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Kapuskasing goes after gold in Newfoundland’s Gunners Cove area

by Greg Klein | January 9, 2018

A possibly unique discovery by another company has brought Kapuskasing Gold TSXV:KAP back to Newfoundland’s Great Northern Peninsula. The company staked three blocks totalling 1,625 hectares near the town of St. Anthony, proximal to White Metal Resources’ (TSXV:WHM) Gunners Cove project. Last November White Metal announced highly anomalous gold and other metal values in samples taken from black shale on a wide area of the property, which had previously seen very little exploration.

Kapuskasing goes after gold in Newfoundland’s Gunners Cove area

Kapuskasing’s new turf covers “the same favourable geology,” the company stated. “This could potentially be a very important new discovery in a unique geological environment similar to that of other large gold deposits hosted in black shale environments around the world.”

“It’s grassroots, but these early days are interesting,” Kapuskasing president/CEO Jon Armes tells ResourceClips.com. “We need a presence there because this looks like it could turn into a whole new camp, a whole new geological environment that’s underexplored. And the best way to position yourself is by staking claims, with the advantage of having 100% interest with no underlying royalties. I think we’ll get more insight after the snow’s gone, when people get their boots on the ground and take a closer look.”

Kapuskasing intends to compile an exploration program over the next few months.

The acquisition expands the company’s Great Northern presence. In September Kapuskasing finalized a 100% option agreement on Daniel’s Harbour, roughly 200 kilometres southwest. The former zinc mine produced around seven million tonnes averaging 7.8% zinc between 1975 and 1990 from a Mississippi Valley Type deposit.

Off the peninsula but close to Newfoundland’s northern coast, assays are expected soon from Kapuskasing’s flagship Lady Pond project, where drilling began in November. Recent grab samples and historic, non-43-101 drill results have returned high copper grades.

Read Isabel Belger’s interview with Kapuskasing Gold president/CEO Jon Armes.

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