NEDLANDS: Reward Minerals Ltd. (ASX: RWD) announced Wednesday it has signed a binding letter of intent to acquire the Mountain Pond Gold Project in Newfoundland, Canada, a property featuring historic surface samples grading as high as 23.77 grams per tonne of gold and 7.48% copper.
The project, located approximately 7 kilometers from the town of Springdale, centers on the Jackpot Prospect, where historic trenching and rock chip sampling have identified an outcropping quartz-sulphide vein within a mineralized shear zone up to 8 meters wide.
The company said the mineralization is linked to the Sullivan Pond Fault, a regional structure that extends for more than 5 kilometers within the project area and remains largely untested by drilling.
“The Company is very pleased to have secured a gold/copper project featuring a high-priority, walk-up drill target,” CEO Lorry Hughes said in a statement. “It is remarkable that the project has not previously been drill tested for gold or base metals, despite the presence of high-grade outcrop samples.”
Under the terms of the agreement with vendor Christopher Pilgrim, Reward will pay CA$125,000 and issue 850,000 fully paid ordinary shares over three years. Pilgrim will retain a 1% net smelter return royalty, which Reward can purchase for CA$1 million at any time. An initial CA$20,000 payment has already been made.
The property consists of 32 contiguous claims covering approximately 8 square kilometers. While the Jackpot Prospect represents the most advanced target, the company noted that multiple subparallel gold-in-soil and till anomalies remain completely untested.
The project area saw limited exploration between 2010 and 2011 by small companies when metal prices were lower, Reward said. More recent work by individual prospectors has helped refine targets.
Reward said it has begun compiling historic geoscientific data and planning a confirmation sampling program. The company aims to generate a priority list of targets for drilling during the 2026 field season, which begins in May.
The Mountain Pond Project is located about 112 kilometers from Reward’s existing Copper Lance Project in Newfoundland.