Manhattan Corporation to acquire Hook Lake gold-polymetallic VMS project in Canada

Perth-headquartered Manhattan Corporation (ASX: MHC) is set to add a high-grade Canadian gold asset to its growing global multi-element portfolio, signing a binding agreement to acquire 100% of the Hook Lake project.

Located in eastern Nunavut, Hook Lake hosts the Turquetil Lake high-grade gold deposit and several additional gold and polymetallic volcanogenic massive sulphide prospects.

The project will sit alongside Manhattan’s Chebogue lithium project in Nova Scotia, the Tibooburra gold project in New South Wales and the Ponton uranium project in Western Australia.

Testing potential

Manhattan is planning to move quickly to verify historical work at Turquetil, which has remained largely dormant since 1988.

Drilling activities at that time defined a significant “foreign” estimate of 3.4 million tonnes at 2.38 grams per tonne gold for approximately 285,000 ounces of gold occurrence.

The target remains open in all directions and, with exceptional exploration upside, Manhattan is targeting the release of an inferred mineral resource over the next 24 months by initially completing data verification through drilling and other validation work.

Geophysical assessment

The company’s strategy to progress Hook Lake includes completing an assessment of geophysical techniques such as magnetics and induced polarisation/resistivity surveys to assist in target generation and drill hole planning for strike/depth extensions to known mineralisation.

It will also compile digital data, including establishing drilling and sampling databases and geographic information system datasets, to conduct target integration and generation from publicly sourced data.

The data will specifically target, but not limited to, banded iron formation-hosted gold.

Experienced team

Chief executive officer Kell Nielsen said the acquisition would bring with it a highly experienced and successful team that Manhattan expects will join its board and management team upon completion of the deal.

“This team will play a critical role in unlocking value by advancing the historically defined high-grade Turquetil Lake gold deposit through modern exploration techniques and by honouring the current agreement with Inuit landowners,” Mr Nielsen said.

“Upon the transfer of the project, there is a clear pathway for Manhattan to test the mineralised system further along strike and at depth at Turquetil Lake and deliver near-term maiden mineral resources.”

Nine separate projects

The Hook Lake project comprises nine separate prospects within three mineral claims and exploration agreements, covering a total of 423 square kilometres.

Hook Lake sits in the underexplored Archean Greenstone Belt, approximately 200km south-west of Agnico Eagle’s Meladine Mine.

The consideration for the proposed transaction comprises $185,000 in cash, along with the issue of 200,000,000 consideration shares and 150,000,000 consideration performance rights in aggregate to the vendor group.