, particularly in regard to historical exploration, neighbouring companies, and government geological work provides an indication of the exploration potential of the property but may not be representative of expected results.
Hamid Mumin, Ph.D., P.Geo., a Gossan Director, is the Company's Qualified Person and he has reviewed and approved the technical information of the mineral properties in this news release.
Gossan NFLD Fault Map
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Gossan Resources Limited continues to seek new financeable resource projects in Newfoundland, Manitoba, Ontario, and throughout North America. The Company is launching a new gold initiative with this acquisition of the 9,050-hectare Gander Gold Property in Newfoundland. The Company holds a broadly diversified portfolio of multi-element properties prospective for hosting base metals and platinum group elements, as well as specialty "green-battery metals", vanadium, titanium, tantalum, lithium and chromium. Gossan also has a deposit of high-purity, magnesium-rich dolomite, and holds a $100,000-per-annum advance and production royalty interest in a silica frac sand deposit. All of Gossan's mineral exploration and development properties are located in Manitoba, Northwestern Ontario and now, Newfoundland. The Company's most recent focus is the exploration of its Sturgeon Lake Property, located in the zinc-copper-silver rich polymetallic Sturgeon Lake Greenstone Belt of Northwestern Ontario. The Company trades on the TSX Venture and the Frankfurt/Freiverkehr & Xetra Exchanges and currently has 37,908,900 common shares outstanding.
For further information, please visit www.gossanresources.ca or contact:
Douglas Reeson, Chairman & CEO
Gossan Resources Limited
Tel: 416-533-9664
E-Mail: info@gossan.ca
Kathy Ringland, Office Manager
Tel: 204-943-1990
James Doyle
Generic Capital
Tel: 647-988-8757
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
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