Copper Fox plans magnetic survey for Sombrero Butte
Copper Fox Metals Inc. and its wholly owned subsidiary, Desert Fox Copper Inc., have provided an update of compilation work and exploration plans for its 100-per-cent-owned Sombrero Butte porphyry copper project located approximately 70 kilometres northeast of Tucson, Ariz.Read More
The Sombrero Butte property is located approximately 3 kms south of the Copper Creek porphyry copper deposit. Copper Creek is in the NNW structural trend that hosts the Ray, San Manuel and Bisbee porphyry copper deposits in Arizona. This deposit is hosted in the Copper Creek granodiorite and is characterized by an abundance of mineralized breccia pipes exposed in outcrop overlying the porphyry deposit. These breccia pipes are a significant geological feature of this and other porphyry copper deposits and mines throughout Arizona.
- A 150-line km drone-based magnetometer survey is planned to outline the magnetic signatures over two large porphyry copper targets hosted in the Laramide age Copper Creek granodiorite.
- The magnetic survey should further define and constrain the distribution of alteration patterns and structures within the two targets.
- The results from diamond drill hole (‘DDH’) SB-03, completed in 2008, suggest proximity to a mineralized chargeability body within Target #1, the magnetic survey could better define this target.
- The porphyry targets exhibit swarms of mineralized breccia pipes, alteration patterns, mineralized structures, and chargeability signatures typical of a porphyry copper system.
- The geochemical mapping, pathfinder elements and alteration indicator minerals also support the presence of one or more cupolas of buried porphyry systems.
Elmer B. Stewart, President and CEO of Copper Fox, stated, “The magnetic survey is expected to better define the geometry, structural control and alteration patterns associated with both targets. The work to date continues to update the geological model, identify significant structural control, and constrains the distribution of the mineralization and alteration patterns in both targets. The objective of the magnetic survey is to confirm the current interpretation and based on size and location, Target #2 would be the priority target to establish drill locations for the next phase of exploration.”
Rationale for Magnetic SurveyExploration Model:
The Sombrero Butte project covers the southern portion of the Copper Creek granodiorite intrusive. Historical surface exploration and diamond drilling (2006 to 2008) combined with the chargeability/resistivity survey completed by Copper Fox in 2015 has identified two, large Laramide age porphyry copper exploration targets based on the Copper Creek deposit exploration model.
Target #1 covers the area of historical mining activities and is characterized by a swarm of mineralized breccia pipes in potassic and phyllic altered Copper Creek granodiorite overlying a 500 by 500 meter (‘m’) chargeability body at a depth of 400m below surface. Historical deep drilling in this area focussed on the mineralized breccia pipes.
The deepest zone of porphyry style mineralization within Target #1 was encountered in DDH SB-03 collared approximately 200m south of the identified chargeability body. This drill hole intersected a mineralized breccia pipe from 466 to 492m that returned a weighted average grade of 1.19% copper, 0.013% molybdenum, 0.08g/t gold and 4.83g/t silver.
The Copper Creek granodiorite below the mineralized breccia pipe from 500 to 610m contains stockwork style veins of quartz + K-feldspar + chalcopyrite and from 610 to 645m, the quartz + K-feldspar veins continue as thin, hairline veinlets containing minor chalcopyrite. The mineralized veins and veinlets in the Copper Creek granodiorite are associated with pervasive K-feldspar flooding and locally, with selvages of advanced argillic and phyllic alteration. The data suggests that DDH SB-03 intersected the outer edge of a mineralized porphyry system.
Target #2 is a near surface 2,000m long chargeability body characterized by copper-molybdenum mineralization in steep and shallow dipping veins and veinlets, mineralized breccia pipes and extensive goethite veining (after pyrite) in Copper Creek granodiorite and Glory Hole Volcanics displaying potassic, phyllic and advanced argillic alteration. The distribution of the mineralization, alteration and geometry of the chargeability body suggest a significant structural component present in Target #2.
The geometry and distribution of the chargeability component of the chargeability/resistivity signature suggests the “potassic core” (low chargeability less than 10 mrad/high resistivity) of a porphyry system transitioning outward to a broad zone of moderate chargeability (10-30mrad) “phyllic alteration zone” and then to a wide zone of high chargeability (greater than 30mrad) interpreted to be a “pyritic shell” commonly observed in porphyry copper systems. The compositional variations of the late stage intrusive dikes within this target is interpreted to represent the cupola of the porphyry system.
Copper Fox has submitted their geological field operations plan (“GFOP”) with the Arizona State Land Department to conduct the magnetometer survey. The survey is expected to commence in September subject to receipt of approval of the GFOP.
The drone/magnetic system consists of a GEM Systems GSMP-35UC UAV Potassium magnetometer onboard a battery operated DJI Matrice 600 Pro Hexacopter. GPS positions and total field intensity data are recorded continuously at 10 Hz which provides a sampling interval of approximately 0.5-meter data points along flight lines. Flight altitude will be set at 85m above ground level. A second magnetometer will record continuously at a fixed ground location to allow for diurnal corrections
Elmer B. Stewart, MSc. P. Geol., President and CEO of Copper Fox, is the Company’s non-independent, nominated Qualified Person pursuant to National Instrument 43-101, Standards for Disclosure for Mineral Projects, and has reviewed and approves the scientific and technical information disclosed in this news release.
