Manhattan Corporation advances a high-resolution magnetic survey at its Hook Lake gold project in Nunavut while agreeing to sell its L3 Lithium Project in Nova Scotia for up to $1.34 million.
- High-resolution magnetic survey underway at Hook Lake targeting gold mineralisation
- Survey focuses on structurally hosted deposits near Jaws and banded iron formations at Omega
- Assay results from maiden field program expected imminently
- Sale agreement for 100% interest in L3 Lithium Project with up to $1.342 million in cash payments
- Hook Lake located in a highly prospective greenstone belt near major Canadian gold mines
Exploration Momentum Builds at Hook Lake
Manhattan Corporation Ltd (ASX – MHC) has announced significant progress in its exploration efforts at the Hook Lake Project in Nunavut, Canada. The company is currently conducting a high-resolution magnetic survey, covering key greenstone gold and volcanogenic massive sulphide targets. This survey, managed by Terraquest Ltd, aims to refine the understanding of mineralisation along strike from the historically noted Jaws deposit, which holds a non-JORC compliant estimate of approximately 285,000 ounces of gold.
The magnetic survey is designed to map structural continuity and identify new drill targets, particularly within the banded iron formation (BIF) at the Omega prospect. BIF-hosted gold deposits have been major contributors to gold production in Nunavut, yet this style of mineralisation remains underexplored at Hook Lake. The survey's high resolution will help delineate fold hinges and faulted zones critical for targeting mineralised veins and structural corridors.
Strategic Asset Sale in Nova Scotia
In parallel with its exploration activities, Manhattan has agreed to sell its 100% interest in the L3 Lithium Project, formerly known as the Chebogue Lithium Project, located in Nova Scotia. The sale involves transferring ownership of the Canadian subsidiary Continental Lithium Ltd to a private Canadian company for up to $1.342 million in cash payments. These payments include an upfront amount, post-closing payments, and milestone-based conditional payments tied to the definition of a significant lithium resource.
The transaction is expected to close by late November 2025, subject to customary regulatory and third-party approvals. This divestment allows Manhattan to focus resources on its core gold exploration activities in Nunavut, where gold and silver prices remain robust.
Context and Outlook
The Hook Lake Project spans 580 square kilometres within the Rankin-Ennadai greenstone belt, a geological setting known for hosting significant gold deposits such as Agnico Eagle’s Meliadine Mine and the developing Back River Gold District. Manhattan’s exploration strategy leverages modern geophysical techniques to unlock the potential of structurally hosted and BIF-hosted gold mineralisation, which could significantly enhance the project’s value.
While the historical resource estimate at Jaws is not compliant with current reporting standards, it provides a compelling exploration target. The imminent assay results from the maiden field program will be closely watched by investors and analysts for indications of mineralisation continuity and grade.
Manhattan’s Technical Manager, Eric Sondergaard, highlighted the timing advantage given current precious metals prices, underscoring the company’s commitment to advancing exploration in this underexplored but highly prospective region.
Bottom Line?
As Manhattan sharpens its focus on Nunavut’s gold potential, the market awaits assay results and the finalisation of its lithium asset sale.
Questions in the middle?
- Will the upcoming assay results confirm significant gold grades to justify further drilling at Hook Lake?
- How will the sale of the L3 Lithium Project impact Manhattan’s financial flexibility and exploration budget?
- Can the high-resolution magnetic survey successfully delineate new drill targets within the banded iron formation?