Enforcer Gold Corp (TSX-V: VEIN) announced that it plans to complete a non-brokered private placement of up to $1.5 million and acquire a property in the historic mining community of Red Lake, on top of issuing a share consolidation.
The property that the Toronto-based miner wants to buy is called the McKenzie Gold property and it is located just northwest of Red Lake, the third largest gold camp in Canada with a record gold production of 29 million ounces.
McKenzie comprises 15 contiguous claims covering 1,348.5 hectares within the western portion of the Red Lake gold camp. It is underlain by felsic intrusive rocks of the regionally significant Dome Stock and by sheared greenstone rocks locally intruded by gabbroic sills and dikes.
Enforcer said that drilling in 2005 by Cypress Development Corp. in the southern portion of the project area outlined a strongly silicified and sericite altered east-west trending zone within the Dome Stock that is 600 m long and open on strike and to depth.
"Quartz veining accompanied by sphalerite, arsenopyrite, chalcopyrite, and free gold returned gold values up to 24.0 g/t including 2.2 g/t Au over 6.0 m. "This zone lies ~3.4 km west of the Premier Gold Mines' Central Zone (Hasaga Project) with reported indicated and inferred pit-constrained resources of 804,000 oz (0.79 g/t) and 583,000 oz (0.76 g/t), respectively," the company said in a statement about the acquisition.
In the brief, Enforcer added that more recently, a prospecting program carried out in 2017 discovered two new areas of gold mineralization within quartz veins on McKenzie Island and that results of grab samples taken from a flat-lying quartz vein in the Dome Stock near the southern edge of the island ranged 9.37 to 331.14 g/t gold.
"Enforcer's management believes that the McKenzie Gold property acquisition provides the Company with a high-quality, early-stage exploration project in an established gold camp," the release reads.
In order to buy the property, Enforcer has to pay $150,000 to the vendor and issue 2,000,000 post-Consolidation Shares of the Company to 1082545 BC. Ltd and 2,000,000 post-Consolidation Shares of the Company to 1156009 B.C. Ltd.
Despite this new acquisition, management said the company's primary focus will continue to be on the Roger gold-copper project located in Chibougamau, Quebec.