Dolly Varden increases financing to $10-million
Dolly Varden Silver Corp., due to strong investor demand, has agreed with Mackie Research Capital Corp., co-lead agent and sole bookrunner, along with Eventus Capital Corp., co-lead agent, in connection with the previously announced best efforts private placement of units of the company at a price of 71 cents per unit, to increase the size of the offering for gross proceeds of up to $10-million. Continuing with his support of Dolly Varden, Eric Sprott is expected to subscribe into the offering to maintain his 19.9-per-cent interest.Read More
Each unit will comprise one common share of the company and one-half of one common sare purchase warrant. Each warrant shall be exercisable to acquire one common share at a price of $1.10 per warrant share for a period of 24 months from the closing of the offering. Provided that if, at any time prior to the expiry date of the warrants, the closing price of the common shares on the TSX Venture Exchange, or other principal exchange on which the common shares are listed, is greater than $1.75 for 10 consecutive trading days, the company may, at the company’s discretion, and at any time going forward, within 15 days of the occurrence of such event, deliver a notice to the holders of warrants accelerating the expiry date of the warrants to the date that is 30 days following the date of such notice. Any unexercised warrants shall automatically expire at the end of the accelerated exercise period.
The company intends to use the net proceeds from the offering for further exploration, mineral resource expansion and drilling at the Dolly Varden silver property in northwestern British Columbia, Canada, working capital, and general corporate purposes.
The securities to be issued under the offering will be offered by way of private placement in each of the provinces of Canada, other than Quebec, and such other jurisdictions as may be determined by the company, in each case, pursuant to applicable exemptions from the prospectus requirements under applicable securities laws.
The offering is scheduled to close on or about the week of Aug. 17, 2020, or such date as agreed upon between the company and the agents, and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the exchange. The units to be issued under the offering will have a hold period of four months and one day from closing.
Pursuant to the ancillary rights agreement between Hecla Canada Ltd. and the company dated Sept. 4, 2012, Hecla will be entitled to acquire units at a price of 71 cents per unit to maintain its pro rata equity interest in the company. If Hecla exercises its pro rata rights under the ancillary rights agreement, any units issued to Hecla will be in addition to those issued as part of the offering.
In connection with the offering, the agents will receive an aggregate cash fee equal to 6 per cent of the gross proceeds from the offering, including in respect of any exercise of the agent’s option. In addition, the company will grant the agents, on date of closing, non-transferable compensation warrants equal to 6 per cent of the total number of units sold under the offering (including in respect of any exercise of the agent’s option). Each compensation warrant will entitle the holder thereof to purchase one common share at an exercise price equal to the offering price for a period of 24 months following the closing.
Tristar Gold receives $914,614 from warrant exercises
Tristar Gold Inc. has received proceeds of $914,614 from the exercise of 2,613,182 common share purchase warrants (including finders’ warrants). The warrants were issued in connection with a private placement financing (see press release dated Jan. 25, 2018) and had an exercise price of 35 cents and an expiry date of July 24, 2020.Read More
“This money coming in from the warrant exercise, on top of our recent financing, means that Tristar is in a great position to aggressively explore at Castelo de Sonhos, as well as complete our prefeasibility study and planned permitting activities,” said Nick Appleyard, Tristar’s president and chief executive officer.
Freeman closes $10.35-million bought deal offering
Freeman Gold Corp. has closed the previously announced bought deal public offering of common shares of the company for aggregate gross proceeds of approximately $10.35-million. The Company issued 20,690,000 common shares, including common shares issued pursuant to the exercise of the over-allotment option.Read More
The Offering was conducted by Canaccord Genuity Corp. and Stifel GMP, as co-lead underwriters, and PI Financial Corp. and INFOR Financial Inc. (the “Underwriters”). The Company issued to the Underwriters broker warrants to acquire an aggregate of 1,418,650 common shares of the Company, exercisable at any time prior to July 28, 2022 at the exercise price of $0.50 per common share.
Freeman intends to use the proceeds of the Offering for exploration work on the Company’s Lemhi gold project in Idaho, USA and its Comstock property in British Columbia, Canada with additional proceeds utilized for general and administrative expenses and working capital.
Freeman’s Chief Executive Officer and Director, Will Randall, commented, “We thank existing shareholders, new investors and the syndicate of Underwriters for their support via this oversubscribed bought deal financing. The strong demand is a testament to the quality and potential of the Lemhi gold project located in Idaho, USA. These funds will allow Freeman to complete a work program as the Company works toward a maiden National Instrument 43-101 compliant gold mineral resource estimate, focusing on near surface, oxide material defined by previous operators. We look forward to keeping you updated as we progress.”
The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This news release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.
Highgold Mining closes $13.8-million bought deal
Highgold Mining Inc. has closed its previously announced upsized bought deal offering of 7,976,975 common shares at a price of $1.73 per offered share for aggregate gross proceeds of $13,800,166.75, which included the full exercise of the overallotment option granted to the underwriters (as defined herein).Read More
In connection with the Offering, the Company announces that it has issued an additional 446,500 common shares of the Company (the “Participation Shares”) to an existing strategic shareholder of the Company pursuant to the shareholder’s election to exercise its participation right under an investor rights agreement (see news release dated July 13, 2020). The Participation Shares were issued at a price of $1.73 per Participation Share for gross proceeds of $772,445.
“With the closing of the financing, Highgold has $23 million in working capital, placing us in a strong position to materially advance our flagship Johnson Tract Gold Project in Alaska,” commented president and chief executive officer Darwin Green. “We are very pleased to welcome several new, large institutional shareholders to Highgold’s registry. We are also grateful for the continued support of several existing major shareholders that participated in the financing. Highgold now looks forward to putting these funds to work.”
The Offering was made through a syndicate of underwriters led by Cormark Securities Inc., including Canaccord Genuity Corp., Stifel Nicolaus Canada Inc., Haywood Securities Inc. and Sprott Capital Partners LP (collectively, the “Underwriters”). The Company paid to the Underwriters a cash commission equal to 5% of the gross proceeds realized by the Company from the Offering.
The Company intends to use the net proceeds from the Offering and the Participation Right Exercise for mineral exploration and general corporate purposes, including expanding the scope and the scale of its recently commenced 2020 Johnson Tract drill program in Alaska, USA (see news release dated July 22, 2020). The Offered Shares and the Participation Shares are subject to a four-month and one day hold period in Canada.
