Canadian Gold has entered into an option agreement with Hudbay Minerals to acquire full ownership of the Tartan West property, located adjacent to its Tartan mine in Flin Flon, Manitoba, Canada. This agreement supports Canadian Gold’s plans to restart the Tartan mine by potentially adding high-grade gold resources.

Canadian Gold plans to initiate exploration at Tartan West at the beginning of the 2025 field season.

Under the agreement, Canadian Gold must fulfill specific cash, share, and work commitments over five years to secure 100% ownership. The initial payment includes 185,185 shares at the start of the earn-in period, with no cash or work requirements. By the first anniversary, the company will issue 555,555 shares and complete a C$100,000 ($71,545.50) fieldwork program. On the second anniversary, 1.11 million shares and a C$250,000 advanced fieldwork program are required. The third anniversary involves a C$150,000 cash payment, 1.29 million shares, and an C$800,000 initial drilling program. For the fourth anniversary, terms include a C$325,000 cash payment, 3.14 million shares, and a C$1.5 million secondary drilling program. By the fifth anniversary, a C$350,000 cash payment, 3.7 million shares, and a C$1.7 million third drilling program are stipulated. Upon completion, Hudbay will retain a 2.5% net smelter return, with some share payments potentially convertible to cash, pending TSX Venture Exchange approval.

Michael Swistun, Canadian Gold’s President and CEO, stated: “We believe the addition of this property would significantly increase the scope and scale of exploration opportunities for the company.” He added: “In time, we believe that additional high-grade resources that may be present on this property could deliver significant operational synergies that will bolster the already compelling economics for the restart of the Tartan mine.”

The agreement enables exploration of the Tartan Shear Zone, potentially doubling its size from 8km to 16km. Historic drilling has shown high-grade gold results, including 44.2 grams per tonne over 2.5 meters and 595.2 grams per tonne over 0.2 meters. A single processing facility at the Tartan mine could serve multiple ore sources, potentially lowering capital costs per ounce. Future access to Tartan West mineralization may utilize existing and planned underground infrastructure.

Canadian Gold plans to begin exploration in early 2025, focusing on detailed mapping, prospecting, and sampling to verify historic high-grade surface showings.

historic results showing high-grade gold. Exploration starts in early 2025 with mapping and sampling.