Viva Gold Corp. has filed and commenced mailing of materials to the shareholders of Viva, including the management information circular of the company dated March 25, 2021, for the special meeting of Viva shareholders to be held on May 3, 2021, in connection with the proposed acquisition by Golden Predator Mining Corp. of all of the issued and outstanding common shares of the company by way of a plan of arrangement.
Benefits of the ArrangementAttractive Premium: A 35% to Shareholders over the 20-day VWAP, and 35% to the 30-day VWAP of the Viva Shares as at March 1, 2021.Future Growth: The Arrangement provides Shareholders the opportunity to continue to participate in the future growth of Viva's Tonopah Gold Project, as well as in a larger entity with stronger growth potential from a more diversified asset base supported by the financial resources available to GPY to develop such asset base.Fairness Opinion: The Viva Board received an Evans & Evans Opinion to the effect that, as of March 1, 2021, the consideration to be received by Shareholders pursuant to the Arrangement is fair, from a financial point of view, to Shareholders.Increased Liquidity: The Arrangement is anticipated to provide Shareholders with increased liquidity by the receipt of GPY Shares for their existing Viva Shares, due to GPY's larger market capitalization and access to capital.Significantly strengthened management and leadership team: An enhanced GPY management team with balanced and complimentary skillsets with proven mine building capacity and in-house technical expertise to advance projects.Cost Synergies and Enhanced balance sheet: Reduced overhead combined with a good cash position and marketable securities.
THE CONSIDERATION1.60 Class A Common Shares of GPY for each Viva Share held (the "Consideration"). The Consideration represents a 35% premium to the 30-day volume weighted average price of the Viva Shares as of March 1, 2021.
BOARD RECOMMENDATIONAfter a recommendation from a Special Committee to the Board, the board of directors of Viva (the "Board") voted in favor of this Arrangement. As a result, the Board recommends that Viva Shareholders vote in favor of the Arrangement.
THE NEW COMBINED TEAMOn closing of the Arrangement, subject to TSX Venture Exchange approval, the directors of GPY will consist of: William Sheriff (Executive Chair); James Hesketh (Chief Executive Officer); two nominees selected by Viva and three nominees selected by GPY. Management of GPY will consist of James Hesketh, President and Chief Executive Officer, Steven Krause, Chief Financial Officer, and Michael Maslowski, Chief Operating Officer.The Board recommends that Shareholders vote FOR the Arrangement
Your vote is important regardless of the number of Viva Shares you own. As a Shareholder, it is very important that you read the Circular and related materials with respect to the Meeting carefully and then vote your Viva Shares.
Viva MeetingThe Meeting will be held on May 3, 2021 at 2:00 p.m. (Vancouver Time), at #302 – 8047 199 Street, Langley BC V2Y-0E2, Canada.
At the Meeting, Shareholders will be asked to consider and, if thought advisable, to pass a special resolution approving the Arrangement. The Circular contains a detailed description of the Arrangement, as well as certain additional information relating to Viva.
YOUR VOTE IS IMPORTANT – PLEASE VOTE TODAY
Shareholder Questions and AssistanceIf you have any questions or require assistance voting your Viva Shares, please contact our proxy solicitation agent, Laurel Hill Advisory Group, at 1-877-452-7184 toll-free in North America, or outside North America at +1 416 304-0211, or by e-mail at assistance@laurelhill.com.
Global Metals & Mining Investor Conference Presentations Now Available for On-Demand Viewing
Individual and institutional investors as well as advisors are invited to log-on to VirtualInvestorConferences.com to view presentations
NEW YORK, April 5, 2021 /PRNewswire/ — Virtual Investor Conferences, the leading proprietary investor conference series today announced that the presentations from the March Extractive Industry lnvestor Conference are now available for on-demand viewing.
The company presentations will be available 24/7 for 90 days. Investors, advisors and analysts may download shareholder materials from the “virtual trade booth” for the next three weeks.
Participating Companies:
Presentation
Ticker(s)
Keynote Presentation: By-Passing China in the Economic RecoveryChristopher Ecclestone, Mining Strategist Hallgarten & Co.
Appia Energy Corp.
(OTCQB: APAAF | CSE: API)
Osisko Metals Inc.
(OTCQX: OMZNF | TSX-V: OM)
Nova Royalty Corp.
(OTCQB: NOVRF | TSX-V: NOVR)
Northern Minerals Ltd.
(Pink: NMEX | ASX: NTU)
Luncheon Speaker: Can Critical Metal Supply Chains be Economically Constructed in the Free World?Jack Lifton, Founder, Technology Metals Research
Energy Fuels Inc.
(NYSE American: UUUU | TSX: EFR)
Vision Lithium Inc.
(OTCQB: ABEPF | TSX-V: VLI)
Electric Royalties, Ltd.
(Pink: ELECF | TSX-V: ELEC)
Intercontinental Gold and Metals Ltd.
(TSX-V: ICAU)
Canada Silver Cobalt Works Inc.
(OTCQB: CCWOF | TSX-V: CCW)
Renforth Resources Inc. – Nickel/Surimeau
(OTCQB: RFHRF | CSE: RFR)
Thor Mining PLC
(OTCQB: THORF | ASX: THR | AIM: THR)
Vital Metals Ltd.
(Pink: VTMXF | ASX: VML)
Lake Resources NL
(OTCQB: LLKKF | ASX: LKE)
Keynote Presentation: The Outlook for Precious Metals PricesJeffrey M. Christian, Managing Partner CPM Group
Amex Exploration Inc.
(OTCQX: AMXEF |TSX-V: AMX)
Bonterra Resources Inc.
(OTCQX: BONXF | TSX-V: BTR)
Vanstar Mining Resources, Inc.
(Pink: VMNGF | TSX-V: VSR)
Signature Resources Ltd.
(OTCQB: SGGTF | TSX-V: SGU)
Luncheon Speaker: Silver: The Technometal New Demand, New Policy, New FuturePhillips S. Baker, Jr., President & CEO of Hecla Mining
To facilitate investor relations scheduling, for more information about the program and to view a complete calendar of Virtual Investor Conferences, please visit www.virtualinvestorconferences.com.
Global Metals & Mining Investor Conference Presentations Now Available for On-Demand Viewing
Individual and institutional investors as well as advisors are invited to log-on to VirtualInvestorConferences.com to view presentations
NEW YORK, April 5, 2021 /PRNewswire/ — Virtual Investor Conferences, the leading proprietary investor conference series today announced that the presentations from the March Extractive Industry lnvestor Conference are now available for on-demand viewing.
The company presentations will be available 24/7 for 90 days. Investors, advisors and analysts may download shareholder materials from the “virtual trade booth” for the next three weeks.
Participating Companies:
Presentation
Ticker(s)
Keynote Presentation: By-Passing China in the Economic RecoveryChristopher Ecclestone, Mining Strategist Hallgarten & Co.
Appia Energy Corp.
(OTCQB: APAAF | CSE: API)
Osisko Metals Inc.
(OTCQX: OMZNF | TSX-V: OM)
Nova Royalty Corp.
(OTCQB: NOVRF | TSX-V: NOVR)
Northern Minerals Ltd.
(Pink: NMEX | ASX: NTU)
Luncheon Speaker: Can Critical Metal Supply Chains be Economically Constructed in the Free World?Jack Lifton, Founder, Technology Metals Research
Energy Fuels Inc.
(NYSE American: UUUU | TSX: EFR)
Vision Lithium Inc.
(OTCQB: ABEPF | TSX-V: VLI)
Electric Royalties, Ltd.
(Pink: ELECF | TSX-V: ELEC)
Intercontinental Gold and Metals Ltd.
(TSX-V: ICAU)
Canada Silver Cobalt Works Inc.
(OTCQB: CCWOF | TSX-V: CCW)
Renforth Resources Inc. – Nickel/Surimeau
(OTCQB: RFHRF | CSE: RFR)
Thor Mining PLC
(OTCQB: THORF | ASX: THR | AIM: THR)
Vital Metals Ltd.
(Pink: VTMXF | ASX: VML)
Lake Resources NL
(OTCQB: LLKKF | ASX: LKE)
Keynote Presentation: The Outlook for Precious Metals PricesJeffrey M. Christian, Managing Partner CPM Group
Amex Exploration Inc.
(OTCQX: AMXEF |TSX-V: AMX)
Bonterra Resources Inc.
(OTCQX: BONXF | TSX-V: BTR)
Vanstar Mining Resources, Inc.
(Pink: VMNGF | TSX-V: VSR)
Signature Resources Ltd.
(OTCQB: SGGTF | TSX-V: SGU)
Luncheon Speaker: Silver: The Technometal New Demand, New Policy, New FuturePhillips S. Baker, Jr., President & CEO of Hecla Mining
To facilitate investor relations scheduling, for more information about the program and to view a complete calendar of Virtual Investor Conferences, please visit www.virtualinvestorconferences.com.
About Virtual Investor Conferences® Virtual Investor Conferences (VIC) is the leading proprietary investor conference series that provides an interactive forum for publicly-traded companies to meet and present directly with investors.
A real-time solution for investor engagement, Virtual Investor Conferences is part of OTC Market Group’s suite of investor relations services specifically designed for more efficient Investor Access. Replicating the look and feel of on-site investor conferences, Virtual Investor Conferences combine leading-edge conferencing and investor communications capabilities with a comprehensive global investor audience network.
Nighthawk Reports Remaining 2020 Results for Colomac and Treasure Island
Colomac Highlight: Hole C20-07 returned 3.00 g/t Au over 32.7 m
Treasure Island Highlight: T20-09 returned 207.18 g/t Au over 5.5 m (uncut), including 2,260 g/t Au over 0.5 m
TORONTO, ON / ACCESSWIRE / April 5, 2021 / Nighthawk Gold Corp. (“Nighthawk” or the “Company“) (TSX:NHK)(OTCQX:MIMZF) is pleased to report the remaining results from its 2020 exploration program on the Colomac Deposit (“Colomac“) and the Treasure Island Zone (“Treasure Island“), within its 100% owned Indin Lake Gold Property (930km2 land package), located in the Northwest Territories of Canada.
Assay results from the remaining drill holes completed at Colomac (10 holes for 6,433 metres, see Table 1, Figure 1), and Treasure Island (3 holes for 1,186 metres, see Table 2, Figure 7), have been received and returned significant results at both locations.
Richard Roy, VP Exploration commented: “We are pleased to report on the remaining 2020 drill results at Colomac and Treasure Island. Treasure Island encountered high-grade results, where hole T20-09 returned 207.18 g/t Au over 5.5 metres, including a single assay of 2,260 g/t Au over 0.5 metres. Consistent higher grade at Treasure Island remains to be demonstrated by drilling. With these recent Treasure Island results now in hand, all results to date will be compiled, analysed, and modeled in order to establish its potential to add higher-grade mineralization to the global resource base.
“The Colomac results illustrate the potential for resource growth at depth, however drilling in 2021 will focus on further delineation of near-surface mineralization in an effort to increase the in-pit resources. The potential at depth on Colomac remains very significant, but quality near surface targets remain untested at Colomac and will be prioritized in 2021.”
Colomac:
Hole C20-07C (Figure 2) was completed at Zone 3.5 and returned 3.00 grams per tonne gold (“g/t“, “Au“) over 32.7 metres (“m“), supporting the continuity of the higher-grade mineralization previously obtained at depth.
Holes C20-14 and C20-17(17B) tested Zone 2.5 at depth. Although no extensively wide intervals were obtained, hole C20-17 (Figure 3), did return a high-grade interval of 12.36 g/t Au over 4.3 m (26.08 g/t Au uncut) including a 0.5 m sample assaying 218.00 g/t Au.
Holes C20-15(15B), C20-16, C20-18(18B), and C20-20 were drilled on Zone 1.5 testing the depth extension of the mineralization. Significant intervals were obtained, particularly in holes C20-18B (Figure 4), which returned 1.67 g/t Au Au over 61 m (1.72 g/t Au uncut), and C20-20 returned 2.44 g/t Au over 30.25 m (Figure 5). These results demonstrate that Zone 1.5 remains wide and well mineralized at depth, adding to the resource potential within this zone.
Holes C20-19 (Figure 6), tested Zone 2.0 and returned a wide intersection of 1.03 g/t Au over 64.1 m, including 2.88 g/t Au over 7.5 m at. Drilling at Zone 2.0 continues to encounter both extensive widths and higher-grade intervals within the mineralization.
Treasure Island:
The remaining three holes completed at Treasure Island (Main Zone), returned significant higher grade gold mineralization at depth, including:
Hole T20-07 (Figure 8) returned 5.62 g/t Au over 3.3 m;
Hole T20-09 (Figure 9) returned 4.65 g/t Au over 2.05 m, and 207.18 g/t Au over 5.5 m (uncut), including a single assay result of 2,260.00 g/t Au over 0.5 m; and
Hole T20-10 (Figure 10) returned 37.59 g/t Au over 2.35 m (uncut) including a single sample of 0.5 m which assayed 80.75 g/t Au.
Note: Assay results for Colomac are cut at 50 g/t Au as per parameters identified within the 2021 Mineral Resource Estimate. No cutting is applied to Treasure Island holes. Lengths are reported as core lengths. True widths vary depending on drill hole dip. (see Table 1 and 2)
Table 1 – Colomac Drill Results – Summary Table
Zone
Hole ID
Interval (m)
Core Length
Gold Grade(cut @ 50)
Gold Grade (uncut)
From
To
(m)
(g/t)
(g/t)
3.5
C20-07B
49.70
50.40
0.70
1.38
–
C20-07C
168.00
169.00
1.00
1.04
–
C20-07C
174.00
175.00
1.00
1.42
–
C20-07C
188.00
189.00
1.00
1.14
–
C20-07C
210.00
210.50
0.50
1.92
–
C20-07C
212.90
213.90
1.00
3.33
–
C20-07C
259.20
259.90
0.70
1.18
–
C20-07C
265.50
269.30
3.80
3.21
–
C20-07C
560.50
561.00
0.50
17.60
–
C20-07C
563.60
564.30
0.70
1.10
–
C20-07C
569.10
601.80
32.70
3.00
–
C20-07C
602.50
603.00
0.50
1.40
–
C20-07C
610.80
614.90
4.10
1.45
–
C20-07C
617.00
617.70
0.70
1.04
–
C20-07C
633.20
633.90
0.70
1.11
–
C20-07C
642.10
646.70
4.60
5.26
–
C20-07C
665.20
687.00
21.80
3.01
–
C20-07C
696.30
697.00
0.70
2.09
–
C20-07C
715.90
716.60
0.70
8.28
–
C20-07C
726.40
727.10
0.70
4.77
–
C20-07C
733.05
742.70
9.65
1.93
–
2.5
C20-14
339.75
340.50
0.75
2.50
–
C20-14
411.75
419.25
7.50
1.18
–
2.5
C20-14
430.50
431.25
0.75
1.30
–
C20-14
438.75
439.50
0.75
2.59
–
C20-14
476.25
477.00
0.75
1.37
–
C20-14
488.25
502.00
13.75
1.61
–
C20-14
516.00
517.00
1.00
1.83
–
1.5
C20-15B
512.50
513.25
0.75
1.05
–
C20-15B
514.75
515.35
0.60
9.04
–
C20-15B
525.40
535.50
10.10
1.63
–
C20-15B
544.30
544.80
0.50
1.04
–
C20-15B
559.25
559.95
0.70
1.90
–
C20-15B
561.85
562.35
0.50
1.39
–
C20-15B
566.15
567.45
1.30
3.45
–
C20-15B
576.25
576.75
0.50
5.04
–
C20-15B
583.05
592.20
9.15
1.64
–
C20-16
651.60
658.60
7.00
1.72
–
C20-16
680.80
681.50
0.70
2.90
–
C20-16
688.90
689.60
0.70
1.56
–
2.5
C20-17
254.85
259.15
4.30
12.36
26.08
including
255.35
255.85
0.50
–
218.00
C20-17
280.20
280.90
0.70
2.71
–
C20-17
297.35
305.90
8.55
1.07
–
C20-17
330.90
331.60
0.70
1.62
–
C20-17B
362.90
363.40
0.50
1.63
–
C20-17B
387.40
388.10
0.70
1.42
–
C20-17B
439.90
440.60
0.70
5.28
–
1.5
C20-18B
399.95
400.70
0.75
1.79
–
C20-18B
470.00
470.50
0.50
–
75.60
C20-18B
477.10
477.60
0.50
4.59
–
C20-18B
489.70
490.20
0.50
27.80
–
C20-18B
518.00
518.70
0.70
1.16
–
C20-18B
531.55
532.05
0.50
1.01
–
C20-18B
533.25
533.75
0.50
1.32
–
C20-18B
534.45
535.00
0.55
1.31
–
C20-18B
555.50
566.60
11.10
1.65
–
C20-18B
585.30
585.80
0.50
2.67
–
C20-18B
597.30
598.00
0.70
1.10
–
C20-18B
600.80
609.20
8.40
2.65
–
C20-18B
618.30
619.30
1.00
2.13
–
C20-18B
620.30
620.80
0.50
1.27
–
C20-18B
628.70
639.80
11.10
2.05
–
C20-18B
643.80
644.30
0.50
3.65
–
1.5
C20-18B
649.30
649.80
0.50
1.43
–
C20-18B
650.30
651.00
0.70
2.06
–
C20-18B
653.60
654.60
1.00
1.43
–
C20-18B
655.10
655.80
0.70
1.90
–
C20-18B
659.10
720.30
61.20
1.67
1.72
C20-18B
728.10
728.60
0.50
1.51
–
C20-18B
729.80
731.20
1.40
1.87
–
C20-18B
732.60
733.30
0.70
1.21
–
C20-18B
745.20
745.90
0.70
2.39
–
C20-19
414.00
478.10
64.10
1.03
–
including
446.20
453.70
7.5
2.88
–
C20-19
490.60
491.10
0.50
3.51
–
C20-19
495.50
496.20
0.70
4.23
–
C20-19
498.80
499.30
0.50
1.42
–
C20-19
500.30
501.00
0.70
1.27
–
C20-20
448.85
479.10
30.25
2.44
–
C20-20
483.80
484.50
0.70
1.60
–
C20-20
492.60
517.50
24.90
1.49
–
C20-20
524.50
525.20
0.70
2.50
–
C20-20
531.50
532.20
0.70
1.31
–
C20-20
540.30
621.50
81.20
1.48
1.54
C20-20
639.70
678.10
38.40
1.46
–
C20-20
689.10
689.60
0.50
1.95
–
C20-20
690.30
691.00
0.70
2.18
–
C20-20
693.60
694.10
0.50
5.47
–
C20-20
696.30
696.80
0.50
1.57
–
C20-20
698.70
700.80
2.10
1.33
–
C20-20
711.10
711.60
0.50
1.89
–
C20-20
712.10
712.60
0.50
1.00
–
C20-20
713.10
713.60
0.50
2.69
–
C20-20
715.30
716.00
0.70
1.93
–
C20-20
720.90
722.10
1.20
1.07
–
C20-20
723.50
724.90
1.40
2.75
–
C20-20
726.70
727.40
0.70
2.74
–
C20-20
742.00
742.70
0.70
2.37
–
Note: Assay results for Colomac are cut at 50 g/t Au as per parameters identified within the 2021 Mineral Resource Estimate. Lengths are reported as core lengths. True widths vary depending on drill hole dip.
Figure 6 – Planview of Treasure Island – Main Zone Drilling
Figure 7 – Treasure Island – Main Zone Cross Section – Drill Hole T20-07
Figure 8 – Treasure Island – Main Zone Cross Section – Drill Hole T20-09
Figure 9 – Treasure Island – Main Zone Cross Section – Drill Hole T20-10
Qualified Person
Richard Roy P.Geo., a member of OGQ and NAPEG, V.P. Exploration of Nighthawk, who is the Qualified Person as defined by NI 43-101 for this project, has reviewed and approved of the technical disclosure contained in this news release.
Technical Information
Nighthawk has implemented a quality-control program to comply with best practices in the sampling and analysis of drill core. Drill core samples were transported in security-sealed bags for analyses at ALS Chemex Assay Laboratory in Vancouver, BC (“ALS Chemex“). ALS Chemex is an ISO 9001:2000 certified laboratory. Pulp and metallics assaying for gold was conducted on the entire pulverized sample.
As part of its QA/QC program, Nighthawk inserts external gold standards (low to high grade) and blanks every 20 samples in addition to the standards, blanks, and pulp duplicates inserted by ALS Chemex.
About Nighthawk
Nighthawk is a Canadian-based gold exploration company with 100% ownership of a district-scale land position within the Indin Lake Greenstone Belt, located approximately 200km north of Yellowknife, Northwest Territories, Canada. Within this largely underexplored Archean gold camp, the Company has identified a number of high-priority targets all centered around a growing multi-million-ounce deposit. These targets lie within large regional deformation zones that are pregnant with gold mineralization and are known to host significant deposits which warrant additional exploration and follow-up. The main goals and objectives over the next 12-24 months will be to carry out aggressive exploration to support resource expansion opportunities as well as to foster new, near-surface discoveries that support the global resource base.
The Company has an experienced and dedicated team with a track record of successfully advancing projects and is well funded and supported to complete its goals and objectives.
The Toronto Stock Exchange has neither reviewed nor accepts responsibility for the adequacy or accuracy of this news release.
Forward-Looking Information
This news release contains “forward-looking information” within the meaning of applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, information with respect to, the Company’s continued exploration programs and the ability to advance targets and the timing and results thereof; the ability to increase the global mineral resource base with additional drilling; the mineral resource estimate; and access to available capital to complete all work necessary to achieve the Company’s stated goals and objectives. Generally, forward-looking information can be identified by the use of forward-looking terminology such as “plans”, “expects”, or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates”, or “does not anticipate”, or “believes” or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might”, or “will be taken”, “occur”, or “be achieved”.
