Great Atlantic Resources Corp. (TSX: V.GR, Stock Forum) said it has signed a Letter of Intent with Playfair Mining Ltd. (TSX: V.PLY, Stock Forum) to acquire up to a 75% interest in the Grey River Tungsten property.
According to the press release, Grey River is a potentially viable project that will return a positive net discounted cash flow. The property is located adjacent to the fishing village of Grey River on the south coast of Newfoundland.
"We have reviewed the PEA which is based on only two of over 300 veins and veinlets that ASARCO mapped over 50 years ago,” said Chris Anderson, President. “The remaining veins have seen little significant work to date and provide additional excellent exploration opportunities."
The Grey River tungsten veins are typical fluorite-rich wolframite-quartz greisen vein deposits. Most of the tungsten mineralization is wolframite with a number of small scheelite occurrences known.
Under the terms of the letter of intent, Great Atlantic, as operator, can acquire a 75% undivided interest by making cash option payments of $500,000 over the next six months upon signing a definitive option agreement.
Great Atlantic is a Canadian exploration company focused on the discovery and development of mineral deposits in Atlantic Canada which is a sovereign risk free domain.
On Friday, Great Atlantic’s stock was up 9% and was trading at $0.12 a share. The company has a market cap of $4.9 million, based on 39.9 million shares outstanding. The 52-week high and low was $0.155 and $0.075 respectively.