In the direct vicinity of the historic Melba Mine in the Kirkland Lake gold district, Heritage Mining (CSE: HML, FSE: Y66, WKN: A3DTM6) has acquired twelve additional, unpatented mining concessions. They are directly adjacent to the mine, which was operated in the first half of the 20th century, and expand the area controlled by Heritage Mining to a total of approximately 3,886 hectares.
Peter Schloo, CEO of Heritage Mining, described the consolidation of the claims in the direct vicinity of the Melba Mine, in which Heritage is currently acquiring a 75 percent stake, as a significant step towards building a significant presence within one of Canada’s best-known gold mining areas. The acquisition of the new claims doubles Heritage’s footprint in the region located in northern Ontario.
The new claims were acquired from DH Exploration Inc. for CAD 30,000 in cash. In addition to this cash payment, 1,500,000 Heritage Mining common shares will be transferred to the seller. The cash component will be transferred in installments, with Heritage Mining transferring monthly installments of CAD 5,000 over a period of six months. The seller will also be granted a 1.0 percent net smelter royalty on the ores mined on the claims. The agreement must still be approved by the Toronto Stock Exchange to become valid, but this should happen in the next few days.
Heritage Mining operates in one of Canada’s most productive regions
The historic Melba Mine is located in the northwestern center of Ontario not far from the border with the province of Québec. The most important asset for Heritage Mining is its location within the highly productive Abitibi Greenstone Belt. Gold has been mined there consistently for over 100 years and the region is considered one of the most productive for gold mining in all of Canada.
In addition to the attractive geology, the Melba Mine also benefits from the excellent infrastructure. The town of Matheson is not far away and Highway 11, which runs from Kirkland Lake to Cochrane at this point, is about seven kilometers from the historic mine.
Especially in the vastness of Canada, such good access to the existing infrastructure is anything but a matter of course. For Heritage Mining, it includes the advantage of very easy access to the project. This advantage will help the company with the drilling planned for the near future on the project, because since the property is very easy to reach via existing roads, the expected drilling costs will also be significantly lower than for other gold projects.
