Previously, Searchlight had met all the conditions attached to the option. On June 30, 2021, Searchlight made a payment of CAD 100,000 and issued 166,667 shares to New Moon Minerals. In August 2021, the Company completed the required exploration expenditures of CAD 750,000 to satisfy the 75% option.
Chairman Alf Stewart recalls the backstory, "Bootleg Lake was Searchlight's first project in Saskatchewan, and this has provided Searchlight with the opportunity to acquire a portfolio of high-grade gold, copper, zinc, cobalt, vanadium, uranium and rare earths projects in one of the best jurisdictions for mining investment in the world."
The Bootleg property consists of 20 contiguous claims totaling 52 square kilometers (Map 1), with core claims valid until 2040. The project area hosts four past-producing gold mines, including three mines - Rio, Henning-Maloney and Newcor Gold - with historical resource estimates. Aside from the known deposits, there are several additional gold and copper occurrences on the claims, including volcanogenic massive sulphide (VMS) targets.
To advance the property, the Company has undertaken two drill programs: 2018 at the Rio Mine and 2021 at the Henning-Maloney Mine. The two drill programs were designed to confirm historical gold mineralization and test mineralization at greater depths.
Searchlight CEO Stephen Wallace, commented, "Searchlight has been encouraged by the exploration results to date as the drilling has expanded the zones of known gold mineralization, including results at Henning-Maloney that indicate multiple vein structures starting near surface. In addition, geophysical surveys indicate that three of the past producing mines are part of the same 4 kilometer long structure."
Map 1: Location of Bootleg Lake option claims relative to Flin Flon.
The 2018 drill program focused on the Rio Mine and drilled beneath 1,500 meters of historic underground workings to confirm gold mineralization at a depth of approximately 200 meters. Significant results include:
- 5.24 g/t gold over 4.0 m, including 12.24 g/t Au over 0.50 m in DDH BL-01
- 2.09 g/t gold over 19.0 m in DDH BL-01
- 2.45 g/t gold over 5.0 m in DDH BL-02
The 2021 drill program focused on the Henning-Maloney Mine and confirmed gold mineralization to a depth of approximately 150 metres, which is approximately three times the depth of the 1940 mine. The total of 11 gold intercepts in the three diamond drill holes include:
- 4.15 g/t gold over 0.95 m in hole HM-21-01
- 1.16 g/t gold over 9.75 m in drill hole HM-21-02
- 8.4 g/t gold over 0.7 m in hole HM-21-02
31.59 g/t gold over 1.0 m in hole HM-21-03
Summary: Things had been quiet around Searchlight over the long summer. This is testing the patience of some shareholders, but Searchlight's overarching investment thesis is fully intact. The company is gathering promising assets in a mining camp (Flin-Flon) that has been forgotten by the market. Because of this, Searchlight is able to acquire high quality properties at knockdown prices and has become the third largest landowner in Saskatchewan, barely noticed. The Bootleg Camp acquisition is another example of CEO Steven Wallace's skill and tenacity. A minority stake of 25 percent doesn't really make sense for the former owner. You would think both parties could work out a mutually beneficial deal.
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