Forward-looking information is based on the opinions and estimates of management at the date the information is made, and is based on a number of assumptions and is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Nighthawk to be materially different from those expressed or implied by such forward-looking information, including risks associated with the exploration, development and mining such as economic factors as they effect exploration, future commodity prices, changes in foreign exchange and interest rates, actual results of current exploration activities, government regulation, political or economic developments, environmental risks, permitting timelines, capital expenditures, operating or technical difficulties in connection with development activities, employee relations, the speculative nature of gold exploration and development, including the risks of diminishing quantities of grades of reserves, contests over title to properties, and changes in project parameters as plans continue to be refined as well as those risk factors discussed in Nighthawk’s annual information form for the year ended December 31, 2019, available on http://www.sedar.com. Although Nighthawk has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. Nighthawk does not undertake to update any forward-looking information, except in accordance with applicable securities laws.
SOURCE: Nighthawk Gold Corp
GoviEX files updated Madaouela PFS
A technical report titled “An Updated Pre-Feasibility Study for the Madaouela Project, Niger,” dated effective April 5, 2021, which supports the disclosure in GoviEX Uranium Inc.’s news release dated Feb. 18, 2021, has been filed today under the company’s profile on SEDAR.
Key highlights of the report, as previously described in the Feb. 18, 2021, news release:
Open-pit mining in the early years with capex reduced by 15 per cent and opex down by 20 per cent;
Captive water source, consumption reduced by 66 per cent;
Grid-level electrical power existing within Madaouela project boundary;
Prioritize local skilled labour and local venders;
Straightforward industry-standard process design — reducing construction and operational risks;
Mining permit and environmental certificate already secured;
Potential to service debt of $150-million (U.S.) to $180-million (U.S.);
Ability to fast-track feasibility study in 2021 to target rapid development;
Next steps to accelerate project financing and offtake options.
The report was prepared by SRK Consulting (U.K.) Ltd. in accordance with Canadian National Instrument 43-101 Standards of Disclosure for Mineral Projects, and is available on the company’s website and under the company’s profile on SEDAR.
Qualified persons
The qualified persons from SRK for the report are:
EurGeol Robert John Bowell, PhD, CChem, CGeol — corporate consultant (geochemistry and processing);
Daniel Rene Guibal, Min Eng, FAusIMM (CP), MMICA, MGAA — corporate consultant (geostatistics and resources);
Filip Orzechowski (MSc FIMMM CEng) — principal consultant (mining);
Jurgen Fuykschot (MSc MBA, MAusIMM) — principal consultant (mining engineering).
The scientific and technical information in this release has been reviewed and approved by Dr. Rob Bowell, a chartered chemist of the Royal Society of Chemistry, a chartered geologist of the Geological Society of London, and a fellow of the Institute of Mining, Metallurgy and Materials, who is an independent qualified person under the terms of National Instrument 43-101 for uranium deposits. Mr. Bowell has verified the data disclosed in this news release.
Arizona Metals arranges $15.01M placement
Arizona Metals Corp. has entered into an agreement with a syndicate of underwriters led by Stifel GMP and Clarus Securities Inc., pursuant to which the underwriters have agreed to purchase, on a bought-deal private placement basis, 7.15 million special warrants of the company at a price of $2.10 per special warrant for aggregate gross proceeds to the company of $15,015,000. The company has agreed to grant the underwriters an overallotment option to purchase up to an additional 1,072,500 special warrants at the issue price exercisable in whole or in part, at any time and from time to time on or prior to the date that is 48 hours prior to the closing date (as defined below).
This financing will allow the company to increase the fully financed Kay mine phase 2 expansion drill program, currently under way, from 25,000 to 75,000 metres.
Marc Pais, chief executive officer, commented: “We appreciate the continued support and confidence of current and new shareholders. This financing will allow us to triple the planned drilling at the Kay mine phase 2 Expansion program from 25,000 m to 75,000 m. We can now accelerate the testing of numerous satellite targets on strike and to the west of the Kay mine, previously identified using a combination of structural mapping, helicopter electromagnetic (VTEM) surveys, borehole electromagnetic surveys (BHEM), and soil and rock geochemical sampling. A recently completed property-wide gravity survey has helped to refine the current drill targets, while also identifying new historically untested targets. We are currently scheduling a third and fourth drill rig to the Kay mine and will provide further details of the expanded program in a future release.”
Each special warrant shall be issued under a special warrant indenture and shall entitle the holder thereof to receive, without payment of additional consideration, one unit of the company. Each unit shall consist of one common share of the company and one-half of one common share purchase warrant. Each warrant will entitle the holder thereof to purchase one common share of the company at a price of $3 for a period of 12 months following the closing date of the offering.
The special warrants shall be deemed exercised on behalf of, and without any required action on the part of, the holders (and for no additional consideration) on the earlier of: (i) the second business day following the date on which a final receipt is obtained from the Ontario Securities Commission, as principal regulator on behalf of the securities regulatory authorities in each of the qualifying jurisdictions (as defined herein), for a (final) short-form prospectus qualifying for distribution the units underlying the special warrants; and (ii) 5 p.m. Toronto time on the date that is four months and a day following the closing date.
In the event the qualification date has not occurred on or before the date that is 10 weeks following the closing date, each special warrant shall thereafter entitle the holder to receive, upon the exercise or deemed exercise of each special warrant, for no additional consideration, 1.1 units.
The company plans to use the net proceeds from the offering to finance exploration and development work at the Kay mine copper-gold VMS (volcanogenic massive sulphide) project in Arizona, and for working capital and general corporate purposes.
The special warrants will be offered on a private placement basis in all provinces of Canada, except Quebec. The special warrants will also be offered in the United States on a private placement basis pursuant to available exemptions from the registration requirements of the U.S. Securities Act of 1933, as amended, and in such other jurisdictions outside of Canada and the United States, as mutually agreed by the company and the underwriters, in each case in accordance with all applicable laws.
The offering is scheduled to close on or about April 22, 2021, and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the TSX Venture Exchange and the securities regulatory authorities.
Copper Fox plans IP survey for Mineral Mountain
Copper Fox Metals Inc. and its wholly owned subsidiary, Desert Fox Copper Inc., plan to complete a deep penetrating induced polarization (chargeability/resistivity) survey on its 100-per-cent-owned Mineral Mountain copper project located approximately 15 miles east of Florence, Ariz.
Highlights:12.5 kilometers of geophysical survey to test the continuity at depth of the copper mineralization in Target #1 and Target #2. The survey will map the chargeability and resistivity signatures to an average depth of 600 meters (“m”) below surface. Target #1 is hosted in Laramide age mineralized multi-phase intrusive stock and measures 4,500m long by up to 2,000m wide.Target #2 is hosted in Precambrian granite and diabase, measuring 2,800m long by 400m wide located approximately 800m southeast of Target #1.
Elmer B. Stewart, President and CEO of Copper Fox, stated, “The objective of the geophysical survey is to advance the project to the drill ready stage by mapping the chargeability/resistivity signatures below the copper mineralization exposed in outcrop on both Targets. Assuming positive results, the data will be combined with previous work to select drill hole locations.”
Geological Model:
The geological model centers on a multi-phase Laramide age intrusive with mineralized and non-mineralized granodiorite phases and a mineralized quartz monzonite phase intruding the Precambrian Pinal Schist. The intrusive has been age dated at 69.7 +/- 0.4 Ma utilizing U/Pb zircon age dating and is cut by a series of syn-mineralization and late-stage dikes of varying composition. Porphyry copper style of mineralization and alteration occurs in a large portion of the stock.
Petrographic Studies:
Petrographic studies indicate an early potassic phase, overprinted by pervasive sericite and late stage propylitic alteration and transformation of primary chalcopyrite to secondary malachite, covellite and chalcocite due to weathering/oxidization/enrichment processes that were active after the Laramide hydrothermal event.
Mineralization:
Target #1 consists of three overlapping styles of copper mineralization occurring as disseminations, and in northeast and northwest striking quartz vein/veinlet stockwork and fractures.
In Target #2, copper mineralization occurs in quartz vein/vein stockworks and fractures hosted in Precambrian Pinal Schist, Diabase and the Ruin Granite with similar strike and dip directions to that observed in Target #1.
Analytical Results:
The copper mineralization exposed in outcrop is interpreted to represent the lower portion of the supergene zone that resulted from cycles of weathering/oxidization/metal enrichment that occurred after the Laramide hydrothermal event. The supergene process increases certain metal concentrations at the bottom of the weathered zone which suggests that the samples used to determine Average Concentrations, Median Values and Range of Metal Concentrations shown below, are not necessarily representative of the mineralization on the property.
Average Concentrations:
Style of Number of Cu Cu Mo Au Ag
Mineralization Samples (ppm) (%) (ppm)(ppb)(ppm)
Disseminated 47 5,752 0.57571.8 57.9 6.6
Quartz Vein 141 12,0201.20265.3 127.516.3
Fracture 135 4,223 0.42213.6 43.1 7.3
Cu = copper, Mo = molybdenum, Au = gold, Ag =silver, (%) = percent, ppm = parts per million, ppb = parts per billion
Median Values:
Style of Number of Cu Cu Mo Au Ag
Mineralization Samples (ppm) (%) (ppm)(ppb)(ppm)
Disseminated 47 2,5950.259 4.0 11.0 2.3
Quartz Vein 141 5,7700.57710.7 28.0 2.6
Fracture 135 1,5230.152 3.0 10.0 1.5
Cu = copper, Mo = molybdenum, Au = gold, Ag =silver, (%) = percent, ppm = parts per million, ppb = parts per billion
Range of the Metal Concentrations:
Style of Number of Cu Cu Mo Au Ag
Mineralization Samples (ppm) (%) (ppm) (ppb) (ppm)
Disseminated 47 73 to 20,200 0.007 to 2.20 0.5 to 1,0605 to 6960.4 to 65.4
Quartz Vein 141 80 to 103,8000.008 to 10.380.2 to 2,0805 to 8720.2 to 483
Fracture 135 13 to 30,000 0.001 to 3.00 0.5 to 282 5 to 4650.2 to 65.4
Cu = copper, Mo = molybdenum, Au = gold, Ag =silver, (%) = percent, ppm = parts per million, ppb = parts per billion
Analytical and Sampling Procedures:
Analytical results used in this news release represent selected rock chip samples of the three styles of mineralization from the Mineral Mountain project. The samples were collected to characterize the base metals and trace element geochemistry present in veins, other mineralized structures, and outcrops. The samples were picked up from site by Skyline Laboratories of Tucson, Arizona.
The samples were crushed to plus 75% -10 mesh, split and pulverized to plus 95% -150 mesh. Pulps were subjected to a multi-acid digest (HNO3, HF, and HClO4). Gold was analyzed on a 30-gram charge by fire assay (FA-01) with an atomic absorption finish. Skyline’s package code TE-5 was used to analyze the samples for the base and other trace elements. Metal concentration in samples exceeding the upper limit of detection were assayed for copper using (MEA) and silver (FA-04). Skyline has an ISO/IEC 17025/2005 accreditation.
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.
Euro Sun files request to start SEA at Rovina
Euro Sun Mining Inc. has filed a request to initiate the strategic environmental assessment (SEA) for the Rovina Valley project with the Environmental Protection Agency in Hunedoara county, Romania. The notice of filing was published in the Mesagerul Hunedorean as required under the legislation and will also be published again on April 8, 2021.
The contents of the public announcement made by Euro Sun’s 100-per-cent-owned subsidiary in Romania are translated below:
S.C. Samax Romania SRL with headquarters in Criscior, 146 Calea Zarandului, postal code 337200, Hunedoara county, announces the completion of the first version of PUZ — industrial zone for the investments, development of the Rovina mining project within the exploitation licence area and triggering of the screening phase for obtaining the environmental licence.
The first version of the plan can be consulted at the Hunedoara EPA headquarters, in Deva City, 25 Aurel Vlaicu St., postal code 330007, Hunedoara county, every day from Monday to Thursday from 8 a.m. to 4:30 p.m. and on Friday from 8 a.m. to 2:30 p.m., as well as on Hunedoara EPA’s website. The comments and suggestions shall be sent in writing to Hunedoara EPA’s headquarters, within 18 calendar days since this announcement appeared.
Scott Moore, Euro Sun’s chief executive officer, stated: “We are pleased to initiate the SEA process with the Hunedoara County Environmental Protection Agency. Our definitive feasibility study has outlined a generational asset that brings both the highest environmental stewardship with significant economic benefits directly to our local communities and to the county of Hunedoara as a whole. We look forward to building a stronger relationship with all of the authorities through this phase of the permit process.”
The SEA process builds on the environmental impact assessment (EIA) approved under the exploitation licence issued by the Romanian government on Nov. 9, 2018, augmented by 17 new or updated environmental studies on the project as required by Romanian or European regulations. These studies include such items as air quality, noise, traffic, and various flora and fauna baseline studies.
The SEA process will also involve obtaining the opinions or approvals of 14 administrative bodies. Representative agencies include the Army General Headquarters, Hunedoara County Police Inspectorate, Banat Electrical Supply Company, and local and county roads administrators among others.
Public consultations are required under the SEA process and the company intends to hold such as directed by the EPA of Hunedoara county in a timely manner but are expected to occur in the third quarter.
Nighthawk drills 32.7 m of three g/t Au at Indin
Nighthawk Gold Corp. has released the remaining results from its 2020 exploration program on the Colomac deposit and the Treasure Island zone within its 100-per-cent-owned Indin Lake gold property (930-square-kilometre land package), located in the Northwest Territories of Canada.
Assay results from the remaining drill holes completed at Colomac (10 holes for 6,433 metres) and Treasure Island (three holes for 1,186 metres) have been received and returned significant results at both locations.
Richard Roy, vice-president, exploration, commented: “We are pleased to report on the remaining 2020 drill results at Colomac and Treasure Island. Treasure Island encountered high-grade results, where hole T20-09 returned 207.18 grams per tonne gold over 5.5 metres, including a single assay of 2,260 g/t Au over 0.5 metre. Consistent higher grade at Treasure Island remains to be demonstrated by drilling. With these recent Treasure Island results now in hand, all results to date will be compiled, analyzed and modelled in order to establish its potential to add higher-grade mineralization to the global resource base.
“The Colomac results illustrate the potential for resource growth at depth; however, drilling in 2021 will focus on further delineation of near-surface mineralization in an effort to increase the in-pit resources. The potential at depth on Colomac remains very significant, but quality near-surface targets remain untested at Colomac and will be prioritized in 2021.”
Colomac:
Hole C20-07C was completed at zone 3.5 and returned 3.00 grams per tonne gold over 32.7 metres, supporting the continuity of the higher-grade mineralization previously obtained at depth.
Holes C20-14 and C20-17(17B) tested zone 2.5 at depth. Although no extensively wide intervals were obtained, hole C20-17, did return a high-grade interval of 12.36 g/t Au over 4.3 m (26.08 g/t Au uncut) including a 0.5 m sample assaying 218.00 g/t Au.
Holes C20-15(15B), C20-16, C20-18(18B) and C20-20 were drilled on zone 1.5 testing the depth extension of the mineralization. Significant intervals were obtained, particularly in holes C20-18B, which returned 1.67 g/t Au over 61 m (1.72 g/t Au uncut), and C20-20 returned 2.44 g/t Au over 30.25 m. These results demonstrate that zone 1.5 remains wide and well mineralized at depth, adding to the resource potential within this zone.
Hole C20-19 tested zone 2.0 and returned a wide intersection of 1.03 g/t Au over 64.1 m, including 2.88 g/t Au over 7.5 m. Drilling at zone 2.0 continues to encounter both extensive widths and higher-grade intervals within the mineralization.
Treasure Island:
The remaining three holes completed at Treasure Island (Main zone), returned significant higher-grade gold mineralization at depth, including:
Hole T20-07 returned 5.62 g/t Au over 3.3 m.
Hole T20-09 returned 4.65 g/t Au over 2.05 m and 207.18 g/t Au over 5.5 m (uncut), including a single assay result of 2,260 g/t Au over 0.5 m.
Hole T20-10 returned 37.59 g/t Au over 2.35 m (uncut) including a single sample of 0.5 m which assayed 80.75 g/t Au.
Note
Assay results for Colomac are cut at 50 g/t Au as per parameters identified within the 2021 mineral resource estimate. No cutting is applied to Treasure Island holes. Lengths are reported as core lengths. True widths vary depending on drill hole dip.
Richard Roy, PGeo, vice-president, exploration, of Nighthawk, who is the qualified person as defined by NI 43-101 for this project, has reviewed and approved of the technical disclosure contained in this news release.
Technical information
Nighthawk has implemented a quality control program to comply with best practices in the sampling and analysis of drill core. Drill core samples were transported in security-sealed bags for analyses at the ALS laboratory in Vancouver, B.C. ALS Global is an ISO/IEC (International Organization for Standardization/International Electrotechnical Commission) 17025-accredited laboratory. Pulp and metallics assaying for gold was conducted on the entire pulverized sample.
As part of its QA/QC program, Nighthawk inserts external gold standards (low to high grade) and blanks every 20 samples in addition to the standards, blanks and pulp duplicates inserted by ALS Global.
Almaden Minerals Ltd. has appointed Kevin O’Kane and Alfredo Phillips as independent non-executive members of the board of directors, effective immediately.
Kevin O’Kane is based in Vancouver and is a registered professional engineer with nearly 40 years of experience in the global mining industry. He has held executive positions with BHP in South America, including Project Director, Vice President of Health, Safety and Environment, and Asset President. Most recently, Mr. O’Kane held the position of Executive Vice-President and Chief Operating Officer for SSR Mining Inc. He holds the ESG Competent Boards Certificate and Global Competent Boards Designation (GCB.D), achieved in 2021. He is fluent in Spanish and brings a wealth of technical, operational and HSCE leadership combined with Latin American knowledge to Almaden’s Board. Kevin also serves on the Boards of SolGold Plc and NorthIsle Copper and Gold Inc.
Alfredo Phillips is a seasoned business executive in Mexican primary industries. He is currently Head of Government Affairs in Mexico for Arcelor Mittal, the world’s largest steel producer. Prior to taking this position in 2020, he had served in a similar capacity for Torex Gold for over six years. Mr. Phillips is past President of the Mining Task Force of the Canadian Chamber of Commerce in Mexico, continues to serve on the Board of the Chamber, and is founding Chairman of the Guerrero Mining Cluster since 2016. He also serves on the Board of Directors of the Latin American and Caribbean Council on Renewable Energy (LAC-CORE).
Mr. Phillips has had an extensive career in the public, private, diplomatic, and academic fields. He has held numerous positions in the Mexican Government ranging from Deputy General Director for Technology at the National Council for Science and Technology, to Director General for Planning, Programming, and the Budget at the Ministry of Education, to Head of the Investment Promotion Office at the Ministry of Energy. His last position in the Mexican Government was as Minister for Economic Affairs at the Mexican Embassy in Washington DC. He has also worked for Siemens Mesoamerica as head of government affairs. Mr. Phillips also participates in academic undertakings and is currently founding Board Member of the Global Sustainability Institute at the Monterrey Technology Institute jointly with Arizona State University, in addition to being a professor of Negotiation Theory at the Executive Education School at the IberoAmerican University in Mexico City.
Alfredo received a B.Sc. in Actuarial Mathematics from Anahuac University in Mexico City and a Master’s in Public Administration from the Kennedy School of Government at Harvard University. He is fluent in English, Spanish, and French.
J. Duane Poliquin, Chairman of Almaden, stated “On behalf of the Board, we are very pleased to welcome these two distinguished people to Almaden. Alfredo has had a lot of success in developing and promoting successful, sustainable businesses in Mexico and we look forward to his contributions to our business strategy moving forward. Kevin adds strong technical, operational, social, and environmental expertise gained through many years of experience at Tier 1 mining operations. The appointment of Alfredo and Kevin underscores the great potential of the Ixtaca Project.”
Alfredo Phillips stated, “It is a great pleasure and a wonderful opportunity to join this distinguished group of seasoned mining professionals. Almaden offers a wonderful opportunity to be a part of a forward-thinking company that is facing the future with out of the box ESG policies that will hopefully be groundbreaking in nature and trailblazing in Mexico and the Americas building the mine of the future hand in hand with the communities and authorities.
Coincident with these appointments, John (Jack) McCleary and Gerald Carlson have elected to retire from the Board but have agreed to remain active with Almaden in an advisory capacity. Duane Poliquin, Chairman of Almaden, stated, “Both Jack and Gerry have been valued contributors to Almaden for many years. While we are losing them as valued members of the Board, we are grateful that they have agreed to remain available to the Company.”
Orca Gold Announces Closing of Non-Brokered Private Placement
VANCOUVER, BC, March 31, 2021 /CNW/ – Orca Gold Inc. (TSXV: ORG) (“Orca” or the “Company”) announces that the previously announced non-brokered private placement (see the Company’s news releases dated March 17 and March 23, 2021) (the “Offering“) has been over-subscribed and has closed on a total of 19,649,998 common shares for gross proceeds of approximately $10,807,500.
All common shares issued under the Offering will be subject to a hold period expiring on July 31, 2021, in accordance with applicable Canadian securities laws.
The proceeds of the Offering will primarily be used to fund ongoing operations at the Company’s 70%-owned Block 14 Gold Project in the Republic of the Sudan and for general working capital.
The common shares issued under the Offering have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”), or any state securities laws, and accordingly, may not be offered or sold within the United States except in compliance with the registration requirements of the U.S. Securities Act and applicable state securities requirements or pursuant to exemptions therefrom. This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the Corporation’s securities in the United States.
