Junior gold explorers, Novus Gold (TSX-V: NOV)(“Novus”) and Terra Ventures (TSX-V: TAS)(“Terra”) reported this morning that drilling on the REN property had indicated the presence of a “wide gold zone associated with an iron formation”.
The REN property, which is located 90 kilometres south-west of the past producing Lupin Gold Mine, is currently under option to Terra Ventures. Under the agreement, Terra Ventures can earn a 51% interest in the property by incurring C$1.5 million in expenditures on the property by December 31 2009. Terra Ventures is “currently in the process of giving Novus confirmation that this has been done.” Assuming Terra exercises the option Novus Gold will then have an option to repurchase the 51% stake by issuing 7.5 million shares, which would give Terra Ventures an 18.25% equity stake in Novus Gold.
Today Novus and Terra reported that it had intersected high grade gold which was typically associated with a banded iron ore formation in the Point Lake area. Gold assays ranged between 2 and 3 grams per tonne (g/t) over intersections between approximately 10 and 33 meters. Higher grade gold was intersected over narrower zones, including 22.4 g/t across 0.65 metres.
The nine hole drill program focused on a 200 meter strike and to a depth of 170 metres.
Disclosure: The author holds no positions in the company