BTU Metals (TSXV: BTU) has expanded its Dixie Halo gold project in Red Lake, Ont., by acquiring Burgudy Exploration and its 41.6 sq. km of prospective land in the area. Dixie Halo surrounds Great Bear Resource's (TSXV: GBR; US-OTC: GTBDF) Dixie gold project and raises BTU's total Red Lake land position to 129 square kilometres.
BTU will acquire Burgundy for 3.6 million shares. Burgundy's claims come with a pre-existing 2% gross smelter return royalty.
The company will call its new claims the Dixie Halo Southwest Extension. It is currently applying for permits to drill its Dixie Halo, Dixie Halo South and Dixie Halo Southeast gold properties, all contiguous to Dixie.
The company recently completed a sampling, mapping and drone survey program at Dixie Halo South. It flew 350 line km over 17 sq. km, near the northern property boundary with Great Bear, over an interpreted extension of Dixie's mineralized trend. The company is focused on the south property because it is close to the high-grade gold discovery Great Bear reported in late August 2018.
In that report, Great Bear said it cut 26.9 grams gold per tonne over 16.4 metres from 120 metres downhole, as well as 44 grams gold over 7 metres from 124.5 metres downhole at Dixie.
BTU has now flown a total 600 km of drone surveys at Dixie Halo. Dixie Halo South's vendor had previously taken grab samples and flown an airborne electromagnetic survey at the property. BTU has access to that data.
Shares of BTU are currently trading at 8 ? with a 52-week range of 3 ? to 14 ?. The company has a $3 million market capitalization. It aims to drill Dixie Halo South for the first time in 2019.