Commenting upon the successful financing, Richard Clark, CEO, said: “After nine years of working in the Republic of Sudan, delineating a resource with very strong economics and acquiring all the necessary permits for development, the Company is ready to proceed towards the construction of the Block 14 Gold Project. Today, the political environment in the Republic of Sudan is stabilizing at a rapid pace. With all sanctions removed, negative designations withdrawn, and sovereign immunity restored, the country is poised to be a go-to jurisdiction for many industries, not just mining. In particular, the Republic of Sudan’s recent clearing of financial arrears to the World Bank now opens the door to significant international financial assistance. For Orca, we are fortunate to have the support of the new Cabinet in advancing the Block 14 Gold Project and using it to set the stage for a commercial gold mining industry for the country. I would like to extend our sincere appreciation to Orca’s shareholders for their ongoing support and a warm welcome to new investors who see the great potential of Block 14 and the potential of the Republic of the Sudan. The Company will provide a more detailed corporate update regarding Orca’s plans and budget in the coming weeks. I very much look forward to providing more details of the Company’s financing and development opportunities and plans for the development of Block 14”.
On behalf of the Board of Directors,
“Richard P. Clark”
Richard P. Clark| CEO & Director | Orca Gold Inc. | 604.689.7842
Bonterra Expands Multiple Gold Mineralized Zones at Barry; Highlighted by 7.4 g/t over 14.7 metres, Including 20.6 g/t over 4.9 metres
Val-d’Or, Quebec–(Newsfile Corp. – March 31, 2021) – Bonterra Resources Inc. (TSXV: BTR) (OTCQX: BONXF) (FSE: 9BR2) (“Bonterra” or the “Company“) is pleased to announce an update on results from the ongoing drilling campaign at the Barry project. Recent drilling was designed to expand the Barry “H-Series” gold mineralized zones at depth (See Figures 1 and 2). The latest drilling results encompass 11 expansion diamond drill holes (4,794 metres (“m“)), including six drill holes that were deepened to test for potential extensions of “H-Series” subparallel zones. Drilling was highlighted by a wide zone of mineralization in drill hole MB-21-340 that intercepted 7.4 grams-per-tonne gold (“g/t Au“) over 14.7 m. The Company is currently drilling at a rate of approximately 10,000 m per month and plans a mineral resource estimate update for Q2/21 (the “2021Resource Update“), which is expected to incorporate approximately 130,000 m of new drilling information, including results presented today. In addition, work on the the Preliminary Economic Assessment (“PEA“) is ongoing and is expected to be completed in the fall of 2021 (See press release dated March 1, 2021).
Highlights:
7.4 g/t Au over 14.7 m and 1.4 g/t Au over 6.8 m in hole MB-21-340
3.8 g/t Au over 6.8 m and 2.1 g/t Au over 6.6 m in hole MB-21-339
3.5 g/t Au over 6.3 m in hole MB-20-255
3.9 g/t Au over 2.7 m in hole MB-20-278
Pascal Hamelin, CEO commented: “The ongoing drilling results at Barry are very encouraging and support our view that tremendous exploration potential remains within the camp near existing infrastructure. Several historical intercepts suggest the potential for higher-grade material to the west and drill hole MB-21-340 is no exception. There are currently two diamond drill rigs operating at Barry. Importantly, having several parallel gold-bearing structures allows for drilling to pierce several zones with each hole. The Company continues to test extensions of the deposits at all three of the Company’s flagship assets in preparation of the upcoming resource update expected in Q2/21.”
Figure 1 – Barry Project – Drill Hole Location Map
The Company has drilled 70 holes and deepened six existing holes representing a total of 28,658 m at Barry since July 23, 2020. Results from eight drill holes have been received since the press release dated March 1, 2021. Results from the remaining three holes are still pending (See Table 1 and Figures 1 and 2).
The Barry gold deposit is characterized as multiple sub-parallel, sub-vertical, shear zones and a second set of subparallel “H-Series” veins dipping 50 to 60 degrees to the south hosted within intermediate to mafic volcanics and tuffs with local felsic intrusions. Gold mineralization consists of disseminated sulfides within the shear zones and the veins with local visible gold. The Barry deposit has been delineated over 1.4 kilometres along strike and 600 m vertical and remains open for expansion.
Due to an accumulated backlog at the Company’s laboratory, assaying priority has been assigned to drill hole samples directly affected within the 2021 Resource Update. Pending assays of samples awaiting analysis from drilling beyond the project models not included in the 2021 Resource Update are to be processed by Activation Laboratories Ltd. (“Actlabs“), based in northwestern Quebec.
Table 1: Significant mineralized intersections of recent drilling on the Barry deposit
Hole ID
From (m)
To (m)
Length (m)
Grade (g/t Au)
Zone
MB-18-189
Results pending
MB-18-191
Results pending
MB-18-198
523.3
524.3
1.0
1.9
H15
527.9
530.1
2.2
0.9
H15
MB-20-246
Results pending
MB-20-255
624.8
631.1
6.3
3.5
H15
including
630.4
631.1
0.7
15.2
MB-20-278
543.7
546.5
2.8
3.9
H15
including
545.2
545.7
0.5
17.3
MB-21-336
193.2
194.7
1.5
0.7
215.2
215.7
0.5
0.9
233.8
234.3
0.5
1.3
461.2
463.2
2.0
2.0
1000
493.3
494.3
1.0
0.8
MB-21-337
525.3
527.3
2.0
0.5
568.0
570.2
2.2
2.4
MB-21-338
570.8
578.4
7.6
0.8
653.2
655.6
2.4
2.2
H12
700.7
706.6
5.9
2.1
H13
including
703.7
704.7
1.0
7.4
MB-21-339
580.9
585.7
4.8
0.6
H5
656.8
663.6
6.8
3.8
H12
including
656.8
658.5
1.7
14.6
849.5
856.1
6.6
2.1
H15
MB-21-340
346.4
350.6
4.2
0.6
431.3
446.0
14.7
7.4
H8
including
434.1
439.0
4.9
20.6
497.8
502.5
4.7
0.6
509.7
514.4
4.7
1.0
H13
615.8
622.7
6.9
1.4
H15
Notes: 1) The meterage represents the length of the drilled lengths. 2) True widths are estimated to be greater than 85% of the drill intersection length. 3) The mineralized intervals shown above use a 0.5 g/t Au cut-off grade.
Six existing drill holes (MB-18-189, MB-18-191, MB-18-198, MB-20-246, MB-20-255 and MB-20-278) were deepened and five new holes (MB-21-336 to 340) targeted the expansion of key areas confirming mineral continuity within the inferred resource from the 2019 Barry mineral resource estimate. Drilling results confirm the expansion of multiple “H-Series” subparallel zones open at depth in the central and west areas of the Barry deposit.
The following holes have returned significant grades in this sector; MB-20-255: 3.5 g/t Au over 6.3 m in the H15 Zone; MB-20-278: 3.9 g/t Au over 2.7 m in the H15 Zone; MB-21-339: 3.8 g/t Au over 6.8 m in the H12 zone and 2.1 g/t Au over 6.6 m in the H15 zone; MB-21-340: 7.4 g/t Au over 14.7 m in the H8 Zone and 1.4 g/t Au over 6.8 m in the H15 Zone. Hole MB-21-336 intersected the 1000 zone returning 2.0 g/t Au over 2.0 m confirming that mineralization along this Barry zone remains open towards the east and at depth (See Table 1 and Figures 1 and 2).
American Manganese Produces Cathode Precursor Material Directly from Recycled Lithium-ion Battery NCA Cathode Waste
SURREY, BC / ACCESSWIRE / March 31, 2021 / American Manganese Inc. (TSXV:AMY)(OTCQB:AMYZF)(FSE:2AM) (“AMY” or the “Company“), with its advanced and patented lithium-ion battery cathode recycling process (RecycLiCo™) and Kemetco Research Inc. (“Kemetco”), a leading metallurgical laboratory and R&D contractor to American Manganese, are pleased to announce the production of cathode precursor material directly from recycled Lithium Nickel Cobalt Aluminum Oxide (NCA) cathode waste. The NCA cathode chemistry is produced by some of the largest battery manufacturers and commonly used in modern electric vehicle batteries.
The cathode precursor material, produced by the Company’s pilot plant project and specialized cathode reactor, was analyzed with scanning electron microscopy to verify the spherical morphology requested by a tier-one battery manufacturer. American Manganese will be producing a range of precursor samples to be evaluated in collaboration with the tier-one battery manufacturer.
Scanning Electron Microscopy Scan of Cathode Precursor from Recycled NCA Cathode Waste
“American Manganese is advancing its RecycLiCo™ process with the aim to produce the highest value final product, the cathode precursor, with the fewest number of steps,” commented Larry Reaugh, President and CEO of American Manganese. “We believe our business strategy and patented technology provide the highest economic benefit and the most sustainable manner for recycling critical battery minerals from cathode waste.”
The Government of Canada has recently developed a list of 31 critical minerals for the sustainable economic success of Canada, which include battery minerals like lithium, cobalt, manganese, nickel, and aluminum. Battery technology will be essential for the global economy and Canada is poised to become a global leader in mining, battery manufacturing, electric vehicle manufacturing, and battery recycling. American Manganese believes its recycling patents and cathode precursor production know-how will be a valuable contribution to Canada’s thriving battery supply chain. The National Research Council of Canada Industrial Research Assistance Program (NRC IRAP) has provided support and funding to American Manganese for its technical feasibility project, formally known as Synthesis of Cathode Material Precursors from Recycled Battery Scrap.
Aquila Resources Announces Fourth Quarter and Year End 2020 Financial Results
Aquila Resources Inc. (TSX: AQA, OTCQB: AQARF) (“Aquila” or the “Company”) announces the filing of its financial results for the fourth quarter and year ended December 31, 2020. All amounts, unless indicated, are reported in US dollars.
“In 2020, Aquila significantly advanced our Back Forty Project in Michigan, highlighted by the Preliminary Economic Assessment the Company announced in August that showcased Back Forty’s potential as a near-term producer in the United States,” said Guy Le Bel, President & CEO of Aquila. “Despite the ongoing COVID-19 pandemic, Aquila was able to expand its team in Michigan and resolved all federal challenges to the Back Forty Project. Our current focus is securing additional capital and evaluating various strategic alternatives to maximize shareholder value, advancing the optimized Feasibility Study, and securing the remaining State permits required to build and operate Back Forty.”
ANNUAL HIGHLIGHTS
In August 2020, the Company announced the results of a positive Preliminary Economic Assessment (“PEA”) for the Company’s 100% owned Back Forty Project. Key highlights include:
After-tax NPV at a 6% discount rate of $176.3 million (approximately C$235 million) with 26.1% IRR at long term consensus metal prices including $1,485 per ounce gold.
After-tax NPV of $316.3 million at a 6% discount rate (approximately C$422 million) with 37.8% IRR at spot prices as of August 4, 2020 including $1,998 per ounce gold with gold generating 52% of revenue.
Includes the known underground mineral resources at Back Forty, increasing the life of mine to 12 full years.
Life of mine production of over 1.5 million gold equivalent ounces with production in Year 1 of 206,000 gold equivalent ounces.
Pre-production capital costs of $250.4 million benefitting from significant nearby infrastructure.
Potential value enhancement through additional exploration as the deposit remains open at depth.
In January 2020, in a unanimous decision, the United States Court of Appeals for the Seventh Circuit (the “Appeals Court”) upheld the dismissal of a lawsuit related to Aquila’s Wetlands Permit brought by the Menominee Indian Tribe of Wisconsin (the “Tribe”) in the State of Wisconsin. In May 2020, in a unanimous decision, the Appeals Court denied an earlier request by the Tribe for a rehearing of its appeal. This marks the end of the Tribe’s federal challenge to the Back Forty Project.
In August 2020, the Company added two key hires to its team:
The Company hired Mike Foley as Director of Environment & Infrastructure. Mr. Foley has 32 years of experience as a Civil Engineer in the Upper Peninsula of Michigan and northern Wisconsin.
The Company hired Bob Mahin as Director of Exploration. Mr. Mahin is a senior level geologist with thirty years of progressive experience guiding mineral exploration programs. Since 1990, Mr. Mahin has been based in Michigan’s Upper Peninsula and has gained progressive experience from fieldwork to managing multi-million-dollar exploration programs in the pursuit of gold and base metals.
In September 2020, the Company held its 2020 annual meeting of shareholders at which the six nominees listed in the management information circular were elected as directors of Aquila. The Company welcomed a new director, Mr. Paul Johnson, to the Board. Mr. Johnson is a mining engineer with 40 years of experience in the mining industry. Prior experience includes serving as Open Pit Project Evaluation Manager for Osisko Gold Royalties and being part of the initial development team for Osisko Mining Corporation’s Canadian Malartic project.
In June 2020, the Company announced that it entered into definitive agreements to amend certain terms of its gold and silver purchase agreements with a subsidiary of Osisko Gold Royalties Ltd (“Osisko”) in order to accelerate Aquila’s access to a portion of the outstanding funding under the gold purchase agreement and to provide additional flexibility.
In August 2020, the Company achieved DTC eligibility for its common shares from The Depository Trust Company (“DTC”). The DTC is a subsidiary of the Depository Trust & Clearing Corp. and manages the electronic clearing and settlement for the vast majority of publicly traded equities and other securities in the United States. This electronic method of clearing securities accelerates the settlement process for investors and brokers, enabling the stock to be traded over a much wider selection of brokerage firms by coming into compliance with their requirements. The Company’s common shares continue to be listed for trading in the United States on the OTCQB market under the symbol AQARF.
FOURTH QUARTER HIGHLIGHTS
As at December 31, 2020, Aquila had cash of $1.8 million and negative working capital of $0.8 million. This compared to cash of $4.0 million and working capital of $1.6 million at December 31, 2019. The decrease in working capital is primarily due to permitting and legal activities at its Back Forty Project. The Company is focused on securing financing in the near-term.
In December 2020, the Ingham County Circuit Court in the State of Michigan upheld the final decision of the Michigan Department of Environment, Great Lakes, and Energy (“EGLE”) to issue the Back Forty Mining Permit after a lengthy contested case hearing initiated by two petitioners. Subsequent to its issuance by EGLE, the Mining Permit was upheld by the Judge and an environmental review panel made up of technical experts from various fields.
POST QUARTER HIGHLIGHTS
In February 2021, a resolution supporting the mining industry in Michigan was introduced into the Michigan Senate. The resolution has been reported out of committee without changes and is expected to be adopted by the Senate in the current legislative session.
On February 1, 2021, the Company appointed Guy Le Bel as President & CEO of Aquila. Barry Hildred transitioned to the role of Executive Chair of the Board of Directors and Ted Munden, outgoing Chair of the Board of Directors, was appointed to the position of Lead Director. Mr. Le Bel brings more than 35 years of experience in business and project development, strategic and financial planning, and permitting in the Americas to Aquila. Most recently, he was CEO and CFO of Golden Queen Mining Ltd. until its acquisition in 2020 by Falco Resources Ltd. Mr. Le Bel holds an MBA Finance from Ecole des Hautes Études Commerciales (Montreal), a Master Applied Sciences, Mining Engineering from the University of British Columbia and a B.Sc. Mining Engineering from Université Laval. He is a Professional Engineer (O.I.Q.).
In March 2021, Aquila announced that it entered into definitive agreements (the “2021 Stream Agreement Amendments”) with Osisko to amend certain terms of the Gold Stream and Silver Stream in order to provide additional flexibility. Under the terms of the 2021 Stream Agreement Amendments, Osisko agreed to adjust certain milestone dates under the Gold Stream and the Silver Stream to align the streams with the current project development timeline.
In March 2021, Aquila engaged Osisko Technical Services (“OTS”) to lead an optimized feasibility study (the “Feasibility Study”) for the Back Forty Project. OTS’ technical team has a proven track record of project execution. Aquila will leverage the team’s combined engineering, permitting, construction and operating expertise to unlock value and advance the Back Forty Project through its next phase of development.
In January 2021, an administrative law judge for the Michigan Office of Administrative Hearings and Rules (the “Judge”) issued a decision denying the prior issuance of the Back Forty Wetlands Permit. In his decision, the Judge determined that Aquila’s groundwater model does not provide a reliable identification of wetland impacts and therefore found the permit application to be administratively incomplete. The Judge also determined that Aquila did not provide a complete assessment of potential alternatives to its proposed plan. Aquila has appealed the Judge’s decision to the EGLE environmental review panel (the “Panel”). The Panel is expected to render a decision in the second half of 2021. The Panel has the authority to adopt, remand, modify, or reverse, in whole or in part, the Judge’s decision. The decision of the Panel will become the final decision of EGLE.
In January 2021, a Michigan Public Service Commission Administrative Law Judge rejected Alger Delta Power Cooperative’s motion which objected to Upper Michigan Energy Resources Corporation’s (UMERC) filing of its Notice of Intent to Serve the Back Forty Mine. The Company believes this decision paves the way for Aquila to choose whichever electrical service provider it deems best for the Back Forty Project.
On March 24, 2021, the Company announced that it filed a preliminary short form prospectus in connection with a marketed equity offering (the “Offering”). On March 25, 2021, the Company announced that, in light of current market conditions, it determined not to proceed with the Offering. Aquila is working with its advisors to consider and evaluate various strategic alternatives to maximize shareholder value, including looking to realize value from its Wisconsin properties.
OUTLOOK
The Company will continue to advance its Back Forty Project in Michigan where the main objectives are completing the optimized Feasibility Study and securing the remaining permits required for construction and operations. The Feasibility Study will incorporate both the open pit and underground mine plans. Following the completion of the Feasibility Study, the Company will submit revised permit applications to EGLE to align the permits with the Feasibility Study design. EGLE previously issued the Company the four key permits required to build and operate the Back Forty Project, being a Mining Permit, Air Permit, NPDES Permit, and a Wetlands Permit (which was subsequently denied by the Judge in January 2021), based on the development plan contemplated in the Company’s open pit only feasibility study filed on SEDAR on September 7, 2018. The Company believes that permit applications that reflect the Feasibility Study design will demonstrate reduced environmental impact and a longer mine life for the benefit of all stakeholders.
Aquila will continue to advance its appeal of the Judge’s decision to deny the issuance of the Back Forty Wetlands Permit. Through its appeal, at a minimum, Aquila is seeking to clarify certain aspects of the decision to facilitate further permitting efforts for the Back Forty Project. In parallel with its appeal, Aquila will work closely with EGLE to reach consensus on the groundwater model.
As the Company works through the Wetlands Permit appeal and continues its collaboration with EGLE in support of a revised Wetlands Permit application, if required, the Company will conduct technical studies to support the optimized Feasibility Study that will seek to evaluate areas of opportunity. These include opportunities to:
Simplify the process flowsheet and increase gold recoveries in light of improved metal prices; and
Optimize the mine plan to enhance economics, reduce environmental impact, and improve the Project configuration and strip ratio.
The Company will continue its efforts to secure additional financing and, in parallel, will evaluate various strategic alternatives to maximize shareholder value.
Steppe Gold Ltd. has released its financial results for the fourth quarter and year ended Dec. 31, 2020.
The full version of the condensed interim consolidated financial statements, and management’s discussion and analysis can be viewed on the company’s website or under the company’s profile on SEDAR. Amounts are expressed in U.S. dollars unless otherwise noted.
Steppe Gold president and chief executive officer, Bataa Tumur-Ochir, commented, “We are very pleased to report a strong start to production at the ATO gold mine with operating cash flow from mine operations in 2020 of $32.6-million, on revenue of $52.1-million, in an approximate nine months of production.
“Most importantly we are proud to report a zero accident safety record at the project, and our exemplary environmental record has been recognized with a 93-per-cent result on the latest environment audit.
“Cash costs remain at market-low levels at $607 per ounce sold for the year and this allowed us to build up a solid cash balance, ending the year at $32.6-million. Discussions with Mongolian and international lenders are progressing well and this supports our optimistic outlook for a timely debt financing for the phase 2 expansion now under way.
“We have now mined approximately 1.7 million tonnes of ore and 1.25 million tonnes stacked on the leach pad. With a new fixed crusher in place this summer, we are planning a record year for stacking in 2021. We have paused production in the first quarter with extreme cold weather conditions and we expect to resume production shortly. We have seen some bottleneck in supply of critical reagents and this will impact second quarter production as we conserve supplies for the important summer months. Hopefully this issue is temporary and will be resolved shortly.
“With the ATO resource now at 2.45 million ounces gold equivalent, and procurement of long lead capital items under way, we are focused on increasing our production run rate from the oxide phase through 2021 and 2022 and executing the phase 2 expansion which has already begun.”
Year ended Dec. 31, 2020, highlights (all figures in thousands of U.S. dollars unless stated)
Revenue for the year ended Dec. 31, 2020, was $52,097 on sales of 31,733 gold ounces and 13,710 silver ounces with average realized prices per ounce of $1,822 and $20 respectively;
Operating income from mine operations, before depreciation and depletion, was $32,551;
Consolidated group adjusted earnings before interest, taxes, depreciation and amortization for the year were $24,399;
Year-end cash, restricted cash and savings accounts balance was $32,605; bank debt is $10,610;
Cash costs for the year ended Dec. 31, 2020, were $607 per ounce sold;
All-in sustaining cost (AISC), before expensed exploration, for the year ended Dec. 31, 2020, was $839 per ounce sold;
During the year ended Dec. 31, 2020, 1,138,209 tonnes of ore were mined and 699,204 tonnes of ore stacked with an average gold grade of 2.03 g/t and an average silver grade of 8.88 g/t;
The company expects to pay minimal income tax in respect of the 2020 financial year due to COVID-19 pandemic related tax exemptions;
The company announced a resource update on Feb. 24, 2021, for the ATO gold mine. This update shows a doubling of the resource to 2.45 million ounces gold equivalent and now supports a planned production profile of approximately 150,000 gold equivalent ounces per year and an estimated 10-year plus mine life;
Work is well advanced on the Bankable feasibility study for the phase 2 expansion of the ATO gold mine. Incorporating the recent resource update and a detailed series of new metallurgical work, the BFS is due for release in summer 2021;
The company completed an active period of drilling at ATO and Mungu in 2020, with drilling continuing into early December, 2020. The focus was on extension and infill drilling and contributed to the resource upgrades on the existing ATO deposits and the maiden resource on the Mungu discovery.
