Marvel Discovery (MARV.V) announced they have acquired 420 new claims totalling 10,250 hectares.
The claims are ~45 km south of Gander, NL, close to the boundary between the Exploits Subzone and the Newfoundland’s Gander Zone. The new claims are approximately 10 km east of the northeast-trending Dog Bay-Appleton-Grub Line fault system host to Newfound Gold’s (NFG.V) Queensway Gold project. Newfound Gold recently announced drilling results from their Queensway Gold project which contained an interval of 146.2 g/t Au over 25.6m. Since the release of these results, NFG’s share price is up over 40%.
The Property is around the Dog Bay-Appleton-Grub Line fault system, a crustal-scale fault zone that extends from the north coast of Newfoundland 200km southwest through Gander. There are quite a few mining companies operating in this area, including the aforementioned Newfound Gold, as well as Marathon Gold (MOZ.T) and Exploits Discovery (NFLD.C). Marathon’s Valentine Gold Project, which is located in the same structural corridors in central Newfoundland, hosts 6.0 million ounces of gold.
NFG is currently undergoing a huge 200,000m drilling program at their property, meaning they will have a fairly solid picture of the quality of their asset in the near future.
According to the press release, “preliminary structural interpretation shows the area is characterized by major northeast-trending structures, which parallel the Dog Bay-Appleton-Grub Line fault system and can be traced for approximately 35 km to the southwest and 60 km to the northeast where historical gold occurrences (e.g. Star Track, West Tower, Wing Pond) are observed in proximity to regional-scale granites of the Gander Zone.”
Buying up claims adjacent to a booming mine is a classic move, and Marvel executed the deal fairly quickly. NFG is currently undergoing a huge 200,000m drilling program at their property, meaning they will have a fairly solid picture of the quality of their asset in the near future.
“The Gander South property compliments the Victoria Lake and Slip Gold projects already under the Marvel umbrella in Central Newfoundland. This adds 10,000 plus key hectares adjacent to Newfound Golds Queensway project. Marvel continues to add shareholder value by building an impressive portfolio of holdings – we are looking forward to commencing our field work programs in Newfoundland,” commented Karim Rayani, President and Chief Executive Officer of Marvel Discovery.
Since the announcement, Marvel’s share price is up a cent and a half, and is currently trading at $0.11.
Full disclosure: Marvel Discovery is an Equity Guru marketing client.