The Lord Nelson claims lie immediately north of Teuton’s Del Norte-Midas property. it is believed that the same prospective horizons which are related to most of the mineralization on the Del Norte property also strike north into the claims.
In 2010, the claims were optioned to Geofine Explorations which subsequently assigned the option to Frontline Gold Corporation, a TSX-V listed company. Frontline Gold also has an option on Geofine’s Poly property, adjoining north of the Lord Nelson claim. Work by Geofine on the Poly property in 2010 disclosed a large gossan close to the border with the Lord Nelson. The Poly property has several geochemical targets.
Frontline can earn a 100% interest in the Lord Nelson claims by paying $210,000 (or $185,000 and a share issuance with a cash value of $25,000) over the five year term of the option. It must also perform $1,200,000 of exploration work over this period. Teuton retains a net smelter royalty of 2%, half of which can be purchased for $1,000,000. An advance royalty of $50,000 per year, indexed to inflation, is also payable to Teuton beginning in 2016.
Recent Work on Lord Nelson Property
One of the most promising zones discovered to date on the Lord Nelson property is the LNX, the footwall rocks of which contain rhyolite stratigraphy. Stream sediment, soil and rock samples were taken in 2012 from the vicinity of the LNX zone outlining an auriferous geological environment with a strike length of over 500m and featuring a multi-element signature (Au-Ag-As-Sb +/- Cd, Cu, Pb, Zn). The LNX zone is also associated with an AeroTEM airborne anomaly that has a greater than 2km strike length on the Lord Nelson property and remains untested by diamond drilling. The newly discovered area lies to the north and along projected strike of the extensive gold and silver-bearing LG vein system hosted by the Del Norte property, owned by Teuton and Sabina Silver.
A 2013 follow-up drill program totaling 1200m was recommended to test the LNX zone, however this work has now been deferred to 2014 due to unfavourable financial markets. .