Fourth quarter highlights (all figures in thousands of U.S. dollars unless stated)
Revenue for the quarter was $13,217 on sales of 7,923 gold ounces and 3,429 silver ounces with average realized prices per ounce of $1,882 and $23 respectively;
Operating income from mine operations before depreciation and depletion was $8,349;
Consolidated group adjusted EBITDA for the quarter was $5,553;
Cash costs for the quarter were $604 per ounce of gold sold;
All-in sustaining cost, before expensed exploration, for the quarter was $902 per ounce sold;
During the quarter, 291,455 tonnes of ore were mined and 206,703 tonnes of ore were stacked on the leach pad with an average gold grade of 2.26 g/t and an average silver grade of 9.22 g/t.
Details of non-IFRS performance measures can be found in the company’s management’s discussion and analysis.
Operational and financial summary
The ATO gold mine is the sole operating mining asset of the company. Prior period comparables have been included where appropriate in relation to commercial production beginning in 2020.
Outlook
The company has continued to mine and stack throughout the winter months at planned rates. It now has approximately 1.25 million tonnes of ore stacked on the leach pad.
The company paused leaching and gold production in the first quarter of 2021 as cold weather made leaching conditions less favourable. This cold weather disruption will be remedied for the 2021/22 winter season with the installation of a boiler plant to heat process water nearing completion. The company also wanted to conserve key chemicals and reagents for the coming warmer months given the COVID-19-related supply constraints. The company plans to resume leaching and production in April, 2021.
It is targeting annual production in 2021 and 2022 of between 50,000 to 60,000 ounces and then a transition to the fresh rock ores in 2023. Production forecasts for 2021 are dependent on a restart of leaching in April, 2021, and no further delays on procurement due to COVID-19.
The company is now stacking ore on cell 3 of the leach pad. Stacking of the first level of the leach pad (cells 1 to 5) will continue through 2021. Completion of the boiler house, used to warm the barren solution, is planned for summer 2021.
In March, 2021, the company purchased a new crusher through a loan from Capitron Bank. The new crusher will have a crushing capacity of 1,000 tonnes per hour, more than three times the current crusher, and it will fully support planned mining rates for the fresh rock phase where the company has estimated throughput rates of two million to 2.5 million tonnes per annum. Construction of foundations and installation of the new crusher will start in early April and it is scheduled to be operational by July, 2021.
In conjunction with the start of procurement of long lead items, the company continues discussions with Mongolian and international lenders on a multitranche project debt facility to finance the phase 2 expansion, expected to include a grinding circuit, a leach/CIP plant and a flotation circuit. Metallurgical testing is progressing well with encouraging results and the bankable feasibility study is on track for completion in summer 2021.
DRA Global has been retained for the BFS and Base Metallurgical Laboratories has been retained to complete related metallurgical test work. The BFS is based on the updated resource announced in late February. A full 43-101 report will be filed shortly.
An upgraded power solution will be required for the fresh rock phase and a power study was completed in December, 2020, with recommendations now being reviewed. The plan is to use a diesel genset solution initially for the fresh rock expansion as the company executes on grid-based power options.
Kootenay signs Two Times Fred option deal with Centerra
Kootenay Silver Inc. has signed an option agreement with a wholly owned subsidiary of Centerra Gold Inc., whereby Centerra is granted an option to earn a 70-per-cent interest in the Two Times Fred property located in the Nechako plateau of central British Columbia.
A total of $6-million in exploration expenditures and $500,000 in cash payments must be incurred and made over a four-year period for Centerra to earn a 70-per-cent interest. The first year requires a work expenditure of $1-million with a minimum commitment of $650,000. Current plans for this year’s work include up to 1,000 metres of trenching and 20 drill holes. Upon the fulfilment of these conditions, the two companies will enter a standard joint venture agreement with Kootenay retaining a 30-per-cent interest, and financing of further work will be done on a pro rata basis amongst the joint venture partners.
James McDonald, president and chief executive officer of Kootenay Silver, states: “We are very pleased to have signed an agreement with major gold producer Centerra Gold Inc. We look forward to benefiting from Centerra’s expertise and consider their participation via the option agreement a reflection of our belief that Two Times Fred has the potential to host a gold deposit of significant size.”
Two Times Fred
The Two Times Fred property is host to a large classic low-sulphidation epithermal gold vein system. It is a grassroots discovery made by the Kootenay Silver team. Over the past several years Kootenay has advanced the project with limited drilling, mapping, sampling and geophysical surveys. The project comprises numerous northeast-trending veins over a 1.5-by-three-kilometre trend. Select rock chip sampling at surface has returned assays as high as 12.8 grams per tonne gold and 194 grams per tonne silver. Limited drilling (2,628 metres over 13 drill holes) shows the main identified veins occur as classic vein and vein breccia zones from a few metres to 40 metres wide. Best drill results to date include 7.6 metres of 1.69 g/t gold and 29 g/t silver.
Eloro drills 257.5 m of 129.6 g/t AgEq at Iska Iska
Eloro Resources Ltd. has released additional results from its diamond drilling program at its optioned Iska Iska silver-polymetallic project in the Potosi department, southern Bolivia. To date, through its Bolivian subsidiary, Minera Tupiza SRL, Eloro has completed 20 holes totalling 5,573 metres from both underground (12) and surface drill holes (eight). Results from the first five underground holes were reported on Nov. 18, 2020. This release reports results for 10 additional holes. Due to the polymetallic nature of the deposit, silver equivalent (AgEq) values have been included for comparative purposes.
On Nov. 24, 2020, Eloro announced the discovery of the Santa Barbara breccia pipe (SBBP). Drill hole DHK-14, drilled at minus 10 degrees to the southwest of Huayra Kasa workings from drill bay No. 3, intersected almost 180 m of silicified and mineralized breccia in this pipe, but due to drill limitations only penetrated approximately 50 per cent of its full width. To date, six additional holes have since been completed to test the SBBP, three more from underground and three from surface drilled radially from the centre of the pipe. As of this news release, results have been received for the first three underground holes, including the original discovery hole, which are presented in the associated table. The relative percentage of total metal equivalency is also given for each element.
Highlights are as follows:
129.60 grams per tonne AgEq over 257.5 metres (29.53 g/t silver, 0.078 g/t gold, 1.45 per cent zinc, 0.59 per cent lead, 0.080 per cent copper, 0.056 per cent tin, 0.0022 per cent indium, 0.0064 per cent bismuth and 0.0083 per cent cadmium) from 0.0 m to 257.5 m in hole DHK-15, the deepest of the three holes reported within the SBBP;
79.00 g/t AgEq over 121.33 m (21.77 g/t Ag, 0.034 g/t Au, 0.35 per cent Zn, 0.23 per cent Pb, 0.18 per cent Cu, 0.056 per cent Sn, 0.0011 per cent In, 0.004 per cent Bi and 0.0055 per cent Cd) from 0.0 m to 121.33 m in hole DHK-14 within the SBBP;
74.16 g/t AgEq over 40.88 m (33.43 g/t Ag, 0.032 g/t Au, 0.04 per cent Zn, 0.33 per cent Pb, 0.13 per cent Cu, 0.045 per cent Sn, 0.0010 per cent In and 0.0012 per cent Bi) from 30.40 m to 71.28 m in hole DHK-13, which is within the approximately 100 m wide mineralized envelope that surrounds the breccia pipe.
While assay results are pending, the first three inclined radial surface holes testing deeper parts of SBBP intersected significant mineralized breccia as follows:
Hole DSB-01 drilled at minus 45 degrees to the south intersected 195 m of mineralized breccia in the oxide zone, followed by 63 m of sandstone and dacite before intersecting 83 m of mineralized breccia in the Central breccia pipe (CBP).
Hole DSB-02 drilled at minus 60 degrees south intersected 216 m of mineralized breccia in SBBP followed by a sequence of mineralized sandstone and dacite before intersecting the CBP at 300 m, which also proved to be mineralized. In the CBP, this hole intersected a continuous sequence of mineralized breccia with porphyritic fragments for 332 m to the end of the hole at 632 m where it was stopped due to drilling issues. The last 10 metres in this hole contained a five m long intersection of massive sulphides, therefore the system is considered open at depth.
Drill hole DSB-03 drilled at minus 60 degrees east from the same set-up intersected 430 m of mineralized breccia in SSBP including 50 m of massive sulphide from 302 m to 352 m. This hole intersected an additional 85 m of dacite to 515 m in the mineralized envelope around SBBP.
Dr. Bill Pearson, PGeo, chief technical adviser for Eloro, commented: “The scale of the new breccia pipes discovered and the wide range of metals at Iska Iska is phenomenal. Drilling has confirmed a 400 m wide diameter of the Santa Barbara breccia pipe with a further 100 m mineralized envelope around the pipe for a total effective mineralized diameter of 600 m as shown in [an image on the company’s website]. The adjacent Central breccia pipe to the south is even bigger with a surface dimension of 400 m by 700 m; hole DHK-02 intersected mineralized breccia in the CBP to a depth of 475 m below surface where it is completely open. It appears likely that the Santa Barbara and Central breccia pipes may merge at depth. The widespread tin mineralization suggests that we are getting closer to the magnetic source. Deeper holes are planned in both the SBBP and CBP to further confirm the full extent of the pipes and to test for mineralization at depth.”
Dr. Quinton Hennigh, PGeo, senior technical adviser for Eloro, said: “Hole DHK-15, the deepest hole in SBBP with assays back, gives us our first picture of the true potential of the Iska Iska system. A whole suite of metals including Ag, Zn, Pb, Cu, Sn, In, Bi and Cd are present, exactly the sort of assemblage one would like to see in a prolific Potosi-type deposit. In fact, the way this picture is unfolding, it appears we have an entirely preserved mineralizing system of this type with lots of room to host a major deposit. An early indication of large size comes from hole DSB-02, which tells us that both the large SBBP and even larger CBP appear to be strongly mineralized. In short, we have been able to confirm in a few short months of drilling that Iska Iska has the right metal assemblage, strong Ag-polymetallic grades and very large size.”
Dr. Osvaldo Arce, PGeo, general manager of Minera Tupiza and an expert on the geology of Bolivia, commented: “The mineralization at Iska Iska defines a massive epithermal-porphyry system hosted mainly in large magmatic-hydrothermal breccia pipes, along with Tertiary dacitic domes and Ordovician quartz sandstone sequences, being a new geological environment for polymetallic deposition in the southern Bolivian Andes. Regionally, in terms of metal contents Iska Iska is comparable with neighbouring world-class polymetallic systems including Cerro Rico de Potosi, San Vicente, Chorolque and Tatasi, all of which have similar geological environments, with the notable exception of the large and remarkable mineralized breccia pipes at Iska Iska.”
Note
True width of the mineralization is not known at the present time, but based on the current understanding of the relationship between drill orientation/inclination and the mineralization within the breccia pipes and the host rocks such as sandstones and dacites, it is estimated that true width ranges between 70 per cent and 90 per cent of the downhole interval length but this will be confirmed by further drilling.
Huayra Kasa breccia pipe and mine area
An additional two underground holes, DHK-06 and DHK-07, drilled due west at minus 10 and minus 45 degrees, respectively, were completed from drill bay No. 1 to test under the Huayra Kasa workings. Hole DHK-06 intersected 78.51 g/t AgEq over 41.40 m from 160.0 m to the end of the hole at 201.40 m; this intersection is the outer edge of the mineralized envelope around the SBBP. Hole DHK-07 intersected 127.64 g/t AgEq over 8.15 m from 30.87 m to 39.02 m. This intersection, which contained 1.42 g/t Au, is likely the downdip extension of the Au-Bi zone identified in the eastern workings (see press release dated Nov. 18, 2020).
A surface drill rig was brought in to facilitate further testing of the Huayra Kasa breccia pipe (HKBP) just east of the Huayra Kasa mine workings, the discovery of which was reported in the press release of Nov. 18, 2020. A total of five surface drill holes were completed to further test the HKBP and surrounding area including at depth.
Highlights are as follows:
50.87 g/t AgEq over 47.50 m from 57.89 m to 103.59 m in hole DHK-08. This intersection is on the west side contact zone of the HKBP;
44.99 g/t AgEq over 63.75 m from 239.25 m to 303.00 m in hole DHK-09 drilled due east from the HKBP. This intersection is within a dacitic dome approximately 170 m east of the HKBP;
Several high intersections obtained in hole DHK-11 drilled from the centre of HKBP to the south. Results included 476.68 g/t Ag over 1.81 m including 5.60 g/t Au from 60.85 m to 62.66 m and 572.55 g/t AgEq over 5.57 m including 6.90 g/t Au from 83.60 m to 89.17 m. These intersections likely represent the southern extension of the high-grade gold zone in the eastern part of the underground workings;
Hole DHK-12 drilled down the centre of the pipe to a depth of 385 m returned a number of intersections from 2.97 m to 17.57 m with grades ranging from 32 g/t AgEq to 88 g/t AgEq.
Dr. Arce commented: “The HKBP is located immediately east of the underground workings developed by Empresa Minera Villegas. It occurs along the contact between a Miocene dacitic dome, which has intruded Ordovician sandstones. It was discovered in the initial drilling on the property (see press release dated Nov. 18, 2020). The pipe has been outlined by eight diamond drill holes confirming that it is oval-shaped with a west-east dimension of 150 m, north-south dimension of 200 m and a southeasterly plunge. HKBP is considered to be phreatic in origin and was formed at shallow levels in the volcanic environment, therefore occurring in the upper levels of the hydrothermal system, where the physical conditions led to hydraulic fracturing and hydrothermal brecciation. Mineralization is predominantly Zn-Pb-Ag and rock clasts and matrices are sericitized in the central part of the breccia and argillized on the periphery.”
Note
True width of the mineralization is not known at the present time, but based on the current understanding of the relationship between drill orientation/inclination and the mineralization within the underground workings and the breccia pipe as well as host rocks such as sandstones and dacites, it is estimated that true width ranges between 70 per cent and 90 per cent of the downhole interval length but this will be confirmed by further drilling.
Qualified person
Dr. Arce, a qualified person in the context of National Instrument 43-101, has reviewed and approved the technical content of this news release. Dr. Pearson, who has more than 45 years of worldwide mining exploration experience including extensive work in South America, provides technical oversight to the program in consultation with Dr. Hennigh, independent technical adviser, Charley Murahwi, PGeo, FAusIMM, of Micon International Ltd. Drill samples are prepared in SGS Bolivia SA’s preparation facility in Oruro, Bolivia, with pulps sent to the main SGS laboratory in Lima, Peru, for analysis by fire assay for gold and silver as well as 31-element ICP (inductively coupled plasma). Eloro employs an industry-standard QA/QC program with standards, blanks and duplicates inserted into each batch of samples analyzed.
About Iska Iska
Iska Iska silver polymetallic project is a road-accessible, royalty-free property, wholly controlled by the title holder, Empresa Minera Villegas SRL, and is located 48 km north of Tupiza city, in the Sud Chichas province of the department of Potosi. The property can be classified as a silver polymetallic (Ag, Zn, Pb, Au, Cu, Bi, Sn and In) epithermal-porphyry complex. This is an important mineral deposit type in the prolific South mineral belt of Bolivia.
Silver polymetallic mineralization at Iska Iska occurs within a Miocene possibly collapsed/resurgent caldera that consists of granodioritic stocks and five dacitic domes, which are each about 500 m in diameter. These rocks intrude/extrude an intensely deformed sequence of Ordovician shales, siltstones and sandstones, which are partially covered by Miocene pyroclastic rocks. The silver polymetallic mineralization occurs mainly as veins, vein swarms, veinlets, stockworks, disseminations and in breccias associated with intense hydrothermal alteration. The Iska Iska dome complex has several major phases of igneous breccias, quartz porphyries, dikes and dacitic syn-kinematic flows.
On Nov. 18, 2020, Eloro announced the discovery of a significant breccia pipe with extensive silver polymetallic mineralization just east of the Huayra Kasa underground workings and a high-grade gold-bismuth zone in the underground workings. Diamond drilling intersected a number of extensive mineralized intersections within the major breccia pipe including 54.48 g/t Ag, 1.45 per cent zinc and 1.60 per cent lead over 16.39 m (140.91 g/t AgEq) within a broader interval of 122.74 m grading 14.29 g/t Ag, 0.81 per cent Zn and 0.41 per cent Pb (53.67 g/t AgEq) in hole DHK-04 (see press release dated Nov. 18, 2020).
The high-grade gold-bismuth zone outlined in channel samples in the underground working averaged 7.1 g/t Au and 0.2 per cent Bi (8.29 g/t AuEq) over 3.04 m width for strike length of 47 m. Hole DHK-05 on the strike extension of the high-grade Au-Bi zone intersected 6.51 g/t Au, 0.07 per cent Bi and 31.96 g/t Ag (7.68 g/t AuEq) over 11.85 m grading including 29.56 g/t Au, 0.26 per cent Bi and 63.69 g/t Ag (31.94 g/t AuEq) over 2.31 m in this high-grade zone.
Silver-polymetallic mineralization within the Iska Iska system occurs over a potential strike length of more than 2.5 km along major ring structures in the caldera complex. A synchrotron study of the underground channel samples (see press release dated June 25, 2020) concluded that the mineral cluster analysis identified four mineralogical domains that cover the entire sampling area, suggesting they are related and represent a single, large mineralizing system. Furthermore, the mineralogy of the domains is consistent with minerals identified in hand specimen and are likely related to a telescoped porphyry/epithermal style of mineralization.
About Eloro Resources Ltd.
Eloro is an exploration and mine development company with a portfolio of gold and base-metal properties in Bolivia, Peru and Quebec. Eloro has an option to acquire a 99-per-cent interest in the highly prospective Iska Iska property, which can be classified as a polymetallic epithermal-porphyry complex, a significant mineral deposit type in the Potosi department, in southern Bolivia. Eloro recently commissioned an NI 43-101 technical report on Iska Iska, which was completed by Micon International Ltd. and is available on Eloro’s website and under its filings on SEDAR. Iska Iska is a road-accessible, royalty-free property. Eloro also owns an 82-per-cent interest in the La Victoria gold/silver project, located in the North-Central mineral belt of Peru about 50 km south of Barrick’s Lagunas Norte gold mine and Pan American Silver’s La Arena gold mine. La Victoria consists of eight mining concessions and eight mining claims encompassing approximately 89 square kilometres. La Victoria has good infrastructure with access to road, water and electricity and is located at an altitude that ranges from 3,150 m to 4,400 m above sea level.
Evergold drills 88.62 m of 0.71 g/t Au at Golden Lion
Evergold Corp. has released the remaining results and has recapped the 2020 drill program on the Golden Lion property in Northern British Columbia. Broad intervals of gold-silver epithermal-style mineralization encompassing higher-grade intervals were intersected in stepouts to earlier reported holes. Inclusive of historical drilling by Newmont, the GL1 Main zone now exceeds 800 metres in strike length. The zone comprises epithermal-style mineralization exposed at surface and associated with a geophysical response that increases with depth below current drill intercepts, suggesting that potentially stronger mineralization, and higher grades, may lie not far below. Evergold is excited to drill this underlying geophysical response in the approaching field season, within a broader program to evaluate extensions along strike.
(New) 88.62 metres at 0.71 gram per tonne gold from 4.88 to 93.50 metres in hole GL-20-009:
Including 16.50 metres of 1.59 g/t Au from 45.00 to 61.50 metres;
Including 10.50 metres of 2.07 g/t Au from 48.00 to 58.50 metres;
(New) 73.5 metres of 0.44 g/t Au from 29.51 to 103.01 metres in hole GL-20-011;
53.21 metres at 0.75 g/t Au from 7.52 to 60.73 metres in hole GL-20-002 (1):
Including 19.00 metres of 1.61 g/t Au from 35.10 to 54.10 metres;
73.82 metres of 0.50 g/t Au from 5.38 to 79.20 metres in hole GL-20-003 (1):
Including 7.60 metres of 2.78 g/t Au from 55.40 to 63.00 metres;
61.70 metres of 0.76 g/t Au from 6.80 to 68.50 metres in hole GL-20-006 (1):
Including 17.50 metres of 1.51 g/t Au from 42.50 to 60.00 metres;
73.12 metres of 0.69 g/t Au from 4.88 to 78.00 metres in hole GL-20-008 (1):
Including 8.39 metres of 1.72 g/t Au from 27.70 to 36.09 metres.
(1) Previously released holes included for comparative purposes and to demonstrate the hole-to-hole consistency of results form the GL1 Main zone.
“The GL1 Main zone is wide, long, shallow and appears from the geophysics to run deep,” said Kevin Keough, president and chief executive officer. “The grades achieved in drilling to date, coupled with the near-surface position of the mineralization and moderate topography of the site, provide early indications of this zone being a potential bulk-tonnage candidate, possibly including a high-grade component. Moreover, the strengthening character of the combined chargeability and resistivity response with depth, along with hints from trace element geochemistry, suggest drilling to date has tested only the upper levels of the system, holding promise for better grades below. It will not take us long, nor many holes, to test this hypothesis, and we look forward to doing so in the coming field season.”
Discussion of drill results — GL1 Main zone holes
Drilling at the GL1 Main target indicates a broad, steeply dipping, northwest-southeast-trending, gold-silver, quartz-carbonate, low sulphidation epithermal vein system displaying relatively consistent grades and excellent continuity hole to hole. The gold- and silver-bearing system has been intersected in 17 historical (1984) Newmont drill holes, and in all nine Evergold holes from 2020 targeted directly on the GL1 Main trend. Modelling of the Evergold results coupled with the historical Newmont drilling indicates the true width of the GL1 Main zone exceeds 100 metres. From Newmont hole GL-84-21 in the northwest, to Newmont holes GL-84-16 and GL-84-17 in the southeast, the GL1 Main zone is presently interpreted to encompass more than 840 metres of strike length in two subparallel trends, which remain open to the northwest, southeast and to depth.