Galway Metals to buy back 1% NSR on Clarence Stream
Galway Metals Inc. has entered into an agreement dated July 27, 2020, with an arm’s-length third party royalty holder to buy back a 1-per-cent net smelter return royalty covering certain mineral claims at the company’s Clarence Stream property in southwestern New Brunswick. This is a separate royalty and is in addition to the royalty purchase announced on July 21, 2020. The mineral claims subject to the Royalty cover the Jubilee Zone, parts of the Richard Zone, the recently reported new discovery of 186.5 g/t Au over 0.6m located 950m SW of the Jubilee Zone and other prospective properties.Read More
The original agreement allowed only for buyback of one-half percent (0.5%) of the royalty for $500,000. Galway was able to negotiate with the royalty holder to purchase the royalty in its entirety. Under terms of the Agreement, Galway Metals will pay a total purchase price of $580,000 comprised of a cash payment of $100,000 and 400,000 common shares in the capital of the Company at a deemed price of $480,000 ($1.20 per Share).
The transaction is subject to receipt of all necessary approvals, including the approval of the TSX Venture Exchange.
Robert Hinchcliffe, president, chief executive officer and director, commented: “We are pleased to complete a second royalty acquisition at the Clarence Stream Project, and, just as with our first royalty buyback, will contribute meaningfully to further unlocking value of the Clarence Stream land package beyond what we have already accomplished. The royalty holder’s willingness to receive the majority of payment as shares in Galway demonstrates belief in the property and in the Company’s future.”
Review by qualified person, quality control and reports
Michael Sutton, PGeo, director and vice-president of exploration for Galway Metals, is the Qualified Person who supervised the preparation of the scientific and technical disclosure in this news release on behalf of Galway Metals Inc. All core, chip/boulder samples, and soil samples are assayed by Activation Laboratories, 41 Bittern Street, Ancaster, Ontario, Canada, who have ISO/IEC 17025 accreditation. All core is under watch from the drill site to the core processing facility. All samples are assayed for gold by Fire Assay, with gravimetric finish, and other elements assayed using ICP. The Company’s QA/QC program includes the regular insertion of blanks and standards into the sample shipments, as well as instructions for duplication. Standards, blanks and duplicates are inserted at one per 20 samples. Approximately five percent (5%) of the pulps and rejects are sent for check assaying at a second lab with the results averaged and intersections updated when received. Core recovery in the mineralized zones has averaged 99%.
Southern Silver Exploration offering fully subscribed
Southern Silver Exploration Corp.’s previously announced brokered offering of subscription receipts to be issued at the price of 20 cents per subscription receipt has been fully subscribed for aggregate gross proceeds of $10-million and it is anticipated to close on or about July 31, 2020.Read More
In conjunction with a previously announced Transaction (as defined below) to acquire an additional 60% indirect working interest (for a 100% indirect ownership) in the Company’s flagship Cerro Las Minitas project and the previously announced brokered offering of Subscription Receipts, the Company plans to now issue an additional 19,047,620 subscription receipts of the Company (the “Additional Subscription Receipts”) on a non-brokered private placement basis at the price of C$0.21 per Additional Subscription Receipt for gross proceeds of up to C$4,000,000 (the “Offering”). Each Additional Subscription Receipt shall be exchangeable, for no additional consideration, into one unit of the Company (each, a “Unit”) upon satisfaction of certain escrow release conditions (the “Escrow Release Conditions”). Each Unit will consist of one common share and one-half of one share purchase warrant, with each full warrant exercisable to purchase one additional common share at a price of C$0.28 during the first year, increasing to C$0.33 in year two and C$0.38 in year three following the closing date of the Offering (the “Closing Date”). The Additional Subscription Receipts will otherwise be identical to the Subscription Receipts to be issued under the brokered offering of Subscription Receipts.
The net proceeds raised under the Offering will be used to fund the cash payment for the Transaction and for general working capital purposes.
The common shares and warrants issuable upon satisfaction of the Escrow Release Conditions will be subject to certain resale restrictions, including a restricted (or “hold”) period of four months and one day following the Closing Date, under applicable Canadian securities legislation, and any securities issued to U.S. purchasers will be “restricted securities” as defined in Rule 144 of the U.S. Securities Act. Purchasers are advised to consult their own legal advisors in this regard.
The Offering is subject to certain conditions including, but not limited to, the receipt of all necessary approvals of the TSX Venture Exchange. Finders’ fees may be paid by Southern Silver in relation to this Offering.
The Company has entered into a definitive agreement with Electrum Global Holdings L.P. (“Electrum”) to acquire Electrum’s 60% ownership interest in Southern Silver Holdings Limited (“SSHL”) for current and future cash and share payments totaling US$15.0 million (the “Transaction”). SSHL is a holding company that wholly owns Minera Plata del Sur S.A. de C.V. (“MPS”). MPS holds title to the Cerro Las Minitas property in Durango State, Mexico. The Company shall use its commercially reasonable efforts to complete the Transaction. The conditions of the closing of the Transaction are as follows:
i. on the closing date of the Transaction, the payment by the Company to Electrum of US$5,000,000 in cash and the issue and delivery of US$2,000,000 (adjusted by a credit of C$1,350,000 paid on execution of the definitive agreement), in common shares of the Company;
ii. receipt of the approval of the Company’s shareholders; and
iii. receipt of all required approvals from the TSX Venture Exchange as well as all other relevant regulatory bodies.
The securities referred to in this news release have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons absent U.S. registration or an applicable exemption from the U.S. registration requirements. This news release does not constitute an offer for sale of securities for sale, nor a solicitation for offers to buy any securities.
Troilus pegs Troilus at 4.96 million oz AuEq indicated
Troilus Gold Corp. has provided an updated mineral resource estimate from its 100-per-cent-owned Troilus property located 170 kilometres by road northeast of Chibougamau, Que. The updated mineral resource estimate is summarized in the mineral resource estimate table. For full cut-off sensitivities and background information please visit the Troilus website.Read More
- The total estimated indicated mineral resource has increased to 4.96 million ounces gold equivalent (177 million tonnes with an average grade of 0.87 gram per tonne AuEq) and the total estimated inferred mineral resource has increased to 3.15 million ounces AuEq (116.7 million tonnes with an average grade of 0.84 g/t AuEq).
