What a Scoop! Kapuskasing to Acquire Past Producing Zinc Mines

​Today, Kapuskasing Gold Corp. announced its intent to acquire the Daniel’s Harbour Zinc Property, located on the Great Northern Peninsula of Newfoundland in Canada, approximately 10 km northeast of the community of Daniel’s Harbour.

This property (1,050 hectares) has been explored and developed by one owner, Teck Resources, after discovering Mississippi Valley Type (“MVT”) carbonates rich in zinc mineralization. Between 1975 and 1990, Teck mined about 7 million tonnes of ore averaging 7.8% zinc from the Daniel’s Harbour Mine. Characteristically, MVT deposits occur in clusters and are referred to as “districts”.

Most recently, Altius Minerals Corp. (current market capitalization: $478 million CAD) has staked up a significant land position surrounding the Daniel’s Harbour Zinc Property as can be seen in the accompanying map.

Most interestingly, the vendor of the Daniel’s Harbour Zinc Property has chosen Kapuskasing (and not Altius or another senior) in consideration of $60,000 in cash payments (only) and 1.75 million shares of Kapuskasing (current market capitalization: $2 million CAD). Apparently, the vendor sees more appreciation potential with the shares of Kapuskasing as the company has committed to a work program of a minimum of $100,000 within the first 24 months of TSX-V approval.