Mining News: Northern Neighbors: Zonte moves in next door to Dublin Gulch

Zonte Metals Inc. Nov. 17 said it has signed a binding letter agreement to option and acquire full ownership of the McConnells Jest property, adjacent to Victoria Gold Corp.’s Dublin Gulch gold mine project in the Yukon. Sporadic exploration at McConnells Jest since 2010 has identified an intrusion related gold system that shows similarities to Dublin Gulch. Soil sampling has produced numerous multi-element anomalies, several of which correlate with discovered bedrock gold mineralization. Prospecting has successfully identified five bedrock target areas containing gold mineralization characteristic of intrusion related gold systems. Zonte said the most intriguing target, the Two-Four zone, was discovered this summer. This zone hosts a series of high density gold-bearing veins. Four additional gold zones in bedrock have been identified with limited exploration. “The McConnells Jest project is rare in that it offers the opportunity for multiple target potential and is located next to Victoria Gold's Dublin Gulch project, which hosts a global resource of 6.3 million ounces of gold,” said Zonte President and CEO Terry Christopher. Victoria Gold, led by CEO John McConnell, is nearing development of an open-pit operation at Dublin Gulch that is anticipated to produce 200,000 ounces of gold per year. To purchase full ownership of the neighboring McConnells Jest, Zonte must pay Bill Koe-Carson, C$150,000 over two years and issue the vendor 1.5 million common shares over three years. The claims are subject to a 3 percent net smelter return royalty, 2 percent of which can be purchased for C$2 million.

-Shane Lasley