- The open-pit estimated mineral resources have increased by 601,000 ounces AuEq to 4.21 million ounces (164.2 million tonnes with an average grade of 0.8 g/t AuEq) in the indicated category and 1.49 million ounces AuEq in the inferred category to 2.27 million ounces (101.2 million tonnes with an average grade of 0.7 g/t AuEq), compared with the Dec. 20, 2019, mineral resource estimate.
- The newly discovered and recently drilled Southwest zone contributed 583,000 ounces AuEq to inferred mineral resources (22.6 million tonnes with an average grade of 0.8 g/t AuEq).
- Total estimated indicated mineral resources have increased by 142 per cent and inferred mineral resources have increased by 350 per cent since the mineral resource estimate (effective date of June 30, 2016) when the Troilus project was first acquired.
MINERAL RESOURCE ESTIMATE -- EFFECTIVE AS OF JULY 20, 2020 Tonnage AuEq Au Cu Ag Contained Contained Contained Contained Classification (Mt) (g/t) (g/t) (%) (g/t) AuEq (Moz) gold (Moz) copper (Mlb) silver(Moz) Indicated 177.3 0.87 0.75 0.08 1.17 4.96 4.30 322.60 6.66 Inferred 116.7 0.84 0.73 0.07 1.04 3.15 2.76 189.73 3.91
Notes for the mineral resource estimate:
- Mineral resources that are not mineral reserves do not have demonstrated economic viability.
- Summation errors may occur due to rounding.
- Open-pit mineral resources are reported within an optimized constraining shells.
- Open-pit cut-off grade is 0.3 g/t AuEq where the metal equivalents were calculated as follows:
- Z87 zone: AuEq equals Au grade plus 1.2566 times copper grade plus 0.0103 times Ag grade;
- J4/J5 zone: AuEq equals Au grade plus 1.2979 times Cu grade plus 0.0108 times Ag grade;
- SW zone: AuEq equals Au grade plus 1.2768 times Cu grade plus 0.0106 times Ag grade.
- Metal prices for the AuEq formulas are: $1,600 (U.S.) per ounce Au, $3.25 (U.S.0 per pound Cu, and $20 (U.S.) per ounce Ag, with an exchange rate of $1 (U.S.) to $1.30.
- Metal recoveries for the AuEq formulas are:
- Z87 zone: 83 per cent for Au recovery, 92 per cent for Cu recovery and 76 per cent for Ag recovery;
- J4/J5 zone: 82 per cent for Au recovery, 88 per cent for Cu recovery and 76 per cent for Ag recovery.
- SW zone: 82.5 per cent for Au recovery, 90 per cent for Cu recovery and 76 per cent for Ag recovery.
- The resource constraining shells were generated with:
- Metal prices: gold $1,600 (U.S.) per ounce, copper $3.25 (U.S.) per pound, silver $20 (U.S.) per ounce.
- Mining costs:
- J zone and 87 zone base cost: $1.71 per tonne moved;
- SW zone base cost: $1.66 per tonne moved;
- Incremental cost: three cents per tonne of waste moved, two cents per tonne of feed moved;
- Process and general and administrative costs: $8.44 per tonne processed;
- Wall slopes: varied between 49.5 to 60 degrees depending on pit area and slope sector
- Metal recoveries:
- Gold: 90 per cent all zones except in lower grade (Au 0.13 per cent) portions of SW zone equals 92 per cent;
- Silver: all zones 40 per cent.
- Underground cut-off grade is 0.9 AuEq at Z87 zone and J4/J5 zone.
This updated mineral resource estimate, prepared in accordance with Canadian Institute of Mining, Metallurgy and Petroleum (2014) definition standards incorporated by reference in National Instrument 43-101 Standards of Disclosure for Mineral Projects, is the result of over 8,500 metres of drilling between November, 2019, and February, 2020 (24 drill holes), in addition to 36,000 m (81 drill holes) of drilling completed by the company from February, 2019, to July, 2019, and 36,000 m (91 drill holes) of drilling completed in August, 2018. The mineral resource estimates for Z87 zone and J zones (J4 and J5) are based on a combined open-pit and underground mining scenario, while the mineral resource estimates for the Southwest zone (SWZ) is based on open-pit mining. The combined updated open-pit and underground mineral resource estimate is summarized in the open pit and underground estimated mineral resources table
OPEN PIT AND UNDERGROUND ESTIMATED MINERAL RESOURCES -- EFFECTIVE AS OF JULY 20, 2020 Tonnage AuEq Au Cu Ag Contained Contained Contained Contained Classification (Mt) (g/t) (g/t) (%) (g/t) AuEq (Moz) Au (Moz) Cu (Mlb) Ag (Moz) Total open pit and underground Indicated 177.3 0.87 0.75 0.08 1.17 4.96 4.30 322.60 6.66 Inferred 116.7 0.84 0.73 0.07 1.04 3.15 2.76 189.72 3.91 Total open pit Indicated 164.2 0.80 0.68 0.08 1.20 4.21 3.62 284.69 6.32 Inferred 101.2 0.70 0.60 0.07 1.12 2.27 1.95 151.01 3.65 Total open pit Z87 zone Indicated 84.6 0.92 0.79 0.09 1.39 2.50 2.15 169.54 3.77 Inferred 32.7 0.70 0.60 0.07 1.50 0.73 0.63 49.34 1.57 Total open pit J zone (J4 & J5) Indicated 79.6 0.67 0.57 0.07 1.00 1.71 1.47 115.16 2.55 Inferred 45.9 0.65 0.55 0.07 0.96 0.96 0.82 65.94 1.42 Total open pit Southwest zone Inferred 22.6 0.80 0.70 0.07 0.89 0.58 0.51 35.73 0.65 Total Underground Indicated 13.1 1.79 1.61 0.13 0.81 0.75 0.68 37.91 0.34 Inferred 15.5 1.77 1.62 0.11 0.52 0.88 0.81 38.72 0.26 Total Underground Z87 zone Indicated 13.1 1.79 1.61 0.13 0.81 0.75 0.68 37.90 0.34 Inferred 13.5 1.85 1.70 0.12 0.37 0.80 0.74 34.48 0.16 Total Underground J zone (J4 & J5) Indicated 0.01 1.07 1.03 0.03 0.47 0.00 0.00 0.00 0.00 Inferred 2.00 1.21 1.06 0.10 1.55 0.08 0.07 4.24 0.10
“The Troilus team is incredibly pleased with the results of the new resource. We have materially added to the estimated inferred and indicated resource in every zone while maintaining essentially the same grade. In addition, we have discovered and added a new impactful inferred mineral resource in the Southwest zone that we believe still has the ability to grow materially through further drilling. Troilus has shown scale, the ability for expansion and optionality from multiple resource centres,” said Justin Reid, chief executive officer of Troilus. “Since acquiring the Troilus project in 2017, the careful work and scientific analysis by our technical team has resulted in a 142-per-cent increase to the indicated mineral resource estimate and a 350-per-cent increase to the inferred mineral resource estimate, providing the foundation for a preliminary economic assessment for the project, which we are targeting for release towards the end of calendar Q3.”
