Comstock Metals to acquire Select Sands’ properties in Canada

11 August 2016 (Last Updated August 11th, 2016 18:30)

Comstock Metals has signed an agreement to acquire Select Sands’ Preview SW gold project in the La Ronge district of Saskatchewan, and Old Cabin property in Ontario.

Comstock Metals has signed an agreement to acquire Select Sands’ Preview SW gold project in the La Ronge district of Saskatchewan, and Old Cabin property in Ontario.

Under the terms of the agreement, Comstock will acquire these properties for 20 million common shares in the capital of the company, as well as the assumption of certain liabilities associated with them.

Located 40km north of La Ronge, the Preview SW gold project database contains the results from 162 core holes, totalling 26,250m that were drilled between 1985 and 2013.

"Preliminary metallurgical test work at the deposit indicates that total gold recovery in concentrates ranged from 90% to 93%."

Of these, 136 were drilled on the main Preview SW deposit.

The main Preview SW deposit comprises several sub-parallel northeast-trending gold-bearing quartz-sulphide mineralised structural zones, 500m in strike length and totalling 150m in width.

Preliminary metallurgical test work at the deposit indicates that total gold recovery in concentrates ranged from 90% to 93%.

Select Sands’ 1,118ha Old Cabin project is located 80km northeast of Wawa, Ontario and 10km east of Richmont Mines’ Island Gold Mine.

Based on surface sampling and geological mapping, it was found that a total of 13 discrete gold zones were discovered on the property and all of them were associated with shear zones and iron carbonate alteration.

The completion of the transaction is subject to various conditions including obtaining of all necessary regulatory approvals.

Further, there can be no assurances that the transaction will be completed as proposed or at all.