Vancouver-based West Point Resources (TSX:V.WPO, Stock Forum) has purchased a 100% interest in a Monster Lake South property in Quebec, a mile south of Tomagold's (TSX:V.LOT, Stock Forum) gold discovery property that Iamgold (TSX:T.IMG, Stock Forum) is heavily invested in and currently drilling.
West Point shares rocketed on the news, lifting 116.6% to $0.065.
The property, southwest of Chibougamau, “consists of 6 claims totalling 112 hectares and contains historical drilling by Homestake Mining (Canada) Ltd. (2 holes drilled in 1991) and Westminer Canada Ltd. (14 holes drilled in 1992) with anomalous gold-bearing intervals including 5.39 g/t Au over 8.0 meters (which includes 19.25 g/t Au over 1.5 meters),” according to the company.
“The Monster Lake area has seen significant exploration activity since the winter of 2012 when TomaGold drilled 2,420 meters on the Annie zone which resulted in a major discovery of 237.6 g/t of gold over 5.7 meters. This discovery hole along with additional drilling has attracted Iamgold Corp. to this highly prospective area that is close to roads and infrastructure. The area also hosts the Philibert (Soquem), Meston Lake, Joe Mann and Chevrier Zone deposits and Vanstar Mining Resources' Nelligan project which may host a significant new discovery less than 10 kilometres south of the Monster Lake South gold property.”
West Point has a sub-$1m market cap with 14.3 million shares outstanding.
West Point purchased a 100% interest in the property from Junita Tedy Ashito for $7,800, as well as 3 million common shares of the company and a 2% NSR.
Terms are subject to the approval of the TSX Venture Exchange.
In other news, the company has decided not to proceed with work on its Ruby Range property option, and has returned the property to Rockhaven Resources Ltd.
FULL DISCLOSURE: Tomagold is a Stockhouse Publishing client.