“Troilus continues to expand,” commented Blake Hylands, senior vice-president of exploration. “We are very pleased to observe that, as the mineral resource estimate continues to grow, the grade remains consistent and the new Southwest zone is comparable to what we have observed at Z87 and the J zones. Looking ahead to a 20,000-metre drill program planned for later this year, we intend to continue drilling in the Southwest zone to further tap into this new area of mineralization as we believe there is still significant room for further growth and we will complete infill drilling around the main ore bodies at Z87 and J zones.”
The updated mineral resource estimate was completed by AGP Mining Consultants Inc. and has been reviewed internally by the company. The full technical report in respect of the updated mineral resource estimate will be available on SEDAR under the company’s issuer profile within 45 calendar days.
Quality assurance and quality control
During the Southwest zone drill program in 2019-2020, one m assay samples were taken from NQ core and sawed in half. One-half was sent for assaying at ALS Canada Ltd., a certified commercial laboratory, and the other half was retained for results, cross checks and future reference. A strict QA/QC program was applied to all samples, which included insertion of one certified mineralized standard and one blank sample in each batch of 25 samples. Every sample was processed with standard crushing to 85 per cent passing 75 microns on 500-gram splits. Samples were assayed by one-AT (30-gram) fire assay with an atomic absorption finish, and if results were higher than 3.5 g/t Au, assays were redone with a gravimetric finish. For QA/QC samples, a 50-gram fire assay was done. In addition to gold, ALS carried out multielement analysis for ME-ICP61 analysis of 33 elements four-acid inductively coupled plasma atomic emission spectroscopy.
The technical and scientific information in this press release has been reviewed and approved by Bertrand Brassard, MSc, PGeo, senior project geologist, who is a qualified person as defined by NI 43-101. Mr. Brassard has also verified the technical data contained in this press release using industry-accepted standards. Mr. Brassard is an employee of Troilus and is not independent of the company under NI 43-101.
The updated mineral resource estimate disclosed in this press release was prepared by Paul Daigle, geo, senior associate resource geologist with AGP, and the supporting technical report will be available on SEDAR under the company’s issuer profile within 45 calendar days. Mr. Daigle, who is an independent qualified person as defined under NI 43-101, has reviewed and approved the mineral resource estimate disclosed in this press release.
Galway Metals private placement
The TSX Venture Exchange has accepted for filing documentation with respect to a brokered private placement announced June 3, 2020.
Number of shares: 17,877,300 flow-through shares and 13,636,400 common shares
Purchase price: 63.5 cents per flow-through share and 44 cents per common share
Number of placees: 33 placees
Total pro group involvement: 1,441,890 (three placees)
Brokers’ fees/finders’ fees: Paradigm Capital Inc. and Laurentian Bank Securities Inc. received an aggregate of $1,041,126.09 in cash and 1,890,822 broker warrants. Each broker warrant is exercisable into one common share of the company at 44 cents for a period of two years.
Galway Metals drills 3.8 m of 4.3 g/t Au at Clarence
Galway Metals Inc. has released drill results from its Clarence Stream project. Hole CL20-65 contains abundant visible gold (VG) in a new massive quartz vein that is 14.4 metres (m) in core length, located 320 metres northeast of a previously reported new vein intersection of 11.4 grams per tonne gold over 2.0 m, including 43.5 g/t Au over 0.5 m in hole CL20-58. The intersection in hole 58 had been discovered 75 metres north of the George Murphy zone (GMZ) at the Clarence Stream gold project in southwestern New Brunswick.Read More
Numerous other intersections reported here are follow-up to the two new veins discovered 75 metres and 150 metres north of the George Murphy zone (April 29, 2020, press release). Additional intersections reported here are new veins discovered north and south of the GMZ, and stepouts to known veins. The latest results are highlighted by:
- Hole CL-65 intersected a new massive quartz vein that is 14.4 m core length from 242.1 to 256.5 m that contains 29 visible gold (VG) splashes located 246.5 to 246.8 m, 248.2 m, 252.4 to 253.2 m and 255.1 to 255.2 m downhole starting at a vertical depth of 171 m below surface. The new vein appears to be associated with a strong magnetic low and with a line of coincident soil anomalies, both located close to the interpreted location of the main structure on the property — the Sawyer Brook fault;
- 4.3 grams per tonne (g/t) Au over 3.8 metres (m), 1.9 g/t Au over 13.15 m, 1.7 g/t Au over 4.7 m and 1.0 g/t Au over 5.4 m, and many more intersections in at least four new veins at the GMZ, located north of the previous northern limit;
- 2.8 g/t Au over 8.4 m, 1.3 g/t Au over 6.0 m, 1.3 g/t Au over 5.2 m and 0.7 g/t Au over 5.9 m, and many more intersections in at least three new veins at the GMZ, located south of previously identified veins;
- 4.5 g/t Au over 8.45 m, 0.8 g/t Au over 21.25 m, 1.6 g/t Au over 19.9 m and 1.1 g/t Au over 9.8 m in known veins at the GMZ.