The intercepts reported today for drilling directly on the GL1 Main zone are from four holes (GL-20-009, 011, 012 and 013), drilled from two drill set-ups, as discussed below. All holes were relatively shallow angle holes, ranged between 64 and 209 metres in length, and were drilled at dips of between minus 45 and minus 65 degrees. Hole GL-20-016, a longer, steeper hole than most at 325 metres and minus 70 degrees, was collared somewhat off trend and drilled back toward GL1 Main from a third pad located well up-ridge to the southeast.
Hole GL-20-009 was drilled to a northeast azimuth (70 degrees) from the same pad as previously reported holes GL-20-006, 007 and 008 (all three holes drilled 40 degrees). Holes GL-20-011, 012 and 013 were also drilled to a northeast azimuth (40 degrees) from a second pad located 75 metres southeast of hole GL-20-009. Hole GL-20-016 was drilled to a southwest azimuth (255 degrees) from a pad located approximately 290 metres southeast of the pad or holes GL-20-011, 012 and 013, and 179 metres higher in elevation.
Notably, with the exception of hole GL-20-016, all holes drilled directly on the GL1 Main zone during the 2020 exploration season cased into mineralization at surface and all holes carried intermittent gold and silver values downhole well beyond the significant intercepts cited, and did not fully exit the GL1 Main zone at depth.
The broad and consistent gold grades yielded in the holes drilled on the GL1 Main zone to date are characterized by relatively low abundances (two to 10 veins per metre) of narrow (generally less than one centimetre) and sulphide-poor epithermal quartz-carbonate veins and vein breccias containing localized aggregates of galena and subordinate sphalerite and chalcopyrite. The highest-grade sections also contain rare semi-massive to massive quartz-carbonate sulphide veins and vein-breccias dominated by galena and lesser sphalerite. The best gold and silver grades are associated with silica, clay and pyrite (1 to 5 per cent) alteration, giving the wallrock a pinkish hue.
Discussion of drill results — reconnaissance holes
The geological fertility of the wider Golden Lion property beyond the GL1 Main zone proper was made apparent by several rounds of geochemical soil and rock sampling, and mapping, carried out by company personnel in 2018 and 2019. This work identified precious and base metal values in soil and in some cases in outcrop, which were deemed sufficiently compelling to warrant drill testing. These wider property anomalies were grouped into three broad target areas: GL1, comprising the GL1 Main zone and GL1 North Ridge prospects; GL2, located to the northeast of GL1 and comprising the GL2 skarn, GL2 Ridge East, BG and the EP prospects; and the GL3 target area, located southeast of GL2 and east of GL1.
During the 2020 program, the company conducted additional sampling and mapping of several of these prospects, and induced polarization surveys over all of them. However, due to time limitations, only three of the known prospects and one that emerged during the season, were tested with the drill: GL1 North Ridge (hole GL-20-004), the GL2 skarn (holes GL-20-005 and 014) and EP (hole GL-20-015) prospects, and the GL3 8300 prospect (hole GL-20-010). Of particular significance, a narrow intercept of chalcopyrite-bearing massive sulphide mineralization with strong copper-gold-silver values was returned from hole GL-20-014, along with a hint of similar potential in hole GL-20-005, located 200 metres northeast of GL-20-014. This mineralization is hosted by intrusive rocks and limestones, suggesting that good potential exists for porphyry- and skarn- or replacement-style mineralization on the GL2 target area.
Hole GL-20-001 was drilled due north from a pad located approximately 250 metres southwest of the GL1 Main trend. The purpose of this hole was to test below a strong east-west-trending precious metals soil geochemical anomaly. The anomaly was tested after an IP survey identified a high resistivity anomaly associated with the favourable geochemical trend. Although no significant gold or silver assays were returned, arsenic values accompanied by antimony were seen to be elevated in core well above background, something to be expected distal to an epithermal system. As shown on the two cross-sections on the company’s website, geophysical work at GL1 Main indicates potential system strengthening down to the west in the direction of hole GL-20-001, which, if true, may suggest the arsenic and antimony values seen in hole GL-20-001 do indeed reflect leakage from the system below.
GL1 North Ridge hole GL-20-004 was drilled in a northwesterly direction below a strong gold-in-soil anomaly developed by the company in 2019, including impressive highs in sequential sampling to 14.95 g/t Au along the spine of GL1 North Ridge, about 800 metres to the north of GL1 Main. This hole was sampled, but not assayed since other holes were considered higher priority. Hole 004 samples were left on site anticipating planned continuance into a 2020 phase 2 drill program, which did not happen due to delays in receiving assay results. Additional soil sampling carried out in September, 2020, over the target area confirmed the strong tenor of the gold anomaly and expanded it downslope to the north and south, making hole 004 of greater interest in this context. Review of logs and core photos indicates the presence of veining and fine sulphides. Samples will be submitted for assay in the 2021 field program.
GL2 target area hole GL-20-005 was drilled to a northwest azimuth to test a strong IP chargeability anomaly 200 metres along strike to the northeast of the outcropping GL2 skarn target, later tested by hole GL-20-015 (below). No significant gold or silver values were returned. The chargeability high was explained by disseminated, fine-grained pyrite, pyrrhotite and rare chalcopyrite hosted in intrusives and (similar to hole GL-20-014 below) brecciated limestone.
GL2 target area hole GL-20-014 was drilled to the northwest to test below the GL2 skarn target, which in previous outcrop sampling had returned high values of copper with associated strong silver and gold, including 13.5 per cent Cu, 122 g/t Ag and 0.146 g/t Au in GLAA18-036R. A one-metre intercept of chalcopyrite-rich sulphides hosted within brecciated limestone between 44.36 and 45.36 metres returned an encouraging 3.66 g/t Au, 33.89 g/t Ag and 3.34 per cent Cu.
GL2 EP zone hole GL-20-015 was drilled to the south/southwest to test below high-grade porphyry and epithermal-style samples collected from outcrop, including sample No. GLVB18-031R, which assayed 3,180 g/t Ag and 18.4 g/t Au, and sample GLAA18-026R, which assayed 2.1 per cent Cu, 10.7 g/t Ag and 0.70 g/t Au. No significant assay results were returned, possibly due to hole orientation. However, additional work on this prospect is justified as mapping suggests a significant stockwork vein zone hosted within intrusive rocks.
GL3 target area 8300 prospect hole GL-20-010 was drilled to a northeast azimuth to test a strong IP chargeability anomaly below visible alteration on surface. No significant gold or silver values were returned. The chargeability high was explained by disseminated, fine-grained pyrite hosted in volcaniclastics. The GL3 Main target, which is separate from the 8300 prospect, has not yet been drill tested.
Next steps
With drill results mostly completed for the 2020 exploration program, Evergold is crafting specific drilling and related exploration activities for the approaching field season at both Golden Lion and Snoball.
About Evergold Corp.
Evergold has been assembled by a team with a record of recent success in British Columbia, combining four 100-per-cent-owned properties in prime B.C. geological real estate from well-known geologist C.J. (Charlie) Greig, with the recently optioned Rockland property in Nevada, seasoned management, and a qualified board. The company’s flagship assets consist of the Snoball property, located in the heart of B.C.’s famed Golden Triangle, where drilling in 2020 achieved the discovery of a new high-grade intrusion-related gold-silver system on Pyramid Peak; the Golden Lion property, located at the north end of B.C.’s Toodoggone region, where drilling in 2020 confirmed the presence of a large-scale epithermal-style gold-silver zone at the GL1 Main prospect; and the formerly producing high-grade Rockland gold-silver property in Nevada. All three of these properties host discoveries and/or zones of precious metals that the company believes offer considerable near-term upside.
Quality assurance/quality control
Andrew J. Mitchell, PGeo, vice-president, exploration, for Evergold and a qualified person as defined by NI 43-101, has reviewed and approved the technical information in this news release.
Samples of NRQ (7.576 centimetres) diameter drill core were cut by a diamond-blade rock saw, with half of the cut core placed in individual sealed polyurethane bags and half placed back in the original core box for permanent storage. Sample lengths for holes in this release average 1.51 metres and typically vary from a minimum 0.6 metre interval to a maximum 2.29-metre interval. Drill core samples were flown from camp to Smithers then delivered by truck in sealed woven plastic bags to the MSA Labs preparation facility in Terrace, B.C., with final analysis at the MSA analytical laboratory in Langley, B.C. The MSA Labs facilities are accredited to the International Organization for Standardization/International Electrotechnical Commission 17025:2017 and ISO 9001:2015 standards. Gold was determined by fire assay fusion of a 50-gram subsample with atomic absorption spectroscopy (AAS). Various metals including silver, gold, copper, lead and zinc are analyzed by inductively coupled plasma (ICP) atomic emission spectroscopy, following multiacid digestion. Both the company and MSA Labs have robust QA/QC program that includes the insertion of blanks, standards and duplicates.
Golden Lion drilling — significant intercepts
Widths reported are drilled core lengths. True widths for individual holes targeting the GL1 Main zone are not presently known as the GL1 Main zone dip has not been determined. However, true widths for the GL1 Main zone as measured perpendicular to apparent strike appear from modelling to well exceed 100 metres. True widths for reconnaissance holes GL-20-004, 005, 010, 014 and 015 are unknown, as there has been insufficient drilling to determine them.
Drill hole From To Length Au Ag
(metres) (metres) (metres) (g/t) (g/t)
GL1 Main zone holes
GL-20-009 4.88 93.50 88.62 0.71 0.89
including 45.00 61.50 16.50 1.59 0.95
including 48.00 58.50 10.50 2.07 0.98
including 48.00 55.50 7.50 2.53 0.87
including 48.00 54.00 6.00 2.92 0.88
GL-20-011 29.51 103.01 73.50 0.44 0.87
GL-20-012 10.30 14.80 4.50 0.51 9.99
and 33.17 42.17 9.00 0.61 1.01
GL-20-013 64.00 91.60 27.60 0.58 0.80
including 87.85 90.60 2.75 3.42 2.30
GL1 Main zone -- off-trend holes
GL-20-016 173.50 190.15 16.65 0.13 -
reconnaissance holes
GL-20-001 NSI (1) -- but elevated As and Sb
GL-20-004 to be assayed during 2021 program
GL-20-005 NSI
GL-20-010 NSI
GL-20-014 44.36 45.36 1.00 3.66 33.89
GL-20-015 NSI
(1) There were no significant intercepts.
(2) This also returned 3.34 per cent Cu.
Altus Strategies drills five m of 43.83 g/t Au at Diba
Altus Strategies PLC has released further encouraging results from the recently completed 10,308-metre reverse circulation drilling program at its 100-per-cent-owned Diba gold project located in western Mali. Diba hosts a shallow-dipping, near-surface gold deposit and several other prospect areas.
Completion of 10,308 m RC drilling program at Diba gold project in western Mali;
Further encouraging intersections from Diba deposit, including (intersections are down the hole and not true widths):
43.83 grams per tonne gold over five m from surface;
11.03 g/t Au over three m from 37 m;
2.11 g/t Au over 14 m from 21 m;
Diba deposit extended by 100 m to the west with near-surface lenses intersected;
Approximately 25 per cent of the assay results from the drilling program are pending;
Follow-up drilling at the Diba deposit and other prospects is being planned;
The current mineral resource estimate (MRE) for the Diba deposit (see mineral resource update following and Altus’s news release dated July 8, 2020, titled “Significant Gold Resource at Diba Project, Western Mali”) comprises:
4,834,000 tonnes at 1.39 g/t Au for 217,000 ounces in the indicated category;
5,479,000 tonnes at 1.06 g/t Au for 187,000 ounces in the inferred category;
Diba is strategically located in a world-famous gold belt that hosts numerous open-pit mines.
Steven Poulton, chief executive officer of Altus, commented: “We are delighted to report on further highly encouraging results from the recently completed 10,308 m RC drilling program at the Diba gold deposit in western Mali. The results include 43.83 g/t Au over five m from surface, from a drill hole designed to test a modelled northeast-trending high-grade zone. We are also encouraged by intercepts outside the current MRE envelope, including 11.03 g/t Au over three m from 37 m, which may potentially extend the mineralized zone by approximately 100 m to the west.
“Results are currently pending from 33 holes that have been drilled at a number of prospects outside of the current MRE. Our technical team is reviewing the data received to date and planning a ground magnetic survey, which will commence shortly and be used to guide the next phase of drilling. We look forward to updating shareholders in due course.”
Diba project: drilling program
The RC drilling program was completed by Capital Drilling Ltd. and comprises a total of 10,308 m over 114 holes. A total of 4,932 metres were drilled (over 57 holes) in and around the Diba deposit testing potential updip, downdip and along-strike extensions, as well as infilling areas within the MRE envelope to increase the resource confidence. A further 5,376 metres were drilled to test a number of prospects located within three km of the Diba deposit. All the drill holes were drilled at minus-60-degree inclination and ranged between 50 m and 270 m in length. Drilling has been oriented perpendicular to the strike of the Diba deposit and the interpreted structural orientation of the target areas.
The assay results for 30 holes (2,572 m) reported in this news release are summarized in a table on the company’s website. Assay results for the first 51 holes (4,886 m) of this drilling program were reported by the company on Jan. 7, 2021 (see Altus’s news release titled “Broad High Grade Gold Intercepts from Drilling at Diba Project, Western Mali”).
The program was designed to:
Test potential extensions of the Diba MRE envelope;
Increase the resource confidence of the MRE including the northeast-trending high-grade zone;
Test the potential for mineralization at five surrounding prospects within three km of that part of the Diba deposit subject to the MRE;
Provide quality assurance/quality control support for the Diba deposit model.
Testing potential extensions of the Diba MRE envelope
Drilling was undertaken along strike (to the north and south), downdip (to the east) and also targeted the potential for new lenses to the west. A total of 4,979 m of drilling over 58 holes has been completed within the Diba deposit. Assay results from 11 holes for 852 m of drilling are reported in this release.
The results received to date confirm the discovery of a new zone of mineralization, which may potentially extend the Diba deposit by approximately 100 m to the west, including (intersections are down the hole and not true widths):
11.03 g/t Au over three m from 37 m downhole (20KSRC-053);
1.21 g/t Au over eight m from 10 m downhole (20KSRC-052);
1.05 g/t Au over 13 m from 25 m downhole (20KRC-003) (previously reported).
Increase the resource confidence of the MRE including the northeast-trending high-grade zone
A total of 1,984 metres of drilling have been completed in 22 holes within that part of the Diba deposit subject to the MRE, particularly targeting the interpreted high-grade northeast-trending zone. Assay results from 10 holes are reported in this news release.
The further results provide additional confirmation of the high-grade and near surface mineralization, including (intersections are down the hole and not true widths):
3.21 g/t Au over three m from five m downhole (20KSRC-066);
43.83 g/t Au over five m from surface (20KSRC-067);
2.13 g/t Au over six m from 25 m downhole (20KSRC-069);
2.11 g/t Au over 14 m from 21 m downhole (20KSRC-072);
2.32 g/t Au over five m from 12 m downhole (20KSRC-073).
Test the potential for mineralization at five surrounding prospects within three km of the MRE
A total of 5,375 metres of reconnaissance drilling have been completed in 57 holes across five target areas outside of the main Diba deposit. The prospects tested were Diba NW (40 holes for 3,725 m), Central Plateau (five holes for 400 m), Diba Southwest and Twin Plateau (10 holes for 1,050 m), and Diba East Plateau (two holes for 200 m). Assay results for a further nine holes have been received from outside of the Diba deposit and these are summarized in the associated table, along with the results of 21 holes in the Diba deposit, which have not previously been reported. The results of 31 holes from outside of the Diba deposit were reported by the company on Jan. 7, 2021. Assay results for 17 holes from outside of the Diba deposit are still pending and therefore have not yet been released. The priority holes planned for the Diba Southwest prospect were not drilled due to poor access for the drill rig. The remaining holes will be completed in the next phase of drilling.
Planning for a ground magnetic survey is being undertaken by the company, the results of which will be used to guide the next phase of drilling outside of the Diba deposit, on existing as well as new prospect areas.
Provide QA/QC support for the Diba deposit model
A number of holes were planned proximal to historic holes to validate previous assay results and intersections in the Diba deposit model. Four holes were drilled and assay results have been received from one hole to date (as previously reported).
DIBA DRILL INTERSECTIONS FROM CURRENT PROGRAM
Hole ID From To Intersection Grade
(m) (m) (m) (g/t Au)
20KSRC-066 5.00 8.00 3.00 3.21
43.00 44.00 1.00 1.10
75.00 77.00 2.00 0.68
20KSRC-067 0.00 5.00 5.00 43.83
33.00 34.00 1.00 1.83
49.00 59.00 10.00 0.72
20KSRC-068 14.00 15.00 1.00 1.54
69.00 70.00 1.00 9.81
20KSRC-069 15.00 18.00 3.00 2.04
25.00 31.00 6.00 2.13
41.00 44.00 3.00 0.64
20KSRC-070 41.00 46.00 5.00 0.56
64.00 65.00 1.00 0.67
20KSRC-071 11.00 15.00 4.00 0.66
25.00 26.00 1.00 0.67
20KSRC-072 21.00 35.00 14.00 2.11
39.00 48.00 9.00 1.98
52.00 53.00 1.00 1.23
58.00 67.00 9.00 1.84
20KSRC-073 4.00 5.00 1.00 10.30
12.00 17.00 5.00 2.32
25.00 32.00 7.00 0.81
39.00 46.00 7.00 0.80
20KSRC-074 2.00 3.00 1.00 4.52
39.00 45.00 6.00 0.74
50.00 58.00 8.00 0.73
20KSRC-078 46.00 47.00 1.00 2.12
56.00 57.00 1.00 0.89
82.00 83.00 1.00 0.50
91.00 93.00 2.00 0.58
20KSRC-052 10.00 18.00 8.00 1.21
20KSRC-053 28.00 30.00 2.00 1.58
37.00 40.00 3.00 11.03
67.00 68.00 1.00 0.51
76.00 77.00 1.00 0.61
20KSRC-054 15.00 18.00 3.00 1.83
20KSRC-058 51.00 54.00 3.00 1.33
20KSRC-059 no significant result
20KSRC-060 no significant result
20KSRC-061 80.00 81.00 1.00 0.84
20KSRC-062 no significant result
20KSRC-065 20.00 21.00 1.00 1.27
25.00 26.00 1.00 0.56
20KSRC-075 no significant result
20KSRC-079 21.00 24.00 3.00 0.61
20KSRC-055 no significant result
20KSRC-056 no significant result
20KSRC-057 no significant result
20KSRC-080 no significant result
20KSRC-081 no significant result
20KSRC-063 no significant result
20KSRC-064 no significant result
20KSRC-076 no significant result
20KSRC-077 no significant result
Notes
Intersections based on 0.5 g/t Au cut-off and less than or equal to three m
consecutive internal waste;
Intersections are down the hole and do not represent true widths of
mineralization;
No grade capping has been applied;
Estimated true widths for the holes are from 75 per cent to 100 per cent of
the intercept width.
Mineral resource update
The company intends to incorporate the results from the current drill program when all have been received and compiled into an updated MRE for the Diba deposit. Diba currently hosts an MRE of 217,000 ounces at 1.39 g/t Au (indicated) and 187,000 ounces at 1.06 g/t Au (inferred) in both oxide and fresh domains as set out in the associated table. The MRE was previously reported by the company on July 6, 2020 (see Altus’s news release titled “Significant Gold Resource at Diba Project, Western Mali”).
DIBA MINERAL RESOURCE ESTIMATE
Inferred
Grade Contained Grade Contained
Tonnes (g/t) gold (oz) Tonnes (g/t) gold (oz)
Oxide 3,900,000 1.46 183,100 939,000 1.10 33,200
Fresh 934,000 1.12 33,600 4,540,000 1.05 153,300
Total 4,834,000 1.39 217,000 5,479,000 1.06 187,000
Notes
(1) The MRE has an effective date of July 6, 2020.
(2) The mineral resources in the MRE are classified according to the
Canadian Institute of Mining, Metallurgy and Petroleum (CIM) "Estimation
of Mineral Resources and Mineral Reserves Best Practice Guidelines" dated
Nov. 29, 2019, and CIM "Definition Standards for Mineral Resources and
Mineral Reserves" dated May 10, 2014.
(3) Mineral resources are reported within a pit shell and are reported
to a base-case cut-off grade of 0.5 g/t Au.
(4) The quantity and grade of reported inferred resources in this
estimation are uncertain in nature, and there has been insufficient
exploration to define these inferred resources as an indicated or
measured mineral resource and it is uncertain if further exploration
will result in upgrading them to an indicated or measured mineral
resource category.
(5) Mineral resources which are not mineral reserves do not have
demonstrated economic viability. The estimate of mineral resources
may be materially affected by environmental, permitting, legal,
marketing or other relevant issues.
(6) All tonnages reported are dry metric tonnes. Minor discrepancies
may occur due to rounding to appropriate significant figures.
(7) Tonnages are rounded to 1,000 t and gold to 1,000 oz as this is
an estimate.
Diba project: location
The 81-square-kilometre Diba (Korali Sud licence) project is located in the Kayes region of western Mali, approximately 450 km northwest of the capital city of Bamako. The project sits five km west of the company’s Lakanfla gold project, which is under joint venture with Australian Securities Exchange-listed Marvel Gold Ltd. and approximately 13 km south of the multimillion-ounce Sadiola gold mine and 35 km south of the multimillion-ounce Yatela former gold mine, both owned by Allied Gold Corp. Diba is bounded by the Sadiola permit on its northern and eastern boundaries. Mineralization hosted on these properties is not necessarily indicative of mineralization hosted at Diba.
