Mayfair Gold announced it has entered into a definitive agreement to acquire the Guibord, Marriott, and Holloway properties from Plato Gold Corp. for C$2.5 million in cash, significantly expanding its land position near the Fenn-Gib gold project in Ontario.
The acquisition increases Mayfair’s land holdings in the region by more than 65% and adds three exploration properties situated along the prolific Porcupine-Destor Fault Zone, a major geological structure within the Abitibi Greenstone Belt that has historically produced over 180 million ounces of gold.
The Guibord property, in which Mayfair will hold a 50% interest, lies adjacent to the Fenn-Gib project and provides critical access for potential onsite infrastructure. It also hosts Plato’s Silver Fox project and includes 16 mining claims and two mining leases covering 275 hectares. Historical drilling on the property has identified both high-grade and broad zones of gold mineralization.
The Marriott property, which Mayfair will acquire outright, consists of 142 mining claims spanning 2,728 hectares and is located approximately 55 kilometers east of Fenn-Gib. Previous drilling programs have intersected gold mineralization exceeding 1.0 g/t, indicating early-stage exploration potential within trucking distance of the planned operation.
The Holloway property, also being acquired at 100%, includes 10 mining claims over 156 hectares and is located near the historic Holt and Holloway mines. Historical drilling has revealed narrow zones of high-grade mineralization, with potential for deeper extensions of known mineralized systems.
Under the terms of the agreement, the C$2.5 million purchase price will be held in escrow and released in stages as each property transfer is completed. The transaction remains subject to customary closing conditions, including regulatory approvals.
Mayfair Gold is advancing the Fenn-Gib project toward production, with plans to begin construction in 2028 and achieve initial production by 2030. A recent pre-feasibility study outlines a projected initial capital cost of C$450 million, with a payback period of 2.7 years and estimated cumulative free cash flow of $896 million over the first six years, based on a gold price of $3,100 per ounce.
The company expects the acquisition to enhance project economics and provide additional exploration upside as it continues to de-risk and develop the Fenn-Gib asset.
KEY QUOTES
“We are excited to enter into this agreement with Plato to expand our land holdings near the Fenn-Gib Gold Project by more than 65%. All three properties are closely associated with the Porcupine-Destor Fault Zone, a significant regional structure within the Abitibi Greenstone belt that has produced more than 180 million ounces of gold historically. This transaction, as well as targets within our current land holdings provide Mayfair with new exploration leverage adjacent to and within hauling distance of the proposed Fenn-Gib mine. Furthermore, the Guibord property facilitates critical access for potential onsite infrastructure supporting our permitting process.”
Nick Campbell, CEO, Mayfair Gold Corp.
