Stronghold Metals Inc. (TSX Venture: Z) is a Canadian mining exploration Company focused on the discovery and development of gold, copper and other metals properties in South America. The Company’s flagship property, Eagle Mountain in Guyana, has a NI 43-101 compliant resource estimate of 733,500 ounces of gold based on 179 drill holes totaling 24,203 meters.
Interesting to note is that more than 250,000 ounces of gold is hosted in saprolite rock, making it relatively easy to extract the gold at a low cost. It’s Stronghold’s intention to extract the gold from the saprolite host as fast as possible.
Moreover, results from an ongoing drill program, totaling 15,000 metres, show tremendous upside potential. To date, Stronghold announced analytic results on 46 holes of which 44 intersected gold mineralization of meaningful widths and grades, which is very exceptional, if not unique.
Most recent Company Report (If you’re unfamiliar with Stronghold Metals, start by reading this concise report)
On September 7, 2011, Stronghold entered into a Letter of Intent with Mowasi Gold Corp. to acquire a 95% interest in an area of approximately 8,300 hectares, contiguous to Eagle Mountain. Although the concessions are at an early exploration stage, alluvial mining activities indicate a high probability of finding gold on the property. This is another opportunity to expand the resource estimate of the Eagle Mountain/Mowasi area. An additional advantage is that future ore from both properties can be processed by one mill.
In 2012, Stronghold aims to publish an updated NI 43-101 resource estimate, which will include the results from the current drill program. The Company will commence mineralogical and metallurgical tests, an environmental base study and it also plans to deliver a Preliminary Economic Assessment on the soft rock saprolitic ore part of the property.
Here you’ll find our blog posts on Eagle Mountain.
In January of 2012, Stronghold significantly improved its Earn-in and Joint Venture agreement with Omai Gold Mines Ltd., a subsidiary of IAMGOLD Corp, to earn a 100% interest in the Eagle Mountain gold project in Guyana.
The most eye-catching change is that Stronghold doesn’t have to make anymore cash payments to fully acquire the property. The Company immediately receives a 50% stake in the property in return for the issuance of 7.5 million shares of Stronghold to Omai Gold. Moreover, Stronghold earns the right to acquire the remaining 50% interest in Eagle Mountain on or before April 30, 2013, by paying Omai Gold $1 million in cash or shares, at Stronghold’s discretion.
On January 7, 2012, Stronghold entered into a definitive Share Purchase Agreement with Kensington Court Ventures Inc. (TSX:KCT), a Capital Pool Company, whereby Kensington acquired 100% of the issued and outstanding shares of Stronghold’s wholly-owned subsidiary, Stronghold Brasil Mineração Ltda, which holds a 100% interest in the Tucuma gold project, located in the State of Para, Brazil.
Tucuma consists of 6 mining concessions comprising a land package of 11,456 hectares. Under the terms of the agreement, Stronghold will receive as consideration for the sale:
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16,300,000 common shares of Kensington, or approximately 52.3% of Kensington’s issued and outstanding shares. These shares will add about $4 million to stronghold’s balance sheet.
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Three seats on the Kensington 5-member Board of Directors.
Here you’ll find our blog posts on tucuma.
Overviews
Interviews with Yannis Tsitos, President and CEO of Stronghold Metals