Gold explorer Secova Metals has increased their chances of future acquisition with increasing their land holdings in Quebec’s prolific Abitibi belt
SmallCapPower | November 29, 2016: Despite recent weakness in the gold price, investor interest in many gold juniors has remained, in large part, steadfast. During the 2016 run up in gold-stock prices, an announcement by Secova Metals Corp. (TSXV: SEK) went largely unnoticed by the market, yet could turn out to be a big deal for its shareholders and the market.
Related: 5 Quebec Gold Juniors That Could Be Acquired Soon
On May 12, 2016, Secova announced an agreement with Globex Mining Enterprises to acquire 69 property claims known as “The Chenier Claims,” which are adjacent to Secova’s Duvay property. As a result, Secova will have a 7,065 hectare land package in Quebec’s Abitibi belt, which has produced more than 170 million ounces of gold since 1901.
The 69 acquired claims include the Grenadier West gold showing, which could be geologically related to Duvay’s gold structures, according to Secova. The Chenier Claims also include two claims just north of the original Duvay discovery where some of Duvay’s gold-bearing structures continue.
Duvay, which is situated along the eastern side of the Abitibi greenstone belt, hosts a historic resource from surface down to 50 metres of 6.7 million tonnes of 2.06 grams per tonne gold that Secova believes is amenable to open-pit mining, yet also has higher grade underground potential.
Most experts would agree that junior resource success stories are all about the people behind it. Secova Metals CEO and Chairman Brad Kitchen was the former President of Eagle Hill Exploration, advancing the high-grade Windfall Lake gold deposit in Quebec before the company was acquired by Oban Mining, which is now Osisko Mining Inc. (TSE:OSK).
In fact, Secova just announced (November 29, 2016) that it has acquired the Eagle River property, which consists of 77 claims or 4,354 contiguous hectares in the Windfall Lake gold district of Quebec.
The Eagle River project is located south of Osisko Mining’s Windfall Lake project and is adjacent to Bonterra Resources Inc.’s’ Gladiator property in the Urban-Berry area of Quebec. Secova’s management is intimately familiar with the structure of Windfall Lake as they developed the mineralization model for the project. The mineralization structure continues to the south and has been shown to strengthen as it hits Bonterra’s Gladiator project. Secova’s newly-acquired claims lie directly to the south of these recent discoveries.
“Secova has taken advantage of this rare acquisition opportunity to acquire the Eagle River claims that lie directly in the path of the known gold mineralization at the Windfall Lake Camp,” stated Secova Metals CEO and Chairman Brad Kitchen. “This is a strategic investment that will not divert funds from its exploration of the Duvay/Chenier claims but will add additional value for our shareholders as the Windfall Lake area develops.”
In a recent interview, Mr. Kitchen said in Duvay, which has had exploration work going back to the 1940s, he sees “real similarities to Windfall Lake.” Given Brad Kitchen’s history with Windfall Lake, don’t be surprised if Osisko Mining eventually comes knocking once more drilling has been done on the property and presuming these historic drill results can be confirmed. Osisko Mining has been aggressively buying up projects and properties in Quebec and Ontario over the past 18 months, but given Duvay’s location near Val d’Or and Rouyn-Noranda it could attract the interest of other gold-mining suitors as well.
To find out more about Secova Metals Corp., please visit the company’s Investor Hub.
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