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Highlights
- Madison Metals secures the Howells Lake Antimony Gold Project in Ontario, Canada.
- The project covers 13,990.90 hectares and 697 claims in a highly prospective area.
- Antimony prices have tripled in the past year, boosting the project's value.
Madison Metals Inc. (CSE:GREN) has significantly expanded its footprint in the critical minerals sector with the announcement of a major acquisition. The company has entered into binding letters of intent (LOIs) with three separate entities to acquire 100% interest in the Howells Lake Antimony Gold Project. Located in the Thunder Bay Mining Division of Ontario, Canada, the Howells Lake Project encompasses 13,990.90 hectares and spans 697 claims, positioning Madison Metals as a key player in one of Canada's most promising undeveloped antimony deposits.
The Howells Lake Project is particularly notable for its historical significance and its strategic location in the Hemlo Gold Camp, a well-known area for mineral exploration. Antimony, a critical mineral whose price has tripled in the past year, is currently in high demand due to its vital role in numerous industrial applications, particularly in energy storage and electronics. Madison's acquisition provides it with one of the few remaining significant antimony resources in Canada, which is expected to play a key role in the company's future growth.
The project was first identified in the 1940s, when high-grade antimony mineralization was reported in surface boulders. The discovery was followed by drilling in the mid-1970s, which further delineated the mineralization at depth. A non-NI 43-101 compliant historic resource estimate reported by John Scott, Ontario’s Resident Geologist, suggested 1.7 million tons at 1.70% antimony, which is roughly equivalent to 51 million pounds of contained antimony. The mineralization is located from the surface to about 150 meters depth and remains open to both lateral and vertical expansion.
In addition to antimony, gold mineralization has been reported at the project, with values reaching up to 2.3 ounces per ton, though the average gold content is not available for the historic antimony resource tonnage. Over CDN$2 million was spent on early exploration work during the 1970s-1980s, primarily by one of the project’s original stakeholders. However, no significant drilling or other comprehensive exploration has been carried out in the past 40 years, making this acquisition an exciting opportunity for Madison to reinvigorate the exploration work.
The Howells Lake Project covers an extensive 20 km stretch of favorable geology, and previous drill holes have encountered stibnite (antimony mineral) over 5,000 meters along trend. There is considerable potential for further exploration and expansion of the mineralization. Madison will pay one vendor 50,000 common shares for the 100% interest in the project and grant the vendor a 2% net smelter return (NSR). Madison also holds the option to repurchase 1% of the NSR for CDN$1 million.