Diba project: geology and mineralization
Mineralization at the Diba project is sediment-hosted within a series of stacked lenses, typically between 20 m and 40 m thick. The lenses are shallow-dipping at approximately 30 degrees angled to the east/east-southeast. The Diba deposit is considered to be controlled by a number of northwest- and northeast-oriented structures, with gold occurring as fine-grained disseminations in localized high-grade calcite-quartz veinlets. Alteration at Diba is typically albite-hematite-plus/minus-pyrite, although pyrite content is generally very low (less than 1 per cent). The weathering profile at the project is estimated to be up to 70 m vertical depth, resulting in extensive oxidation from surface. The oxide gold mineralization at Diba is predominantly found in saprolite within 50 m of surface and across a compact 700 m by 700 m area.
Quality assurance/quality control
All RC samples were collected following industry best practices with an appropriate number and type of certified reference materials (standards), blanks and duplicates inserted to ensure an effective QA/QC regime. Drilling at Diba is being conducted by Capital Drilling Ltd. Samples were collected at one m sample intervals and a representative sample was split at the site and sent for analysis at SGS SARL (Bamako, Mali) by fire assay technique FAE505. All standard, blanks and duplicates have been reviewed and no significant issues with the data have been identified.
Qualified person
The technical disclosure in this regulatory announcement has been approved by Steven Poulton, chief executive officer of Altus. A graduate of the University of Southampton in geology (honours), he also holds a master’s degree from the Camborne School of Mines (Exeter University) in mining geology. He is a fellow of the Institute of Materials, Minerals and Mining and has over 20 years of experience in mineral exploration, and is a qualified person under the Alternative Investment Market rules and National Instrument 43-101.
About Altus Strategies PLC
Altus Strategies is a mining royalty company generating a diversified and precious-metal-focused portfolio of assets. The company’s focus on Africa and differentiated approach, of generating royalties on its own discoveries as well as through financings and acquisitions with third parties, has attracted key institutional investor backing. The company engages constructively with all stakeholders, working diligently to minimize its environmental impact and to promote positive economic and social outcomes in the communities where it operates.
Abraplata drills 61 m of 190.2 g/t AgEq at Diablillos
The latest assays received from five diamond drill holes completed at the Oculto deposit intercepted significant near-surface silver and gold mineralization, on Abraplata Resource Corp.’s wholly owned Diablillos property in Salta province, Argentina. The holes were designed to develop additional shallow resources within the Whittle pit shell as well as to infill and extendthe current estimated mineral resources.
Holes DDH 20-015 and DDH 20-017 were drilled from the same platform to test for shallow, near-surface silver and gold mineralisation. Hole DDH 20-015 was drilled to a depth of 101.5 meters and hole DDH 20-017 was drilled to a depth of 110.5 meters. Hole DDH 20-017 intersected 61 meters grading 190.2 g/t silver equivalent and 2.54 g/t gold equivalent starting at only 13 meters downhole. These results indicate previously undefined shallow resources within the Whittle Pit which are expected to contribute significantly to the early economics of open pit mining.
Note: All results in this news release are rounded. Assays are uncut and undiluted. Widths are drilled widths, not true widths. True widths are estimated to be approximately 80% of the interval widths.
1 AgEq & AuEq calculations for reported drill results are based on USD $20.00/oz Ag, $1,500/oz Au and $3.00/lb Cu. The calculations assume 100% metallurgical recovery and are indicative of gross in-situ metal value at the indicated metal prices. Refer to Technical Notes below for metallurgical recoveries assumed in the 2018 PEA study on Diablillos.
John Miniotis, President & CEO, commented, “Once again, we are very pleased with the latest drill results which demonstrate potential extensions of mineral resources at Oculto both within and beyond the Whittle pit shell. These results highlight the potential expansion of shallow, oxide gold and silver mineralization in areas previously categorized as waste, as well as the potential for increasing gold grades at depth. These results are very encouraging and are expected to improve the robustness of our large, existing Mineral Resources.”
Hole DDH 20-013
The multiple gold and copper intersections in hole DDH 20-013 over a zone spanning in excess of 400 meters (from 124 to 541 meters) demonstrate a substantial extension of the mineralised zone well beyond the margins of the previously designed Whittle pit shell. Additional drilling is planned with the objective of developing resources in this north-eastern area of Oculto.
Holes DDH 20-015 and DDH 20-017
Holes DDH 20-015 and DDH 20-017 were short holes drilled from the same platform to test for shallow gold mineralisation. Hole DDH 20-015 intersected 42.30g/t Ag from 38 to 61 meters and hole DDH 20-017 intersected 105.41 g/t Ag and 1.13g/t Au from 13 to 74 meters. These holes show continuity of shallow resources within the Whittle pit shell which should contribute substantially to the economics of early mining at Oculto by upgrading areas previously categorized as waste. Systematic drilling of this previously undefined shallow mineralised zone is underway.
Exploration Program Update
To date, the Company has reported results from a total of 18 diamond drill holes in the Oculto Zone as part of its recently expanded exploration program. Assays results from an additional 15 holes are currently pending from the laboratory due to delays caused by the COVID-19 pandemic, however the Company expects a rapid return of results over the next several weeks.
The Company is currently concentrating on exploring the continuity of gold mineralisation to the northeast in support of an expansion of the Whittle Pit shell to the northeast (hole DDH 20-013), as well as defining zones of shallow silver and gold mineralisation within the pit (holes DDH 20-015 and DDH 20-017) which are expected to improve the economics of an open pit operation. Multiple shallow holes are planned in the upper part of the deposit, with the objective of converting waste to mineralized resources and reducing the overall strip ratio of the project. The second drill rig is also being used for reconnaissance exploration of peripheral target areas.
Incentive Stock Options and RSUs
The Company announces that pursuant to the Company’s Share Compensation Plan, an aggregate of 3,157,500 incentive stock options (the “Options”), exercisable at a price of $0.39 per share for a period of five years, has been granted to officers, directors, employees and consultants of the Company. The Options vest in 25% instalments every 6 months, starting from the date of the grant.
In addition, the Company has granted an aggregate of 4,815,000 restricted share units (“RSU”). The RSUs vest in three equal tranches on Dec. 1 in 2021, 2022, and 2023. The RSUs entitle the holder to be issued one common share for each vested RSU.
Rob Bruggeman, Chairman, commented: “AbraPlata strongly believes in aligning the interests of management and directors with shareholders. To that end, our compensation philosophy emphasizes equity-based rewards over cash salaries and bonuses. The grant of RSUs and stock options announced today is in recognition of the significant achievements made by the AbraPlata team in the past year and also to motivate them to continue to advance the exploration and development efforts on the Diablillos silver-gold project. I look forward to continued success for the Company and its shareholders in 2021 and beyond.”
About Diablillos
The 80 km 2 Diablillos property is located in the Argentine Puna region – the southern extension of the Altiplano of southern Peru, Bolivia, and northern Chile – and was acquired from SSR Mining Inc. by the Company in 2016. There are several known mineral zones on the Diablillos property, with the Oculto zone being the most advanced with approximately 90,000 metres drilled to date. Oculto is a high-sulphidation epithermal silver-gold deposit derived from remnant hot springs activity following Tertiarty-age local magmatic and volcanic activity. Comparatively nearby examples of high sulphidation epithermal deposits include: El Indio, Chile; Veladero, Argentina; and Pascua Lama, on the Chile-Argentine border.
Table 2 - 2018 Mineral Resource Estimate for the Oculto Deposit, Diablillos Project
---------------------------------------------------------
|Category |Tonnage|Ag |Au |Contained Ag|Contained Au|
| |(000 t)|(g/t)|(g/t)|(000 oz Ag) |(000 oz Au) |
|-------------------------------------------------------|
|Indicated|26,900 |93.0 |0.85 |80,300 |732 |
|-------------------------------------------------------|
|Inferred |1,000 |46.8 |0.89 |1,505 |29 |
---------------------------------------------------------
Effective August 31, 2017. The resource estimate and supporting technical report are N.I. 43-101 compliant. Full details of the Mineral Resources are available in a Company news release dated March 2, 2018. For additional information please see Technical Report on the Diablillos Project, Salta Province, Argentina, dated April 16, 2018, completed by Roscoe Postle Associates Inc, and available on http://www.SEDAR.com .
QA/QC and Core Sampling Protocols
AbraPlata applies industry standard exploration methodologies and techniques, and all drill core samples are collected under the supervision of the Company’s geologists in accordance with industry practices. Drill core is transported from the drill platform to the logging facility where drill data is compared and verified with the core in the trays. Thereafter, it is logged, photographed, and split by diamond saw prior to being sampled. Samples are then bagged, and quality control materials are inserted at regular intervals; these include blanks and certified reference materials as well as duplicate core samples which are collected in order to measure sample representivity. Groups of samples are then placed in large bags which are sealed with numbered tags in order to maintain a chain-of-custody during the transport of the samples from the project site to the laboratory.
All samples are received by the SGS offices in Salta who then dispatch the samples to the SGS preparation facility in San Juan. From there, the prepared samples are sent to the SGS laboratory in Lima, Peru where they are analyzed. All samples are analyzed using a multi-element technique consisting of a four acid digestion followed by ICP/AES detection, and gold is analyzed by 50g Fire Assay with an AAS finish. Silver results greater than 100g/t are reanalyzed using four acid digestion with an ore grade AAS finish.
Qualified Persons
David O’Connor P.Geo., Chief Geologist for AbraPlata, is the qualified person as defined by National Instrument 43-101 Standards of Disclosure for Mineral Projects, has reviewed and approved the scientific and technical information in this news release.
Technical Notes
All results in this news release are rounded. Assays are uncut and undiluted. Intervals are drilled widths, not true widths. AgEq calculations for reported drill results are based on USD $20.00/oz Ag, $1,500/oz Au and $3.00/lb Cu. The calculations assume 100% metallurgical recovery and are indicative of gross in-situ metal value at the indicated metal prices. The most recent technical report for the Diablillos Project is the 2018 Preliminary Economic Assessment (PEA) authored by Roscoe Postle Associates Inc. The PEA assumes average metallurgical recoveries of 82% Ag and 86% Au. No metallurgical testwork has yet been completed on the recovery of copper.
About AbraPlata
AbraPlata is a mineral exploration company with a diversified portfolio of silver-gold and copper exploration projects in Argentina and Chile. The Company is focused on advancing its 100%-owned Diablillos silver-gold project in the mining-friendly Salta province of Argentina, which is well-advanced, with more than US$40 million spent historically on exploration with drilling ongoing and an initial open pit PEA completed in 2018. The Company is led by an experienced management team and has long-term supportive shareholders including Mr. Eric Sprott, Altius Minerals and SSR Mining. In addition, AbraPlata owns the Arcas project in Chile where Rio Tinto has an option to earn up to a 75% interest by funding up to US$25 million in exploration. AbraPlata is listed on the TSX-V under the symbol “ABRA”.
For Magna, 2020 was a year full of achievement, goal fulfillment and great transformation. In the face of an unquestionably challenging period for our industry and with limited capital, we were able to grow our company through strategic acquisitions and targeted exploration as we embarked on our journey to evolve from a junior exploration company to an intermediate gold producer in Mexico. By leveraging our strategic adaptability and resources and relationships in-country, we successfully identified and executed on several opportunities that we believe have positioned the Company for significant value creation in 2021. Since the Company’s inception in 2017, we have returned 10x to the Company’s shareholders. Our commitment is to continue delivering returns on our existing and future portfolio of assets through disciplined capital allocation and our country advantage of having our senior management, including me, in Mexico.
Our evolution in 2020 was driven by several strategic initiatives as outlined below:
1. Commitment to ESG
Magna has an unwavering commitment to the protection of health, safety, and the environment. We operate in a sustainable and socially responsible manner that is consistent with our values by actively promoting and developing systems to minimize risk and impact. We work cooperatively with local stakeholders and governmental agencies using the best technologies to ensure safe and efficient use of resources. Our commitment to the country of Mexico and our economic, social, and environmental impact will continue to be transparent.
In 2020, the San Francisco Mine in Sonora, Mexico (the “San Francisco Mine”) surpassed two million man-hours, including contractors and suppliers, without any disabling incidents or accidents in the workplace. The company has earned and maintained several accreditations for social responsibility, environmental stewardship, and inclusivity in the workplace. These include (i) ESR – Empresa Socialmente Responsable, (ii) Empresa Familiarmente Responsable, and (iii) Seguridad Sanitaria.
2. Add Immediate Production and Cash Flow
Magna acquired the past producing San Francisco Mine in May 2020, with limited dilution to our shareholders. Since acquiring the San Francisco Mine, we have re-invigorated the operation and transformed a residual leach operation approaching the end of its life into a cornerstone mine that will produce approximately 66,250 ounces of gold per year, at declining all-in costs for eight years based on the Pre-Feasibility Study we completed in August 2020.
Since acquiring San Francisco Mine, Magna has sold 20,235 ounces of gold and generated revenues of US$37 million. From the revenue generated, the Company has reinvested approximately US$12 million towards plant and equipment refurbishing, leach pad construction, infill drilling to increase resources, pre-stripping of the pits, and underground mine exploration and development. We are nearing the completion of the San Francisco Mine’s turnaround period and anticipate the full ramp-up to be completed in Q1 2021.
The San Francisco Mine contains several incremental production opportunities that we are continuing to explore and plan to exploit this year. These include the expansion of the current operating pits through additional drilling and the ongoing development of an underground mine inside one of the open pits. In addition, there are at least three other satellite open-pit opportunities near the San Francisco Mine with historical drilling and positive results.
3. Solidify the Balance Sheet
In May 2020, Magna closed a non-brokered private placement for total gross proceeds of $7 million, which included lead investments by Mr. Eric Sprott and two other mining participants. With cash flow generation from the San Francisco Mine, including re-investment into our assets, our cash balance is currently US$7.2M as of December 31, 2020 and the Company remains well-positioned to execute on our growth strategy in 2021.
4. Create Value at the Drill Bit
Magna implemented several productive exploration programs in 2020 that targeted the development of new gold and silver projects.
Mercedes
Geological work at Mercedes projects in Sonora, Mexico (“Mercedes”) was a team effort by Magna geologists who conducted: (i) geological mapping over an area of 4 square kilometers; (ii) collected over 1300 rock samples; and (iii) completed the successful initial phase of a reverse circulation drilling program that included 2,723 m in 21 holes. Drilling at Mercedes by Magna successfully confirmed oxide gold mineralization hosted in an altered andesite at La Lamosa Hill (see press release dated November 14, 2019). The Company is contemplating follow- up drill programs to test mineralization at depth and the extent of the zone to the north of La Lamosa. This second round of drilling will be done as a follow-up program that is expected to confirm and increase the oxide potential.
La Lamosa Hill selected drill results phase 1
Hole True Width Au (g/t)Ag (g/t)AuEq (g/t)
MER 19-00412.95 m 0.59 64.2 1.37
Incl. 2.28 m 1.57 151.0 3.41
1.52 m 0.26 300.0 3.90
MER 19-0092.94 m 1.23 15.8 1.42
Incl. 0.98 m 2.65 19.2 2.88
MER 19-01021.55 m 0.60 15.9 0.80
Incl. 3.23 1.74 69.0 2.58
MER 19-0158.38 m 0.77 6.5 0.85
Incl. 0.76 m 0.26 223.0 2.97
MER 19-01928.96 m1 0.76 8.9 0.87
Incl. 1.52 m11.70 64.8 2.49
MER 19-02021.34 m1 1.61 2.2 1.64
Incl. 3.05 m16.99 3.9 7.03
MER 19-02121.34 m1 1.21 11.8 1.36
Incl. 3.05 m14.26 15.4 4.44
Incl. 1.52 m12.57 19.0 2.80
Incl. 1.52 m11.53 41.5 2.04
1. True width not available. Value indicates width
In December 2020, Magna completed a Phase I diamond drill program at its 100%-owned La Pima Silver Project located in the Mojave/Sonora Mega shear in Sonora, Mexico (“La Pima”) (see press released date December 8, 2020). Magna drilled a total of 1,719 meters in nine core holes. La Pima is an early-stage silver target with an excellent surface target of historical mine workings and outcrops. Magna completed a geophysical survey on the property in September and results were positive.
Our acquisition of the San Francisco Mine was coupled with the acquisition of several attractive precious metal exploration projects that we believe have the potential to host significant mineral resources and aid in the Company’s long-term growth and value generation.
In January 2020, Magna entered an exploration and option to purchase agreement pursuant to which Magna acquired the option to acquire a 100% undivided interest of two mining claims (the “San Judas Project”) located in Sonora, Mexico.
In November 2020, Magna acquired a 100% undivided interest in the mining concessions comprising the Margarita Silver project in Chihuahua, Mexico (the “Margarita”). Margarita is comprised of two mining concessions, covering 125.63 hectares, located within the prolific Sierra Madre Gold Belt, which hosts numerous multimillion-ounce gold-silver deposits, 88 kilometers south of the state capital of Chihuahua in the Municipality of Satevo, State of Chihuahua, Mexico.
Margarita is a low to intermediate sulphidation epithermal Ag-Pb-Zn system (primarily Ag) with 7km of outcropping multiple veins inside the property. Channel sampling returned values of 100-900 g/t Ag. Only one vein has been drilled. A total of 35 DD holes were completed along 1,700 m of the Margarita vein, with over 1kg/t AgEq values in some drill intercepts. Please refer to press releases by Sable Resources dated July 26, 2018 and June 11, 2019 for the full set of these drill results.
Margarita Silver Project - selected drill results
DDH LengthFrom To AgEq (g/t)Ag (g/t)Au (g/t)Pb (%)Zn (%)
M-DDH-18-044.25 41.5 45.75 462 430 NA 0.18 0.66
Including 1.5 42.7 44.20 1,073 986 NA 0.5 1.6
M-DDH-18-0612.4 40.95 53.35 514 446 NA 0.7 1.04
Including 4.1 42.7 46.8 902 745 NA 1.38 1.87
M-DDH-18-0814.05 67.4 81.45 461 306 NA 0.73 1.88
Including 2 73.2 75.2 859 557 NA 2.21 0.44
M-DDH-18-1111.3 57.35 68.65 252 229 NA 0.97 0.32
Including 1.3 62.75 64.05 889 844 NA 0.25 0.6
M-DDH-19-1433.3 18.75 52.05 298 283 NA 0.32 0.78
Including 9.9 33.55 43.45 702 579 NA 0.76 1.67
M-DDH-19-2020.6 47.25 67.85 102 83 NA 0.08 0.29
Including 5.1 50.3 55.4 252 222 NA 0.13 0.47
M-DDH-19-2148.65 48.95 97.6 130 102 NA 0.1 0.43
Including 1 64.65 65.45 222 198 NA 0.18 0.3
Including 2.85 83.30 86.15 428 376 NA 0.28 0.75
Including 2.6 89.8 92.4 351 156 NA 0.72 3.09
M-DDH-19-2212.5 39.75 52.25 73 63 NA 0.05 0.14
Including 4.8 40.95 45.75 143 126 NA 0.1 0.24
M-DDH-19-2212.8 68.6 81.4 176 97 NA 0.36 1.19
Including 1.9 75.20 77.10 529 213 NA 1.81 4.52
M-DDH-19-2437.35 74.70 112.05177 117 0.17 0.21 0.7
Including 0.9 94.30 95.20 391 353 NA 0.12 0.56
M-DDH-19-245.5 102.70108.25689 400 1.07 1.09 3.0
Including 1.65 102.70104.351,122 790 2.92 2.04 0.37
OUTLOOK FOR 2021
As the precious metals market continues to gain momentum in the coming years, Magna will remain focused on bringing forth rapid and sustained market capitalization appreciation. The Company has several remarkable and compelling catalysts for continued growth that we believe positions Magna favourably to take advantage of a stronger precious metals environment. Magna has over 45,000 hectares of highly prospective ground, a gold operation with increasing resources, two very promising gold projects, and a portfolio of four silver properties including La Pima and Margarita – all in two of the most mining-friendly states in Mexico.
Magna has mobilized a crew to commence work on Margarita. This work will include taking possession of 5,097 meters of HQ core, acquiring detailed topographic maps of the project site, and satellite images. Field work of mapping and sampling is scheduled to commence in Q2 2021. An infill drill program is being planned for Q4 of this year at Margarita. In addition to Margarita, Magna is planning field work on their La Pima, San Judas, Mercedes, and Los Muertos holdings. Magna has a highly experienced “boots on the ground” management team that keeps a close watch on operational progress and is quick to identify any potential challenges and needs, as well as opportunities – we will remain nimble and be prepared to ensure operational success. Magna’s Chief Executive Officer, who resides in Mexico in proximity to the Company’s projects and operations, is highly engaged, responsive, and involved in financial and strategic planning. Given our in-country relationships and resources, we have an edge over most foreign mining and exploration companies, and we are poised to leverage our knowledge and expertise within the mining industry in Mexico.
Ramp-up efforts at the San Francisco Mine are progressing at a strong pace. With the full ramp-up of the mine expected to be completed during Q1 2021, Magna expects the San Francisco Mine to produce 66,267 ounces this year, please refer to the NI 43-101 F1 Technical Report Pre-Feasibility Study for The San Francisco Gold Project, Sonora, Mexico dated August 28, 2020. The production profile is weighted to the latter half of fiscal 2021, representing approximately 60% of the yearly production, which will result in a very strong operational progression through 2021. This outlook assumes no material impacts due to COVID-19.
In continuing our path of aggressive growth and successful execution, the Company is now fortifying our organization in full gear with additional leadership from seasoned and experienced individuals to fulfill duties in key positions. These include the positions of a Chief Financial Officer, a Market Development and Investor Relationships VP, and an Independent Chairman of the Board.