“Galway has made tremendous progress during the past month. The company raised $17-million to top up its treasury to $22-million. In doing so, we more than doubled the number of institutional shareholders to approximately 30 and fully financed our 75,000-metre, 200-hole Clarence Stream drill program through the end of 2021. We also made two new discoveries — one approximately 1.0 km southwest and along strike of the Jubilee zone, Clarence Stream’s westernmost known deposit by intersecting 186.5 g/t Au over 0.6 m, and we made another new discovery 3.7 km to the northeast with 14.4 metres of massive quartz veining hosting 29 splashes of visible gold reported here. We also bought back two NSR royalties, of which most payments can be made with Galway shares over a five-year period. With five rigs turning, Galway is looking forward to following up to expand both new discoveries and the known deposits within and beyond the 3.7 km long mineralized system,” said Robert Hinchcliffe, president and chief executive officer of Galway Metals.
- CL20-60: 1.7 g/t Au over 4.7 m, plus 1.0 g/t Au over 5.4 m, including 2.8 g/t Au over 1.0 m, plus 2.1 g/t Au over 1.05 m, at vertical depths of 217 m, 56 m and 28 m below surface, respectively;
- CL20-59: 4.5 g/t Au over 8.45 m, including 35.3 g/t Au over 0.7 m, plus 2.8 g/t Au over 8.4 m, plus 1.3 g/t Au over 6.0 m, plus 6.7 g/t Au over 0.8 m at vertical depths of 97 m, 156 m, 177 m and 140 m below surface, respectively;
- CL20-57: 1.9 g/t Au over 13.15 m, including 7.8 g/t Au over 1.0 m and 4.4 g/t Au over 0.75 m, plus 0.8 g/t Au over 21.25 m, including 2.1 g/t Au over 1.0 m and 2.2 g/t Au over 0.85 m, plus 0.7 g/t Au over 5.05 m, plus 0.7 g/t Au over 4.55 m, plus 0.8 g/t Au over 3.25 m at vertical depths of 164 m, 6.0 m, 131 m, 191 m and 197 m below surface, respectively;
- CL19-44A: 1.3 g/t Au over 5.15 m, including 4.2 g/t Au over 0.75 m, plus previously reported 6.5 g/t Au over 7.35 m, including 31.9 g/t Au over 0.6 m, at vertical depths of 65 m and 34 m below surface, respectively;
- CL19-43: 4.3 g/t Au over 3.8 m, including 8.4 g/t Au over 1.0 m, at a vertical depth of 43 m below surface;
- CL19-40: 1.1 g/t Au over 9.8 m, including 4.1 g/t Au over 0.85 m, plus 1.2 g/t Au over 3.65 m, plus 0.7 g/t Au over 5.9 m, including 2.5 g/t Au over 0.75 m, at vertical depths of 54 m, 69 m, and 135 m below surface, respectively;
- CL19-38: previously reported 0.8 g/t Au over 5.0 m is now 1.6 g/t Au over 19.9 m including 24.2 g/t Au over 0.5 m at a vertical depth of 214 m below surface.
On June 24, Galway announced a different new discovery that returned 186.5 g/t Au over 0.6 m, located 950 m southwest and along strike of the westernmost intersection of the Jubilee zone. That Jubilee intersection had returned 1.9 g/t Au over 43.3 m (35.7 m true width (TW)), including 21.2 g/t Au over 2.35 m, starting at a vertical depth of 36 m below surface (Sept. 5, 2019). Another similar vein to the discovery is located 13 m farther downhole and returned 2.2 g/t Au over 0.7 m. Galway plans on following up on this discovery in coming days.
The GMZ is 730 m long to date (excludes the new discovery), with multiple structures over 310 m horizontal thickness (width), and with all veins open in every direction. The new 14.4-metre quartz vein in hole 65 appears to be associated with a strong magnetic low and with a line of coincident soil anomalies, both located close to the interpreted location of the main structure on the property — the Sawyer Brook fault. It directly underlies a soil anomaly that gave a grade of 19 parts per billion. The anomaly is present on the next line 100 m to the east that gives it a strike along the magnetic low. It also lines up nicely with another soil anomaly located an additional 320 m east that grades 53 ppb. The anomalies extend for another 1.6 km east beyond that. They also extend 1.0 km southwest of the vein. Soil anomalies, in conjunction with glacial till and stream sediment anomalies led to the discovery of all five known gold deposits at Clarence Stream, and the property hosts many other as of yet untested gold anomalies. As Galway continues to make new discoveries, it is becoming apparent that Clarence Stream is an important new gold district in North America.
