Precipitate Gold (TSXV: PRG; OTC: PREIF) has received approval from the Toronto Stock Exchange to acquire the 123.5-sq.-km Motherlode gold project in Newfoundland's Burin Peninsula.
Precipitate will issue 395,000 common shares and pay $27,000 to the vendor. Additional shares and cash payments will be made over the next four years. At the end of the period, Precipitate will own 100% of Motherlode subject to certain net smelter return royalties.
The property hosts 11 historical mineral occurrences, including eight gold showings. Eight diamond drill holes done in 2007 returned promising results such as 0.7 metre of 3.2 g/t gold, 10.4 metres of 9.82 g/t gold, and 1.5 metres of 2.8 g/t gold. The best grades were found in grab samples that ranged from 4.5 g/t to 25 g/t gold.
The Precipitate team is reviewing historical data and has applied to conduct a heliborne geophysical survey in September. Various surface sampling and field follow-up are planned, leading perhaps to a 5,000-metre diamond drill program.