QUEBEC -
Blue Thunder Mining has signed a letter of intent with
O3 Mining to acquire a 100% interest in O3’s Fancamp and Embry gold properties in the Chibougamau mining district.
In a press release, the companies explained that Fancamp comprises 37 contiguous mining claims covering an area of 19 sq. km, located approximately 55 km southwest of Chibougamau, within the archean Abitibi greenstone belt.
The property is strategically situated between Blue’s Muus and Muus East properties.
According to the miners, Fancamp is principally underlain by a sequence of northeast-striking, mafic, intermediate and felsic volcanic rocks and sedimentary rocks that are intruded by gabbro sills, granodiorite-tonalite and granitic intrusions, and their associated porphyritic dykes.
The Embry property, on the other hand, is an early-stage exploration project, approximately 17 km north of Fancamp and 25 km southwest of Chibougamau, made up of 11 contiguous mining claims covering approximately 6.7 sq. km.
Embry overlies the intersection of the east-west trending Kapunapotagen fault with several north-northeast trending shear-zones similar to those that are known to host gold mineralization in the Chibougamau mining district.
“The addition of O3’s Fancamp and Embry properties to our existing large land package of approximately 47,600 hectares in the Chibougamau area is very exciting indeed”, Blue’s chairman and CEO, Chad Williams, said in the media brief. “These new mineral claims have several defined gold zones with advanced drill-ready targets. We welcome O3, part of the Osisko Group, as a significant new shareholder in Blue Thunder.”
The terms of the LOI state that Blue will acquire a 100% interest in the properties by issuing 4.5 million common shares and a 2% net smelter return royalty over the properties granted to O3, subject to Blue having the option to buy-down to a 1% NSR for $750,000.
This story originally appeared on www.Mining.com.
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