We encourage you to follow our performance and progress this year as Magna continues to strive to drive share value. We are grateful to our shareholders and investors for your business and trust, and are grateful to our employees that continue to show consistent dedication and effort towards making Magna a successful and growing company in Mexico.
Qualified Person
James Baughman (P. Geo.), Independent Consulting Geologist and a Qualified Person as defined by NI 43-101, has approved the scientific and technical information in this news release.
About Magna Gold Corp.
The San Francisco Mine
The San Francisco Mine commenced operations in 2010 and has produced over 820,000 ounces of gold. The San Francisco Mine is situated in the north central portion of the state of Sonora, Mexico, approximately 150 kilometers (km) north of the state capital city of Hermosillo and 120 km south of the United States/Mexico border city of Nogales along Highway 15 (Pan American highway). The project is comprised of two previously mined open pits (San Francisco and La Chicharra), together with heap leach processing facilities, and associated infrastructure located close to the San Francisco pit. The San Francisco Project is a gold occurrence with trace to small amounts of other metallic minerals. The gold occurs in granitic gneiss and the deposit contains principally free gold and occasionally electrum. The mineralogy, the possibility of associated tourmaline, the style of mineralization and fluid inclusion studies suggest that the San Francisco deposits may be of mesothermal origin. The San Francisco deposits are roughly tabular with multiple phases of gold mineralization. The deposits strike 60o to 65o west, dip to the northeast, range in thickness from 4 to 50 metres (m), extend over 1,500 m along strike and are open ended. Another deposit, the La Chicharra zone, was mined as a separate pit.
In addition to surface operations Magna is developing an underground operation at the San Francisco Mine. Surface operations were restarted in Q3 2020 and are moving towards full production in 2021.
Margarita Silver Project
Margarita is located in the Satevo Municipality in Chihuahua state, approximately 120km SW of the Chihuahua City, and 110km NNW of the historic Parral Mining district. The property has year-round unrestricted access provided by a good network of Federal-State highways and well maintained dirt & ranch roads. Mineralization at Margarita property is hosted in a series of parallel, steeply dipping, northwest-trending epithermal veins, and silicified fault breccias, some of them known for ~1.7 km along strike. The veins show classical banded epithermal quartz textures with an apparent thickness of between 1 and 5m and the fault breccia zones can reach thickness up to 12m. Work at Margarita includes surface sampling and mapping, drilled 5097m in 35 holes. Two mineralization styles have been identified: high-grade discrete fault-filling veins with grades normally >250 g/t AgEq and widths between 1 and 10m, showing traditional crustiform and colloform textures; and wider intervals with lower grades (=40 to 180 g/t AgEq) characterized by stockwork zones, silicified breccias and silicification in rhyolites.
La Pima Silver Project
The La Pima project is located 25 km in a straight-line NW of the San Francisco Mine. Access to the area is from the town of Santa Ana through Highway No. 2 at Km 13. The mineralization in the area is related to a series of hydrothermal breccia zones with siliceous-hematite matrix locally with carbonates and barite, hosted in several parallel structures with a NW and NE strike, which at the same time form mantle-like bodies with lenticular shapes that develop in the contact zone with limestone structures related to NE 50degree structures. Evidence of Ag mineralization (Ba-Ca-Ag-Pb-Zn breccia) has been found along more than 2.5 km in length, mainly on the middle stratification fossiliferous limestone strands located in the basal part of the calcareous unit.
IP geophysics data collected by Zonge in August confirms surface sampling and mapping work on the property.
Mercedes Gold/Silver Project
Mercedes is an exploration property prospective for structurally controlled high sulphidation type epithermal gold-silver mineralization. The property is located within the Sierra Madre Occidental province, a historically productive, regionally extensive Tertiary volcanic field which stretches from the United States /Mexico border to central Mexico. Mercedes is located toward the western edge of the province and is predominantly underlain by intrusive rocks, granodiorite-monzonite plutonic rocks and quartz feldspar porphyry dykes and stocks exposed by erosion of intermediate and felsic volcanics packages of the Lower and Upper Volcanic sequences. The thick volcanic sequences are characteristic of the region and form much of the Sierra Madre Occidental.
Outcrop in key areas of the property are strongly altered, brecciated intrusives and some propylitically altered volcanics. Zoned assemblages of silica, phyllic, argillic and distal propylitic alteration are recognized. The main prospect area “La Lamosa” is a prominent, highly oxidized red ridge, visible from the highway. Gold and silver are target commodities sought at Mercedes and the property exhibits textures and alteration consistent with high sulphidation epithermal mineralization.
High sulphidation epithermal deposits can be vein hosted or disseminated and are often high tonnage and low grade. Local examples include Alamos Gold Inc.’s Mulatos Deposit and Agnico Eagle Mines Limited’s La India Project roughly 40km NE of Mercedes.
San Judas Gold Project
The San Judas project is located at the southern end of the Caborca Orogenic Gold Belt or Sonora Mojave Mega Shear, a trend known to host several orogenic gold-bearing deposits within an area extending from north-western Mexico into the southwestern United States measuring more than 600 km long and 60 to 80 km wide. Of the deposits within the Caborca Orogenic Gold Belt are a number of large open pit heap leach gold operations such as La Herradura, Soledad-Dipolos and Nochebuena (Fresnillo PLC), San Francisco mine (Alio Gold Inc.), Cerro Colorado (Gold Group), El Chanate (Alamos Gold Inc.) and La Choya (Hecla Mining Company). The combined gold reserves and resources identified within the trend to date total in excess of 20 million ounces of gold.
The oldest rocks within the property are a package of metamorphic rocks which include banded quartz-feldspathic gneiss and augen gneiss, granite, and green schist. All metamorphic rocks exhibit foliation which generally varies in strike direction from between 330degree to North and dips to the southwest generally at 45degree at Santa Lucia and Cueva de Lion. The strike direction at San Martin is generally North/South with sub vertical dips. Quartz veins generally follow foliation and strike of the metamorphic rocks.
The metamorphic rocks are intruded by a Tertiary igneous package, which includes granite with visible feldspar and quartz, and is porphyritic in texture. It appears that the granite was emplaced along low angle shear zones in the system.
Los Muertos Gold/Silver Project
The Los Muertos project is in the Sonora-Mojave Megashear tectonic zone which runs approximately 700km northwesterly from Los Muertos to near Palm Springs, California. The Sonora-Mojave Megashear contains numerous silver-gold deposits, including Magna’s producing San Francisco mine located 300km northwest of Los Muertos. The nearest current producer is Argonaut Gold Inc.’s La Colorada silver-gold mine, located 30km northwest of Magna’s Los Muertos project. (Figure 1.)
The regional geological drivers of silver-gold mineralization in the southern part of the Megashear are well established. Precambrian basement rocks form an eroded undersurface which is overlain by Ordovician, Permian, and Triassic sedimentary rocks. Importantly, the district contains complex hydrothermal signatures related to Cretaceous plutonic activity, later higher-level plutonic events, and finally, the development of a pervasive, mineralized mid-Tertiary vein system.
The La Colorada Gold District, which includes the Los Muertos area, is defined by hundreds of low sulphidation epithermal-vein type historic silver-gold deposits and showings which remain largely unexplored. Vein clusters at Los Muertos share a common orientation with the four main zones at the La Colorada mine, between 045degree and 090degree. Government geological maps indicate that the Los Muertos project’s immediate area is characterized by extreme silicification, hematization and argillic alteration, suggesting the potential for both extensive silver-gold veins systems, and coincident, pervasive disseminated mineralization in the host sedimentary and volcanic rocks.
Magna Gold Corp. is a Canadian gold company engaged in operations, development, exploration and acquisitions in Mexico. Its primary asset is the producing San Francisco gold mine in Sonora, Mexico and exploration stage projects include San Judas, La Pima and Mercedes.
Lithium Chile Inc. has provided results of 29.5 grams per tonne gold from its third follow-up exploration program on the southern half of the Central anomaly on its 100-per-cent-owned Carmona gold-silver-copper property. This phase of the exploration program was completed during the second week of January.
29.5 grams per tonne gold, 52.8 g/t silver and 2.4 per cent copper;
Values range from 1.1 to 29.5 g/t gold, 2.7 to 52.8 g/t silver and 2 to 2.4 per cent copper;
Samples reported are from a two-square-kilometre altered intrusive in the southwest quadrant of the Central anomaly;
Assays are awaited from the SE quadrant and north half of the Central anomaly;
Total exploration target on the Central anomaly covers an area 13 square km of which the southern half has been explored to date.
These high grades of gold and silver come from an area adjacent to the north sector of the Central anomaly where prior samples assayed as high as 26.2 g/t gold and 235 g/t silver (see press release dated Sept. 3, 2020).
Steve Cochrane, president and chief executive officer of Lithium Chile, commented: “I am pleased to announce these recent sample assays from our ongoing exploration program at Carmona. We continue to see excellent gold, silver and copper results from our recently completed third phase exploration program on our Carmona property. While we remain fully committed to advancing our lithium projects the solid results, we are seeing on our Carmona gold property, gives us the option to continue advancing the project or look for a JV partner to carry the project forward. This gives the company added flexibility on both the lithium and precious metal assets.”
Qualified person
Terence Walker, MSc, PGeo, qualified person within the meaning of National Instrument 43-101, has reviewed the contents of this news release. During the course of the exploration program, all samples were collected by experienced Lithium Chile staff. Each rock sample consisted of one to 1.5 k of representative chips taken continuously from outcrop or across mineralized structures and was bagged and sealed on site. All samples were delivered by Lithium Chile’s staff to the ALS prep-lab in La Serena for processing. ALS subsequently shipped a 30-gram subsample to its laboratory in Lima, Peru, where it was analyzed for gold by fire assay preconcentration, AA finish and 35 other elements, including copper and silver, by the ICP technique following agua regia digestion.
About Lithium Chile Inc.
Lithium Chile is advancing a lithium property portfolio consisting of 71,900 hectares covering sections of 10 salars and two laguna complexes in Chile.
Lithium Chile also owns five properties that are prospective for gold, silver and copper. Exploration efforts are also continuing on Lithium Chile’s Carmona property which lies in the heart of the Chilean Mega porphyry copper, gold and silver belt.
Atico Mining drills three m of 34.1 g/t Au at La Plata
Atico Mining Corp. has provided the last results of its 2020 drilling program at the La Plata precious-metal-rich volcanogenic massive sulphide (VMS) project in Ecuador. These results continue to report very encouraging intercepts of volcanic massive sulfides while the new 2021 drill campaign begins in Ecuador.
LA PLATA DRILLING HIGHLIGHTS
Hole From (m) To (m) Int. (m) Au (g/t) Ag (g/t) Cu (%) Zn (%)
CMLP-20-146 64.44 74.75 10.31 2.79 43.04 2.65 0.91
Including 69.69 71.64 1.95 6.14 182.08 7.77 2.68
and 85.05 98.75 13.70 4.49 35.09 1.10 6.35
Including 93.15 96.75 3.60 11.35 88.5 1.85 7.50
CMLP-20-150 91.45 102.00 10.55 13.19 76.84 5.51 4.47
Including 94.47 97.49 3.02 34.1 111.5 11.33 3.49
True widths are dependent on uncertainties in the local strike and dip of the mineralization and are
estimated to be between 76 per cent and 83 per cent of the drill intercept.
Drill holes CMLP-20-146 and CMLP-20-150 were both drilled outside of the existing resource polygon. Drilling was performed to test the Guatuza extension of the North block as it shows continuity of the mineralization of the North block in the direction of the Guatuza zone.
Drill holes CMLP-20-165 and CMLP-20-167, which were exploratory holes drilled between the South and the North block, reported additional intercepts which demonstrates the continuity of massive sulphide mineralization between the two known blocks.
Joseph Salas, Atico’s vice-president of exploration, mentioned, “With the 2021 drilling campaign restarted this month, we are excited to continue this program with two rigs and look forward to testing the new target areas we identified in proximity to the La Plata mineralized footprint.”
VMS footprint continues to expand around the North block
Diamond drill holes CMLP-20-146 and CMLP-20-150 confirmed continuity of high-grade intercepts as the drilling progressed in the North block toward the Guatuza zone. This newly discovered continuity is now called the Guatuza extension of the North block. Even though these latest results are less remarkable than what the company is used to seeing at this project, they still confirm that mineralization within the VMS lenses continue and repeat as it progresses north. The Guatuza zone will require more drilling during the 2021 campaign to fully understand the scale and geometry of this discovery.
Hole CMLP-20-146 shows two long intercepts of 10.3 and 13.7 metres of volcanic massive and semi-massive sulphides which represent the much larger footprint of the northern block that is fragmented by a postmineral dike. Each of these intercepts host a core zone of high-grade polymetallic VMS mineralization. This hole started reporting interesting mineralization at 35 metres from surface and confirmed continuity of the North block lens as the mineralized body approaches the surface toward north.
Hole CMLP-20-150 hosts a high-grade gold-copper interval, reporting 34 g/t Au and 11 per cent Cu over three metres within a larger 10.55-metre intercept. This intercept also represents strong copper and gold continuity as the company progresses northward toward the Guatuza extension zone.
Successful conclusion of the 2020 drilling campaign
The 2020 La Plata exploration program was a success. It was intended to infill the south and north blocks of the La Mina area while upgrading the known mineralized resources from the inferred category. Atico also added strategic step-out drill holes, which are planned to increase the known resources of the two main VMS lenses.
The recent drilling gives Atico’s geology team a higher degree of confidence that VMS mineralization is present between the three lenses (South, North and Guatuza). Today’s laboratory results are reporting these additional zones of mineralization located between those three previously identified blocks. Additional drilling will continue in these target areas starting this month as part of the 2021 exploration campaign to try to increase the polygon size.
DRILL PROGRAM ASSAY RESULTS
Intercept*
Total From To Interval Au Ag Cu Pb Zn
Hole ID length (m) (m) (m) (m) (g/t) (g/t) (%) (%) (%)
CMLP-20-116* 364.64 344.4 352.78 6.38 3.32 24.88 0.45 0.54 4.89
including 346.4 348.00 1.60 8.54 64.00 0.62 1.50 8.29
CMLP-20-138 351.08 No significant intercept
CMLP-20-139 120.00 96.60 101.40 4.78 0.62 2.83 0.83 0.05 0.04
CMLP-20-140 128.15 No significant intercept
CMLP-20-141 116.32 55.40 59.10 3.70 1.09 16.09 0.51 0.19 1.74
and 63.30 67.42 4.12 0.98 11.84 0.89 0.07 0.84
CMLP-20-142 144.25 82.45 83.48 1.03 6.31 24.00 0.43 0.31 36.29
and 103.90 104.69 0.79 5.66 93.00 4.36 0.83 6.65
CMLP-20-144 120.15 No significant intercept
CMLP-20-145 60.04 No significant intercept
CMLP-20-146 140.95 36.76 37.17 0.41 21.7 324.0 4.31 7.32 24.10
and 64.44 74.75 10.31 2.79 43.06 2.65 0.18 0.91
including 69.69 71.64 1.95 6.14 182.1 7.77 0.74 2.68
and 85.05 98.75 13.70 4.49 35.09 1.10 0.94 6.35
including 93.15 96.75 3.60 11.35 88.5 1.85 2.82 7.50
CMLP-20-147 68.66 No significant intercept
CMLP-20-148 55.24 No significant intercept
CMLP-20-149 65.26 No significant intercept
CMLP-20-150 125.82 36.2 38.17 1.97 2.43 19.00 0.87 0.70 2.20
and 91.45 102.00 10.55 13.19 76.84 5.51 0.71 4.47
including 94.47 97.49 3.02 34.1 111.5 11.33 0.53 3.49
CMLP-20-151 50.44 10.49 15.00 4.51 0.44 4.40 0.90 0.01 0.56
CMLP-20-152 49.03 12.19 16.28 4.09 0.48 3.49 1.57 0.03 0.20
and 18.06 19.06 1.00 1.99 14.00 0.46 0.36 2.59
CMLP-20-153 125.46 21.57 29.4 7.83 0.86 5.97 0.56 0.02 0.49
CMLP-20-154 50.00 17.00 25.65 8.65 0.59 7.15 0.36 0.20 1.40
CMLP-20-155 26.17 No significant intercept
CMLP-20-156 125.53 100.58 104.21 3.63 0.98 19.82 0.06 0.40 1.68
CMLP-20-157 141.96 77.65 83.70 6.05 1.10 7.63 0.10 0.22 1.77
CMLP-20-158 110.66 79.50 82.95 3.45 0.89 12.34 1.05 0.05 0.43
and 91.33 96.47 5.14 2.17 19.89 6.32 0.11 1.71
CMLP-20-159 92.62 76.71 79.75 3.04 2.15 53.03 3.80 0.30 2.13
CMLP-20-160 159.98 106.6 108.60 2.00 1.51 11.00 0.12 0.75 3.34
CMLP-20-161 123.43 110.6 117.15 6.55 2.49 20.76 1.66 0.20 1.66
including 114.19 115.90 1.71 3.22 34.74 4.68 0.26 2.00
CMLP-20-162 234.75 148.75 149.63 0.88 20.3 271.0 4.50 1.02 5.03
CMLP-20-163 313.32 296.59 297.49 0.90 1.87 34.00 0.13 0.33 1.31
CMLP-20-164 176.05 No significant intercept
CMLP-20-165 198.70 175.90 179.23 3.33 2.37 4.24 1.12 0.01 0.08
CMLP-20-166 316.46 299.50 300.09 0.59 1.98 41.00 0.85 0.32 2.26
CMLP-20-167 196.40 179.40 182.00 2.60 2.23 7.00 0.41 0.06 0.78
and 185.25 186.1 0.85 7.67 8.00 4.07 0.17 1.19
CMLP-20-168 277.34 No significant intercept
CMLP-20-169 268.61 No significant intercept
CMLP-20-170 254.58 No significant intercept
True widths are dependent on uncertainties in the local strike and dip of the mineralization and are estimated to
be between 76 per cent and 83 per cent of the drill intercept.
* Hole was drilled in the south block and used for new metallurgical testing.
La Plata project
Gold-bearing sulphide mineralization at La Plata occurs as compositional banding composed of chalcopyrite, sphalerite and pyrite laminae with barite occurring as clasts and also as layers. The mineralized lenses have also been dislocated by a few faults and dolerite dikes cutting the body.
The La Plata project is amongst the highest-grade gold-copper VMS deposits in which base and precious metal mineralization is interpreted to have formed as part of multiple volcanic episodes that created a stacked volcanic-exhalite hydrothermal sequence considered favourable for hosting additional VMS lenses. The recent drilling results in the southern portion of the deposit have encountered deeper mineralization, and an extension of mineralization to the north has been discovered by recent trenching results.
The La Plata independent amended and restated National Instrument 43-101 preliminary economic assessment of the La Mina VMS project, Cotopaxi province, Ecuador (PEA), originally dated March 30, 2019, amended and restated July 17, 2019, was prepared by SGS Canada Inc. Mineral Services, Daniel Leroux, MSc, PGeo; Brian Wolfe, MSc, MAIG; David Orava, PEng; Simon Meik, FAusIMM (CP); Qinghua (Jason) Jin, PE; and pursuant to National Instrument 43-101 and reports the La Plata inferred resources at 1.9 million tons at an average grade of 4.1 grams per tonne Au, 49.4 g/t silver, 3.3 per cent Cu, 4.5 per cent zinc, 0.6 per cent lead as available on SEDAR. Preliminary economic assessments are preliminary in nature, that include inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the preliminary economic assessment will be realized. Such projects have increased uncertainty and risk of failure. Mineral resources that are not mineral reserves do not have demonstrated economic viability.
The La Plata project consists of a concession covering a total area of 2,300 hectares along its nine-kilometre length, which contains known mineralization in two VMS lenses and nine priority exploration targets.
The company has a binding option agreement with a private Ecuadorean company to earn up to 75 per cent in the La Plata project, of which the first option to acquire the initial 60-per-cent ownership has been exercised. Please refer to the company’s MD&A (management’s discussion and analysis) for the year ended Dec. 31, 2019, for further details.
Quality assurance and quality control
Before sampling, a centre line, representing bottom of hole (or a reference line when this is not known) is marked on the drill core. The core is cut and sampled, always sampling the right-hand side of the drill core. Samples are selected based on logged geological features, such as rock type, mineralization, alteration and veining. Sample length does not exceed 2.5 m nor is smaller than 20 centimetres. A total of 10 per cent of the samples submitted are certified blanks and standards and field duplicates with, as a minimum, one blank submitted at the beginning of each sample batch. Certified standards are submitted at an average of 6 per cent of the samples submitted. Field duplicates are taken at a rate of one in 20 of the samples taken. For all drill holes, analysis was completed by ALS Chemex in Lima, Peru, with sample preparation completed in Quito. The lab is accredited with International Standards ISO/IEC 17025:2005 and ISO 9001:2015. All major ALS Geochemistry analytical laboratories are accredited to ISO/IEC 17025:2005 for specific analytical procedures.
Qualified control
Dr. Michael Druecker, CPG, is a qualified person under National Instrument 43-101 standards and independent of the company, is responsible for ensuring that the information contained in this news release is an accurate summary of the original reports and data provided to or developed by Atico Mining Corp. Dr. Druecker has approved the scientific and technical content of this news release.
About Atico Mining Corp.
Atico is a growth-oriented company, focused on exploring, developing and mining copper and gold projects in Latin America. The company generates significant cash flow through the operation of the El Roble mine and is developing its high-grade La Plata VMS project in Ecuador. The company is also pursuing additional acquisition of advanced stage opportunities.
Allegiant Gold Ltd. has provided a corporate update and has outlined its goals and objectives for 2021.
