On 13th October 2016, Lionsgold (previously Kolar Gold) announced that it had entered into a Memorandum of Understanding (“MOU”) to establish a JV to develop existing gold exploration projects in Finland, thereby securing gold assets in a second jurisdiction, to be developed concurrently to India interests.

Lionsgold’s commitment is to inject €500,000 in cash (of which €150,000 has been paid) and €150,000 in shares to hold 28.7%. Option for Kolar to earn-in up to 50% by providing a further €1m to be expended on a drilling and bulk sampling program targeted to produce 100kg of gold in Spring 2017.


Finland JV company will hold ve exploration licences and two pending licences covering an area of 23.81km2. The Project area is located approximately 600 km north of Helsinki. Mineralisation is hosted by Archaean greenstone metasediments and meta- volcanics, with the licences located on the southern part of the Suomussalmi greenstone belt. Project includes the Kuikka gold deposit. Geological Survey of Finland (GTK) 52 diamond drill holes, returned 17 positive intersections.

Highlights:


  • 16.2m @ 18.97g/t Au from 15m in Hole R361;

  • 11.8m @ 2.8g/t from 36.4m in Hole R362;

  • 7.7m @ 5.3g/t Au from 4m in Hole R363;

  • 8.0m at 2.1g/t Au from 62.9m in Hole R367; and
  • 7.4m @ 4.0g/t Au from 36.6m in Hole R372.

In 2016, MENF conducted in ll RAB drilling (19 holes) at Kuikka confirming continuity of high grade gold mineralisation.

Highlights:


  • 6.0m @ 15.58g/t Au from 12.5m in hole KU002;

  • 6.0m @ 18.10g/t Au from 17.00m, 

  • 13.0m @ 7.58g/t Au from 26.00m in hole KU005;

  • 6.0m @ 26.95g/t Au from 7.00m in hole KU008; and
  • 11.0m @ 12.15g/t Au from 34.5m in hole KU010.