ASSAY RESULTS Hole ID From To Intercept Intercept TW Au (m) (m) (m) (m) (g/t) GMZ North trend GWM20CL-60 32.60 33.65 1.05 2.1 65.80 71.20 5.40 1.0 incl. 66.85 67.85 1.00 2.8 137.45 145.60 pending 148.00 150.00 2.00 0.6 243.10 255.30 pending 255.30 260.00 4.70 1.7 GWM20CL-59 123.15 124.05 0.90 0.50 0.7 134.40 135.40 1.00 0.60 0.6 141.30 149.75 8.45 5.10 4.5 incl. 141.30 142.00 0.70 0.40 35.3 152.05 152.80 0.75 0.50 0.4 153.55 155.80 2.25 1.40 0.5 192.70 197.40 4.70 2.80 0.7 incl. 192.70 193.30 0.60 0.40 2.0 204.75 205.55 0.80 0.50 6.7 228.65 237.05 8.40 5.10 2.8 237.05 249.00 pending 258.00 264.00 6.00 3.60 1.3 GWM20CL-57 8.15 29.40 21.25 14.90 0.8 incl. 10.00 11.00 1.00 0.70 2.1 incl. 28.55 29.40 0.85 0.60 2.2 33.25 34.00 0.75 0.50 1.7 39.80 41.65 1.85 1.30 1.6 61.75 62.50 0.75 0.6 170.65 171.45 0.80 0.4 177.35 178.15 0.80 1.3 191.25 196.30 5.05 0.7 216.0 217.50 1.50 3.0 226.05 226.85 0.80 1.1 232.40 233.20 0.80 0.5 234.90 235.65 0.75 0.6 239.60 252.75 13.15 1.9 incl. 240.50 241.50 1.00 7.8 incl. 249.75 250.50 0.75 4.4 281.90 286.45 4.55 0.7 292.80 296.05 3.25 0.8 GWM19CL-44A 18.00 33.00 15.00 8.80 1.0** 18.90 19.60 0.70 0.40 7.1** 49.00 56.35 7.35 4.30 6.5 VG** incl. 51.40 51.90 0.50 0.30 39.8 VG** incl. 52.65 53.70 1.050 0.60 31.9 VG** 56.35 92.00 pending** 94.00 99.15 5.15 3.00 1.3 incl. 94.00 94.75 0.75 0.40 4.2 110.85 111.85 1.00 0.60 0.7 127.60 133.25 pending** GWM20CL-43 44.00 55.20 pending** 55.2 59.00 3.80 4.3 incl. 55.20 56.20 1.00 8.4 84.35 85.35 1.00 0.50 1.2 186.45 187.20 0.75 0.40 0.6 188.80 190.90 2.10 1.00 1.1 incl. 190.25 190.00 0.65 0.30 2.4 223.35 224.35 1.00 0.50 0.4 247.20 248.00 0.80 0.40 0.9 280.65 281.30 0.65 0.30 1.2 GWM20CL-40 0 49.95 pending** 73.25 83.05 9.80 5.10 1.1 incl. 75.70 76.55 0.85 0.40 4.1 85.60 86.60 1.00 0.50 0.6 92.85 96.50 3.65 1.90 1.2 117.00 169.15 pending** 180.40 188.90 5.90 3.10 0.7 incl. 185.25 186.00 0.75 0.40 2.5 197.00 197.95 0.95 0.50 0.6 GWM19CL-39 113.95 116.00 2.05 1.00 1.4** 130.90 135.40 4.50 2.10 2.1** incl. 134.10 134.60 0.50 0.20 10.5 VG** 143.00 144.00 1.00 0.50 2.0 GWM19CL-38 0 174.00 pending** 193.00 194.00 1.00 0.30 0.8 198.95 201.35 2.40 0.70 2.3 ** 211.50 219.00 0.00 pending** was 225.00 230.00 5.00 1.50 0.8** now 223.50 243.40 19.90 5.80 1.6 incl. 237.20 237.70 0.50 0.10 24.2 251.00 251.80 0.80 0.20 1.6 259.95 411.00 pending** ** Previously released. VG: visible gold; 0.42 g/t Au was used for the bottom cut-off; true widths are unknown if not noted.
New Brunswick junior mining assistance program
Galway would like to acknowledge financial support from the New Brunswick junior mining assistance program, which partially funded drilling of the GMZ, Jubilee zone and Richard zone.
Geology and mineralization
The recent discovery of the Richard zone in hole 12 contains elevated levels of bismuth, arsenopyrite and antimony, in multiple quartz veins, with tungsten in the vicinity. This is similar to other Clarence Stream deposits, which can be characterized as intrusion-related quartz-vein hosted gold deposits. The Richard zone contains multiple zones of quartz veining with sulphides and sericite alteration. In general, mineralization at Clarence Stream consists of 10 to 70 per cent quartz stockworks and veins with 1 to 5 per cent fine pyrite plus pyrrhotite plus arsenopyrite plus stibnite in sericite altered sediments. The Jubilee mineralization consists of 2 to 5 per cent disseminated pyrite, sphalerite, galena, arsenopyrite, chalcopyrite and pyrrhotite in sediments with white to smoky grey quartz veining. Locally there is up to 10 per cent sphalerite and semi-massive galena veinlets. The 2.5 km trend that hosts the GMZ, Richard zone and Jubilee zone contains a mineralized mafic intrusive locally — similar to the South zone, which currently hosts most of the property’s last reported gold resources (September, 2017). A more complete description of Clarence Stream’s geology and mineralization can be found at the company’s website.
Review by qualified person, quality control and reports
Michael Sutton, PGeo, director and vice-president of exploration for Galway Metals, is the qualified person who supervised the preparation of the scientific and technical disclosure in this news release on behalf of Galway Metals. All core, chip/boulder samples and soil samples are assayed by Activation Laboratories, 41 Bittern St., Ancaster, Ont., Canada, which has ISO/IEC 17025 accreditation. All core is under watch from the drill site to the core processing facility. All samples are assayed for gold by fire assay, with gravimetric finish, and other elements assayed using ICP. The company’s QA/QC program includes the regular insertion of blanks and standards into the sample shipments, as well as instructions for duplication. Standards, blanks and duplicates are inserted at one per 20 samples. Approximately 5 per cent of the pulps and rejects are sent for check assaying at a second lab with the results averaged and intersections updated when received. Core recovery in the mineralized zones has averaged 99 per cent.
