Rocky Shore Gold Ltd. has announced an option agreement for the Handcamp Property, a purchase agreement for the Springdale Property and the staking of additional claims in Newfoundland and Labrador. The properties and claims form the company’s Rocky Pond VMS Project within the Roberts Arm VMS belt, although both transactions remain subject to stated conditions.
#Rocky Pond project and Roberts Arm belt
The Rocky Pond land position covers part of a 40-kilometre trend in the Roberts Arm VMS Belt, northeast of the former producing Buchans VMS mine. Rocky Shore said the belt contains gold-rich polymetallic mineralisation and that the project will complement its Gold Anchor Project in central Newfoundland.
The Handcamp Zone is described as hosting gold-rich volcanogenic massive sulphide mineralisation containing zinc, lead, copper and silver. The zone extends for 1,200 metres across shallow depths and remains open along strike and at depth, according to the company.
#Historical Handcamp drilling
Historical drilling reported by Rocky Shore included 1.96 g/t AuEq over 25.05 m from 13.05 m in hole H22-04, including 3.50 g/t AuEq over 11.60 m. Hole H22-03 returned 2.20 g/t AuEq over 21.95 m from 10.20 m, including 3.98 g/t AuEq over 11.35 m.
Other reported intervals included 2.89 g/t AuEq over 11.85 m from 12.10 m in H22-01, including 4.41 g/t AuEq over 7.30 m; 2.61 g/t AuEq over 12.25 m from 68.45 m and 2.92 g/t AuEq over 5.55 m in H22-10; 1.17 g/t AuEq over 26.25 m from 19.25 m in H22-02, including 2.08 g/t AuEq over 11.05 m; and 2.38 g/t AuEq over 8.55 m from 27.60 m in H22-14, including 4.58 g/t AuEq over 4.10 m.
These are drill-hole lengths, and the true thickness of the mineralisation is not currently known. Holes H22-15 and H22-16 tested additional targets but produced no significant values.
#Loon Pond surface results
At the Loon Pond showing, two rock samples reported grades of 8.35% Zn, 2.5% Pb, 0.75% Cu, 131.6 g/t Ag and 17.2 g/t Au, and 9.15% Zn, 0.13% Pb, 0.13% Cu, 85.2 g/t Ag and 0.9 g/t Au.
Loon Pond is located 15 kilometres northeast of, and on trend with, the Handcamp Zone. Rocky Shore cautioned that surface samples may not represent the true grade of the surrounding potential VMS system and should not be relied upon for that purpose.
#Terms of the Handcamp option
Through a wholly owned subsidiary, Rocky Shore has received an exclusive option to acquire a one hundred percent (100%) undivided interest in the Handcamp Property. The consideration consists of cash payments, Rocky Shore common shares and exploration expenditures.
The initial cash payment and share issuance under the Option remain subject to customary closing conditions. The one hundred percent (100%) interest would be acquired only after the specified cash payments, share issuances and exploration expenditures have been completed.
If the Option is exercised, the optionor will retain a 2.0% net smelter return royalty over the Handcamp Property and certain additional claims within the project area. Rocky Shore’s subsidiary will have a right of first refusal over any proposed sale or transfer of that 2.0% NSR.
Following exercise, the optionor could also receive 2,000,000 common shares within ten business days after receipt of a NI 43-101 technical report reporting a mineral resource estimate of not less than 500,000 and not more than 1,000,000 gold equivalent ounces. A report disclosing a mineral resource estimate of greater than 1,000,000 gold equivalent ounces would trigger 3,000,000 common shares within ten business days. Further terms of the option apply.
#Springdale purchase agreement
Under the Springdale Purchase Agreement, Rocky Shore’s wholly owned subsidiary agreed to acquire a one hundred percent (100%) interest in the Springdale Property for $30,000 cash and 285,000 common shares. The vendors will retain an aggregate 2.5% NSR.
The subsidiary may repurchase 60% of that royalty, representing a 1.5% NSR, for aggregate cash payments of $1,500,000. It will also hold a Right of First Refusal over the remaining 1% NSR.
Completion of the Purchase Agreement is subject to customary closing conditions for a transaction of this nature. Shares issued under the Purchase Agreement and the Option Agreement will be subject to appropriate exemptions, including the prospectus exemption set out in Section 2.13 of National Instrument 45-106 - Prospectus and Registration Exemptions, along with other applicable securities laws and regulations.
#Exploration plans and reporting limitations
Ken Lapierre, Rocky Shore’s President and CEO, said the company intends to conduct an airborne VTEM survey over the project and combine it with previous work to assess the Handcamp Zone and identify additional targets along the 40-kilometre trend. These plans are subject to the risks and uncertainties associated with mineral exploration.
The company said the AuEq grades are illustrative calculations combining gold, silver, zinc, lead and copper into a single metal grade. The calculations used September 3, 2026, spot prices of USD$4475/oz gold, USD$66.87/oz silver, USD$1.84/pound zinc, USD$0.85/pound lead and USD$6.52/pound copper. Assumed metallurgical recoveries were 95% for gold and silver, 85% for copper and 80% for zinc and lead. Rocky Shore has not verified the accuracy of the values in Table 1.
Rocky Shore identified risks relating to exploration, permitting timelines, environmental matters, technical difficulties, future commodity prices, regulatory changes, political and economic developments, capital expenditures, title disputes, additional financing, competition, global economic and financial market conditions and changes to project parameters. The company stated that actual results may differ materially from its forward-looking information and that there can be no assurance that the information or the assumptions supporting it will prove accurate.
#Key Takeaways
- Rocky Shore has announced a Handcamp Property option, a Springdale Property purchase agreement and additional claims in Newfoundland and Labrador.
- The Rocky Pond Project lies within the Roberts Arm VMS belt and includes the Handcamp Zone, which the company describes as a gold-rich VMS zone extending for 1,200 metres.
- The Handcamp option involves cash, shares and exploration expenditures, with the initial cash payment and share issuance subject to customary closing conditions.
- The Springdale agreement provides for $30,000 cash and 285,000 common shares for a one hundred percent (100%) interest, while completion remains subject to customary closing conditions.
- Reported drill intervals are down-the-hole lengths, true thickness is not known, and Rocky Shore has not verified the accuracy of the Table 1 values.
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