After agreeing to buy the Bonanza property at the north end of Vancouver Island in January, Hawkeye Gold & Diamond (TSX-V:HGO) is doubling the size of its project portfolio, saying Friday morning that it acquiring the Barkerville 2 Aces Project. The 5,044-hectare project is located about 32 kilometers southeast of the town of Barkerville, the main town of the Cariboo Gold Rush in British Columbia, which dates back to 1860.
About five million ounces of gold were produced in the region from 1861-1987.
The 2 Aces project lies within the same geological formation as Barkerville Gold Mines' ongoing gold exploration and mine development projects, including Island Mountain, Cow Mountain and Bonanza Ledge. Barkerville Gold has drilled more than 130,000 metres at its properties in the district with promising results.
Being on strike with the Cariboo structural trend that transects many past producing mines has Hawkeye is optimistic 2 Aces can deliver as well. Previous work at the property includes geological mapping, airborne geophysics and reconnaissance soil and stream geochemistry surveys with known anomalies for gold, arsenic and other heavy metals.
Hawkeye has agreed to pay C$9,000 in cash and issue 50,000 shares (worth about C$4,500 at 9 cents per share) for the property initially. Should the 2 Aces Property make it to a pre-feasibility study, Hawkeye will own another 250,000 shares to the current unnamed owner. The project is not subject to a net smelter royalty.
Shares of HGO are flat at 9 cents in Friday trading, with only 25,000 shares changing hands.
