Delta doubles land position to more than 100 square km near Thunder Bay

By Kevin Vincent

Delta Resources Limited kicked off the summer exploration season by announcing the expansion of its Delta-1 property in Thunder Bay and a message from the company’s president to investors that drill results may come as a Christmas present this year.

The company has doubled its land position and acquired exclusive rights to four additional mineral exploration properties, totaling approximately 4,716 hectares. These properties are contiguous to the Delta-1 property package and extend the land position on strike with the Eureka gold deposit by over 4.5 kilometers.

“So far since the end of April, until now we’ve drilled 15 drill holes for just under 5,000 meters,” said President Andre Tessier in a summer video message to investors. “Right now, the delay between the time the core comes out of the ground and is fully assayed is anywhere between six weeks and eight weeks. So please be patient. We’re going to come up with some assay results shortly and hopefully you’ll be satisfied with them as we are.” Delta has $10 million in its treasury. The company did a bought deal financing of the 17th of May with Cormark Securities and Desjardins and Hayward. “We have money in the treasury to be drilling these holes. We have an extensive play. We’re going to be drilling to expand the deposit on strike at depth everywhere. And we’re also drilling to gather some geological information that helps us better locate the rest of the deposit, understand it better, and come up with additional targets at the property scale.” One of the newly acquired properties is a 59-hectare piece of patented ground, including surface and mining rights, located next to the Delta-1 property and on strike to the Eureka deposit. Delta conducted due diligence and discovered grab samples returning up to 10.0 grams per tonne of gold. The company has entered into a five-year lease agreement with the landowner, granting Delta exclusive exploration rights. During this period, Delta has the option to purchase 100% interest in both surface and mining rights by paying market value times ten. For the lease, Delta has made a one-time cash payment of $90,000. If Delta chooses to buy the property during the lease, the landowners will retain a 2% net smelter returns (NSR) royalty, with Delta having the option to buy back 1% for $1,000,000 and the remaining 1% for $4,000,000. No work commitments or shares of the company were issued.

The second exploration property consists of 23 claims covering approximately 2,348.5 hectares, located immediately south of Delta-1. Delta acquired a 100% interest in this property by making a onetime cash payment of $50,000.

The vendor retains a 2% NSR, which Delta can buy back 0.5% for $1,000,000 and an additional 0.5% for $1,000,000, with the remaining 1% available for $4,000,000. No work commitments or shares of the company were issued.

The third exploration property consists of 97 claims covering 2,056.4 hectares, located south of Delta-1. Delta paid $50,000 upon signing and will make an additional $50,000 payment on each of the first, second, third, and fourth anniversaries, totaling $250,000. The vendor retains a 2% NSR, which Delta can buy back 1% for $1,000,000 and the remaining 1% for $4,000,000. No work commitments or shares of the company were issued. The fourth exploration property comprises 12 claims covering approximately 252 hectares, contiguous and south of the Delta-1 property. Delta acquired 100% interest in this property by making a onetime cash payment of $45,000. The vendors retain a 2.0% NSR royalty, which Delta can buy back 1.0% for $1,000,000 and retain a first right of refusal for the remaining NSR (up to $4,000,000). No work commitments or shares of the company were issued.

With these acquisitions, Delta now controls an area of approximately 107 square kilometers within the Shebandowan Structural Zone of the Shebandowan Greenstone Belt. The Delta-1 property, located in the Shebandowan Greenstone Belt, now covers a 20-kilometer strike extent of the Shebandowan Structural Zone, which is also home to the 6 million-ounce Moss Lake gold deposit situated approximately 50 kilometers to the west.