Atacama Resources International Inc. acquired the Tannahill Gold Property located 35 kilometers northeast of the prolific Kirkland Lake Gold Camp in northeastern Ontario. The multiyear deal will provide Atacama with a 100% interest in the property subject to a 2% Net Smelter Return with a buyback option.
Past work at Tannahill has identiﬁed two parallel, gold bearing structures: the Upper and Lower Zones.
Of the 28 diamond drill holes drilled into the gold bearing zones, 27 intersected significant gold values. The Lower Zone has returned the higher gold grades to date, including visible gold in four holes, and seems to hold the greatest exploration potential.
Crews are on site to locate the old cut lines and drill hole casings. All of the core from the 1998 drill program is available for evaluation and further analysis.
Future work will include geophysical surveys, prospecting, geological mapping and eventual diamond drilling to expand the existing gold zones.
“Good gold grades and widths, the proximity of the Tannahill project to existing infrastructure, and just 35 kilometers from an existing gold mining area makes this project extremely attractive,” President and CEO Colin Keith said. “This is another piece of the puzzle for our company and a key part of our continued development.”