Steppe continues work on ATO bankable feasibility study
Steppe Gold Ltd. has provided an update on the bankable feasibility study (BFS) under way for the expansion of the ATO gold mine into fresh-rock ores, with a planned production profile of approximately 150,000 ounces of gold equivalent per year and an estimated 10-year mine life.Read More
In parallel with the company’s aggressive exploration program currently underway at the ATO Gold Mine, the Company has retained technical and project management advisers and is now working toward the completion of a BFS with a target date of March 2021. The BFS is built on a previously completed Centerra Gold 2012 Internal Feasibility study and on further internal studies undertaken by Steppe Gold from 2017 to present.
The Company is currently working on updating all resources and reserves for the ATO1, ATO2 and ATO4 deposits in addition to a maiden resource and reserve for the Mungu Discovery. Steppe Gold has completed a substantial amount of drilling at the ATO Gold Mine since resources and reserves were last calculated. The Company has drilled 1,840 metres at ATO1, 1,662 metres at ATO2, 14,760 metres at ATO4 and over 26,573 metres have been drilled at the Mungu Discovery.
Financing strategies for the ATO Gold Mine Expansion are advancing in parallel with the BFS process with construction targeted for commencement in mid-2021. The Company has commenced discussions with project finance and lending groups and it expects to fund its equity contribution from operating cash flows and cash on hand. Post the recent placement of shares to Eric Sprott the Company has approximately US$22M cash on hand with regular gold sales from the ATO Gold Mine continuing.
The Company expects a smooth transition from open cut oxide ores being heap leached to the processing of open cut fresh rock ores through a new flotation and CIL circuit. The Company is targeting first production from the ATO Gold Mine Expansion in mid to late 2022.
Steppe Gold’s chief executive officer, Bataa Tumur-Ochir, commented: “With our Phase 1 production now well underway and generating strong cash flows, we are excited to be accelerating the expansion of the ATO Gold Mine into fresh rock ores. Previous studies by Centerra and our own in-house work provide us with a high level of confidence in the economic potential of the fresh rock expansion.
This larger second phase will clearly demonstrate that the ATO Gold Mine is a robust, long life, low cost operation with considerable exploration growth through aggressive drilling programs.”
The technical content of this news release has been reviewed and approved by Enkhtuvshin Khishigsuren as the Qualified Person.
Estimates noted above were prepared for local Mongolian requirements and are not currently compliant with NI 43-101.
Maple Gold increases private placement to $4.75-million
Maple Gold Mines Ltd. is upsizing the previously announced non-brokered HD financing (see press release July 23, 2020). The increased financing is for aggregate gross proceeds of up to $4.75-million through the issuance of up to approximately 27,941,175 common shares at a price of 17 cents per share.Read More
Maple Gold’s president and chief executive officer, Matthew Hornor, commented: “Due to strong demand we have decided to increase our financing slightly in order to fit a few additional investors into the private placement.”
The company intends to use the net proceeds from the private placement to continue advancing the Douay gold project and for general corporate purposes.
Brixton samples up to 68.8 g/t Au at Thorn project
Brixton Metals Corp. has provided an update on its Thorn project exploration activities. Ongoing soil geochemical surveys and rock sampling has returned gold values up to 68.8 grams per tonne gold from the West Outlaw target area where preparation for drilling has started.Read More
Due to strong investor demand Brixton is pleased to announce it has increased its offering and is now fully-subscribed on its non-brokered private placement of a combination of units and flow-through shares of the company for gross proceeds of up to $5.5-million as further described in its news release dated July 24, 2020.
Since June 2020, Brixton has collected 4,480 soil samples and 763 rock samples across several large-scale copper and gold targets on the Thorn Project. The Company completed 12km of IP geophysical surveys, which is the extension of the 2019 survey and two deep downhole IP geophysical surveys over the Camp Creek Porphyry target. Gold results to date from the Outlaw target are reported here and copper results will be reported in a separate news release upon interpretation of the geophysical and geochemical data and as it becomes available.
So far this season, a total of 972 soils and 39 rocks samples were collected over the Outlaw Target area. Four of the 39 rock samples returned greater than 2 g/t Au and two rock samples returned greater than 10 g/t Au, as 14.5 g/t Au and 68.8 g/t Au respectively. No drilling has been done in the Outlaw West area, which is a 1,000m by 500m gold-in-soil anomaly.
257 samples returned greater than 30 ppb Au, 96 samples returned greater than 100 ppb Au and 11 samples were greater than 1,000 ppb Au. All of the 11 soil samples greater than 1,000 ppb Au are concentrated at the West Outlaw area.
Chairman and CEO of Brixton, Gary R. Thompson stated, “Our boots on the ground approach this season at the Thorn project is paying off with strong gold and copper numbers from several new target areas and the expansion of the Outlaw West target is looking very promising for high grade gold mineralization. We are now gearing up for drilling at the Outlaw West Gold target as we continue to generate new large-scale copper-gold targets on the district scale project.”
An estimated 10 drill core holes are planned for 2500m to 3000m at the Outlaw Gold Target.
The Company is on track to complete its planned 10,000 soils and 1,000 rock sample program this season at the Thorn Project. Further geophysical surveys are planned subject to favorable weather conditions. Further drilling is planned for the balance of the season and is subject to refinement of field mapping, geochemistry and geophysical surveys. In addition to the blind porphyry target at Camp Creek which remains to be fully drill tested, the Company believes that multiple new discoveries can be made within the district scale system.
Private placement update
Due to strong demand, Brixton has increased its previously announced private placement to gross proceeds of $5.5-million, consisting of a combination of units and flow-through shares of the company. Each unit is being offered at a price of 25 cents and will be comprised of one common share of the company and one common share purchase warrant. Each flow-through share is being offered at a price of 28 cents and will be comprised of one common flow-through share of the company. Each warrant entitles the holder thereof to acquire one common share of the company at a price of 35 cents for a period of 36 months from the date of closing of the offering. The offering is scheduled to close on or about Aug. 12, 2020, and is subject to receipt of all necessary approvals including the approval of the TSX Venture Exchange.