Corporate Mission
“Our overriding goal at Allegiant is prove up a multi-million ounce deposit at Eastside, our Flagship project near the town of Tonopah, Nevada, while carefully managing costs and limiting dilution within our share structure,” stated Peter Gianulis, CEO of Allegiant. “We believe we have all the elements to continue expanding the resources at Eastside in a disciplined and methodical manner,” added Mr. Gianulis. Allegiant’s strategy of focusing on Eastside while farming-out its other attractive and non-core projects has provided the Company with a source of income and, thereby, keeping shareholder dilution to a minimum.
The Original Zone at Eastside currently hosts a current Inferred Mineral Resource of 996,000 gold (“Au”) ounces utilizing a US$1,550/ounce gold price and a US$19.67/ounce silver price (see table below)*.
* The updated resource estimate (“Updated Resource Estimate and NI 43-101 Technical Report, Eastside and Castle Gold-Silver Project Technical Report, Esmeralda County, Nevada”) was conducted by Mine Development Associates (“MDA”) of Reno, Nevada with an effective date of December 30, 2019. Heap leach extractions are expected to be around 70% and 20% for gold and silver, respectively, using a three- stage crushing procedure. Milling with a fine grind is expected to result in extractions over 90% and around 50% for gold and silver, respectively. Utilizing a 0.15 g/t cut-off for Au, measured gold was 0.54 g/t and silver was 4.3 g/t. In accordance with NI 43-101 the MDA Technical Report dated January 24, 2020 was filed on SEDAR on January 29, 2020. This report builds on and supersedes the NI 43-101 reports of Ristorcelli (December 2016) and Ristorcelli (July 2017) titled “Resource Estimate and Technical Report, Eastside Gold-Silver Project, Esmeralda County, Nevada” prepared for Allegiant with an Effective Date of July 25, 2017. A copy of the Eastside Technical Report can be found at http://www.sedar.com.
Review of 2020
Although the pandemic has negatively affected many businesses and industries throughout the world, we are exceptionally proud of the progress we made at Allegiant. 2020 was a very busy year for the Company and included the following achievements:
Updated the Resource Estimate at Eastside in January 2020 leading to an increase of inferred resources of over 300,000 Au ounces;
Initiated studies and application for expanded permit area at Eastside to increase permit area from 600 acres to over 3,600 acres;
Completed CDN$3 million private placement to be used for drill program at Eastside;
Generated over CDN$1.7 million in cash from the sale of marketable securities as a result of our farm-out business model;
Received amended drill permit at Boss for a drill program;
Drilled approximately 40 holes (6,000 metres at the South Area (Castle/Boss Zone) at Eastside;
Farmed-out two additional projects (Clanton Hills & Mogollon) generating cash flow and work programs;
Settled CDN$1.6 million in legacy debt with Orea Mining Corp. in exchange for shares of Allegiant issued at a 67% premium to the current market price;
Executed an investor awareness campaign leading to a substantial increase in investor enquiries and conference participation.
2021: Goals & Objectives
We expect that 2021 will be an even busier year for the Company than 2020. Over the coming month, we expect to provide additional information to investors with respect to our plans and work programs. The main objectives we have set forth include:
Castle Zone Drilling {ᙎ –} From September to December 2020, Allegiant drilled over 40 drill holes at the Boss Zone within the Castle Area (located in the south part of Eastside {ᛯ –} see Graph 1 below). Our initial goals set-forth prior to drilling were to a.) confirm the presence of a mineralized area within the Boss Zone, b.) increase resource ounces at the Castle Area and c.) prove-out our theory of a low strip-ratio area within the Castle Area. We are working on interpreting the results and assays and will be providing an update in the coming weeks;
Update Resource Estimate {ᣊ –} We expect to incorporate the recent drill results coupled with our historical drill results to include the Castle Zone (Boss, Berg, Black Rock and Castle) into a 43-101 Updated Resource Estimate for Eastside, incorporating the resource into the entire Eastside Resource Estimate;
Original Pit Zone Drilling {ᩆ –} We expect to continue drilling approximately 5,000 metres at the Original Pit Zone with the objective of increasing the total resource at the Original Pit Zone and reducing the strip ratio within that area;
Initiate Scoping Study/PEA {᭹ –} Upon completion of the drilling at the Original Pit Zone, we expect to initiate a scoping study/PEA giving us an initial insight into the mining economics at Eastside;
Allegiant Farmed-Out Project Drilling {Ა –} 2021 will also see a significant amount of drilling at Allegiant owned projects including Bolo and Mogollon which is expected to total over 10,000 metres between the two projects;
Farming Out Additional Projects {ᶭ –} One of the major management tenements of Allegiant is to farm-out projects to generate cash/share payments while constantly advancing the projects within our portfolio. This strategy has led to significant cash inflows thereby allowing us to minimize dilution and utilizing any raised capital to be used to advance Eastside. We continue to receive tremendous interest on our projects and will seek to farm-out additional projects during the course of 2021.
Peter Gianulis added, “We are excited about our prospects to expand the resource at Eastside in 2021 and look forward to providing investors with additional information from our drilling results throughout the year. Very few companies in the junior gold exploration market allow investors to participate in a large and growing resource in one of the best mining jurisdictions in the world. Allegiant is one of those rare exceptions.”
QUALIFIED PERSON
Andy Wallace is a Certified Professional Geologist (CPG) with the American Institute of Professional Geologists and is the Qualified Person under NI 43-101, Standards of Disclosure for Mineral Projects, who has reviewed and approved the scientific and technical content of this press release.
About Allegiant
Allegiant owns 100% of 10 highly-prospective gold projects in the United States, 7 of which are located in the mining-friendly jurisdiction of Nevada. Four of Allegiant’s projects are farmed-out, providing for cost reductions and cash-flow. Allegiant’s flagship, district-scale Eastside project hosts a large and expanding gold resource and is located in an area of excellent infrastructure.
Alpha Lithium adds second drilling rig at Tolillar
Alpha Lithium Corp. has added a second drilling rig, which will immediately move to start phase two of its three-phase drilling program on Alpha’s 100-per-cent-owned, 27,500-hectare Tolillar salar.
Adding a second drilling rig will accelerate the Company’s planned campaign by starting Phase Two before Phase One is complete. This, on one of the largest wholly-owned salars in Argentina. Previous drilling and sampling on the salar has established the presence of lithium across the tremendous aerial extent of the Tolillar Salar and the current drill program is an additional step towards the completion of a 43-101 Resource Estimate.
The second rig is scheduled to arrive directly from a recent drilling campaign on neighboring Hombre Muerto salar, where it successfully drilled numerous wellbores to similar depths under similar conditions. The Company was very pleased to take advantage of the low mobilization costs, as the Hombre Muerto salar is only 10 km away from the Tolillar Salar. Additionally, the experienced crew and rig do not need to struggle through a common “warm up” period to regain drilling efficiencies.
Phase Two drilling at Alpha’s Tolillar Salar is planned to explore depths up to 450 meters and have been identified on numerous Vertical Electrical Sounding “VES” surveys (see press release October 6, 2020).
Brad Nichol, Chief Executive of Alpha, commented, “Last week we reported receipt of the drilling licenses for Phase Two and now we are thrilled to be adding a second rig and accelerating our development of the asset. Previous campaigns and tests have provided us with substantial comfort on the presence of lithium and the confidence to drill production-ready wells so that our internal lithium chemistry experts can begin the sampling and testing of different Direct Lithium Extraction (“DLE”) technologies on our exact brine. This should allow us to move very quickly into the production phase at the Tolillar Salar. To that end, we have made progress with several DLE technology companies and hope to have news of that progress in the future.”
Alpha recently added a renowned group of lithium chemistry experts to its team (see press release November 18, 2020) for the purpose of examining and evaluating different DLE techniques that have been shown to economically extract lithium at concentrations as low as 100 mg/L.
Qualified Person
Michael Rosko, MS, PG, of E. L. Montgomery and Associates (M&A) of Santiago, Chile, is a registered geologist (CPG) in Arizona, California and Texas, a registered member of the Society for Mining, Metallurgy and Exploration (SME No. 4064687), and a qualified person as defined by National Instrument 43-101. Mr. Rosko has extensive experience in salar environments and has been a qualified person on many lithium brine projects. Mr. Rosko and M&A are completely independent of Alpha Lithium. Mr. Rosko has reviewed and approved the scientific and technical content of this news release.
About Alpha Lithium (TSX.V: ALLI) (OTC: ALLIF) (Frankfurt: 2P62)
Alpha Lithium is a growing team of industry professionals and experienced stakeholders focused on the development of the Tolillar Salar. Together, we have assembled 100% ownership of what may be one of Argentina’s last undeveloped lithium salars, encompassing 27,500 hectares (67,954 acres), neighboring multi-billion-dollar lithium players in the heart of the renowned “Lithium Triangle”. Other companies in the area exploring for lithium brines or currently in production include Galaxy Lithium, Livent, and POSCO in Salar del Hombre Muerto; Orocobre in Salar Olaroz; Eramine SudAmerica S.A. in Salar de Centenario; and Gangfeng and Lithium Americas in Salar de Cauchari.
Japan Gold receives Japan OK for prospecting extensions
Japan Gold Corp. has received acceptance from the Japanese Ministry of Economy, Trade and Industry (METI) of 18 new prospecting rights applications covering extensions to the Barrick Alliance, Mizobe and Onoyama-Yamagano projects in the Hokusatsu region of the Southern Kyushu epithermal gold province.
The Hokusatsu region of Southern Kyushu is Japan’s largest gold producing area with low sulphidation epithermal deposits recording a combined production of over 11 million ounces.
The 18 new prospecting rights applications accepted by METI bring the company’s total coverage in the Hokusatsu region to a total of 100,452.8 hectares, approximately 84 per cent of prospective and explorable ground within the region.
Epithermal vein deposits in the Hokusatsu region are generally hosted on the western margins of gravity anomalies, which form the basis for the new prospecting rights applications.
The Onoyama-Yamagano project is located along the prospective Hokusatsu volcanic front, north of the company’s Ohra-Takamine project and the Barrick Alliance Mizobe-Onoyama project, and west of the historic Yamagano gold mine, which produced in excess of 910,000 ounces of gold at a grade of 17.4 grams per tonne.
Nine new applications on the western side of the Onoyama-Yamagano project were lodged to cover the western flank of a gravity-high feature, which has been further defined by the Barrick Alliance project-scale geophysical surveys.
The Mizobe project, which now incorporates the Mizobe first extension project, is located in the southeast corner of the Hokusatsu region and covers an area of gold antimony anomalism associated with an extensive gravity-high feature that runs through the Mizobe project and into the northeast part of the Ohra-Takamine project.
The nine new Mizobe West extension applications were similarly positioned to cover the southwest flanks of the gravity anomaly which coincident with highly anomalous quartz veins, breccia and sinter floats sampled in drainages on the western side of the Mizobe project and the southwest portion of the Mizobe-Onoyama project.
The company’s portfolio now comprises 202,926.2 hectares (2,029.26 square kilometres) of prospective ground across Japan’s five major epithermal gold provinces within the three main islands of Kyushu, Honshu and Hokkaido.
Hokusatsu region, Southern Kyushu epithermal gold province
The Hokusatsu region lies within the northern half of the Southern Kyushu epithermal gold province and covers an area of approximately 120,000 hectares. Hokusatsu is Japan’s largest gold producing region with low sulphidation epithermal deposits recording a combined production in excess of 11 million ounces.
Gold mineralization in the Hokusatsu region is localized along an 80-kilometre-long, arcuate, northeast to northerly trending volcanic front west of the Kagoshima graben, and bound by the Kushikino mine in the west and the Fuke mine in the north. Low sulphidation epithermal deposits in the region are characterized by distinctive Bouguer gravity-high anomalies and gradients related to doming of the underlying Cretaceous basement. The company has utilized this key feature, among others, to expand its comprehensive coverage over the highly prospective Hokusatsu region.
Onoyama-Yamagano project
The Onoyama-Yamagano project is located along the Hokusatsu volcanic front north of the company’s Ohra-Takamine and Barrick Alliance Mizobe-Onoyama projects, and south of the historic Yamagano gold mine, which produced in excess of 910,000 ounces of gold at a grade of 17.4 grams per tonne. The Yamagano vein system straddles a significant gravity-high feature and has an approximately 400-year history of underground mining. Project scale gravity surveying completed by the Barrick Alliance has defined an area of gravity anomalism approximately five kilometres west of the Yamagano mine. The newly defined gravity anomaly is covered by volcanic rocks which are younger than the host rocks of the Yamagano veins and may therefore cover mineralization related to the gravity feature. The nine new applications were positioned to fully cover the western flank of this gravity feature as epithermal vein deposits in the region are generally hosted on the western margins of gravity anomalies. With the inclusion of the nine new applications the Onoyama-Yamagano project now comprises a total 12,049.4 hectares.
Mizobe project
The Mizobe project, which collectively includes the Mizobe, Mizobe first extension applications and the nine newly accepted Mizobe West second extension applications now comprises a total area of 7,579.5 hectares. The Mizobe project is located in the southeast corner of the Hokusatsu region covering an area of gold and antimony anomalism associated with an extensive gravity-high feature that runs northwest through the Mizobe project and into the northeast of the Ohra-Takamine project. In the eastern part of the Mizobe project historic mining activities were focused on antimony mineralization at the Semari and Chuzono mines. Barrick Alliance results reported in a company news release dated Sept. 30, 2020, discussed strong gold anomalism associated with antimony bearing breccias and banded quartz veins in drainages across the project, indicating exposure of the upper portions of a potentially extensive epithermal system.
Project scale gravity surveying by the Barrick Alliance has further defined the shape of the extensive gravity feature that runs through the Mizobe and in the Mizobe-Onoyama projects. Gold and pathfinder element anomalous rock float including sinter sampled in drainages on the west of Mizobe, and the southwest the Mizobe-Onoyama project indicated the need to expand coverage over the southwestern margins of this gravity feature. This has now been achieved with the acceptance of these nine new applications.
As the Barrick Alliance programs advance, the company will continue to expand the portfolio based on the identification of key prospectivity indicators throughout the gold provinces of Japan.
Qualified person
The technical information in this news release has been reviewed and approved by Japan Gold’s vice-president of exploration, Andrew Rowe, BAppSc, FAusIMM, FSEG, who is a qualified person as defined by National Instrument 43-101.
About Japan Gold Corp.
Japan Gold is a Canadian mineral exploration company focused solely on gold exploration across the three largest islands of Japan: Hokkaido, Honshu and Kyushu. The company has a country-wide alliance with Barrick Gold to jointly explore, develop and mine certain gold mineral properties and mining projects. The company holds a portfolio of 31 gold projects which cover areas with known gold occurrences, a history of mining and are prospective for high-grade epithermal gold mineralization. Japan Gold’s leadership team represent decades of resource industry and business experience, and the company has recruited geologists, drillers and technical advisers with experience exploring and operating in Japan.
Kootenay joint venture plans exploration at Cervantes
Kootenay Silver Inc.’s exploration program has been approved by the Cervantes joint venture. The plan calls for a two-phase, $1.13 million CDN exploration program in 2021 for the Cervantes porphyry gold-copper property in Sonora, Mexico. The first phase calls for an $85,000 program of sampling and mapping. The second phase is a $1.05 million dollar drilling program to start sometime in the fall. Aztec and Kootenay recently formed a 65/35 joint venture (“JV”) respectively and the JV Management Committee met last week to review and approve the 2021 program as detailed by the operator in an Aztec news release today and para phrased below.
The JV plans to commence work in the first quarter on a Phase 1, $85,000 program of soil and rock sampling and geological mapping (525 soils and 150 rocks will be analyzed) to extend the 100 meter (m) by 100m geological and geochemical grid to the north, west and east boundaries of the property. Mapping will focus on detailed lithological, structural, and alteration mapping of the California, California North, and Estrella targets.
Subject to the results from Phase 1 and available funding, the JV plans to initiate a Phase 2, $1.05 million, 22 hole, 5,000m reverse circulation (“RC”) drill program during the late third quarter of 2021. Four main targets will be tested.
At the California target, previously discovered extensive porphyry gold-copper mineralization (drill intercepts up to 0.77 gpt gold over 160m), the JV will drill 14 infill and step-out holes at a 50m spacing to expand and define the area of mineralization, followed by two 500m deep holes to test the depth extent of the strong IP chargeability anomaly
At the California North prospect, one hole will test the coincident IP chargeability/gold-copper-molybdenum anomaly
At the Jasper prospect, one hole will test the outcropping copper mineralization and copper-molybdenum anomaly
At the Purisima East target, four holes will test the high-grade gold mineralization in the Glory Hole mine working and coincident IP chargeability and gold-copper-molybdenum anomaly within a breccia along the rim of a porphyry intrusion
The primary objectives of the two phase 2021 exploration program are to better define the open pit, heap leach gold potential of the porphyry oxide cap at California, evaluate the potential for deeper copper-gold porphyry sulfide mineralization underlying the oxide cap, test for north and west extensions of the California mineralization at California North and Jasper, and assess the breccia potential of Purisima East.
Cervantes Project Overview
Cervantes is a highly prospective porphyry gold-copper-molybdenum property located in southeastern Sonora state, Mexico. The project lies 160km east of Hermosillo, Sonora, Mexico within the famous Laramide porphyry copper belt approximately 265km southeast of the Cananea porphyry copper-molybdenum mine (Grupo Mexico). Cervantes also lies along an east-west trending gold belt 60km west of the Mulatos epithermal gold mine (Alamos Gold), 45km west of the La India mine (Agnico Eagle), and 40km northwest of Santana gold deposit (Minera Alamos).
Large well-located property (3,649 hectares) with good infrastructure, road access, local town, all private land, water wells on property, grid power nearby
Seven prospective mineralized zones related to high level porphyries and breccias along a 7.0km east-northeast corridor with multiple intersecting northwest structures
Distinct geophysical anomalies, California target marked by high magnetic and low resistivity anomalies, high radiometric and chargeability anomalies responding to pervasive alteration
Extensive gold mineralization at California zone, 118 soil samples average 0.44 gpt gold over 900m by 600m area, trench rock-channel samples up to 0.47 gpt gold over 222m
Already drilled the first discovery hole at the California zone, intersected gold oxide cap to a classic gold-copper porphyry deposit, drill results up to 0.77 gpt gold over 160m
Excellent gold recoveries from preliminary metallurgical tests on drill core from California zone; oxide gold recoveries in bottle roll tests range from 75% to 87%
California geophysical anomaly wide open laterally and at depth, IP chargeability strengthens and broadens to >500m depth over an area 1100m by 1200m
Three-Dimensional IP Survey conducted in 2019 extends strong chargeability anomalies to the southwest covering Estrella, Purisima East, and Purisima West, coinciding well with alteration and Au-Cu-Mo soil geochemical anomalies, all undrilled.
California Target
In 2017-18, while earning into the property, Aztec completed a Phase 1, 17 diamond core hole drill program, totaling 2,675m (see news release dated June 26, 2018). Phase 1 drilling tested the California target 900 m by 600 m gold-in-soils anomaly that averaged 0.44gpt covering hydrothermal breccias within a quartz feldspar porphyry stock intruding Paleozoic siliciclastic sediments.
The Phase 1 drill program consistently intersected an oxidized gold cap to a porphyry-type gold-copper-silver system at California, including multiple 100+ meter widths of exceeding 0.40 gpt gold, spanning an 800m length and a 200m breadth, to a maximum vertical depth of 150m. The area tested by drilling represents only 30% of the surface gold soil anomaly.
Mineralization at the California zone is open in all directions. Highlights of the 2017-18 Phase 1 drill program are as follows:
Preliminary metallurgical tests on California drill cores were conducted in 2019 (see news release dated March 12, 2019). Drill core samples were grouped into 4 separate types of mineralization: Oxide 1, Oxide 2, Mixed Oxide/Sulfide and Sulfide. The preliminary results of bottle roll tests showed excellent potential for heap leach gold recovery, as follows:
85.1% recovery on 2.0mm material and 94.3% on 75-micron material in sample Oxide 1
87.7% recovery on 2.0mm material and 94.2% on 75-micron material in sample Oxide 2
77.9% recovery on 2.0mm material and 89.0% on 75-micron material in sample Mixed Oxide/Sulphide
51.2% recovery on 2.0mm material and 78.7% on 75-micron material in sample Sulphide
Additional Targets
Purisima East – outcropping gossans, altered and mineralized diatreme breccias and porphyry intrusions marked by a 700m by 600m geochemical soil anomaly in 193 samples that average 0.25 gpt gold, a small historic ‘glory hole’ mine where rock chip sampling returned high-grade mineralization up to 44.6 gpt gold.
Estrella – outcrops of gossan and sulfides in silicified Paleozoic sediments near quartz porphyry dikes with rock chip samples up to 3.9 gpt gold and 2,010ppm copper.
Purisima West – a mirror image of Purisima East in size and type of gossans, altered and mineralized breccias and intrusions in association with gold and copper soil anomalies.
Jasper – 2017 trenching returned skarn/replacement-type mineralization up to 0.52% copper and 0.62 gpt gold over a 92.4m length.
California North – coincident IP chargeability and gold-copper-molybdenum soil geochemical anomalies may be a north extension of the California target
Other targets – porphyry alteration and geochemical soil anomalies mark the Jacobo and Brasil prospects but more work is required to expand and define these targets.’
James McDonald, B.Sc., P.Geo., is the Qualified Person for Kootenay Silver who reviewed and approved the technical disclosures in this news release.
About Kootenay Silver Inc.
Kootenay Silver Inc. is an exploration company actively engaged in the discovery and development of mineral projects in the Sierra Madre Region of Mexico and in British Columbia, Canada. Supported by one of the largest junior portfolios of silver assets in Mexico, Kootenay continues to provide its shareholders with significant leverage to silver prices. The Company remains focused on the expansion of its current silver resources, new discoveries and the near-term economic development of its priority silver projects located in the states of Sonora, Sinaloa and Chihuahua, Mexico, respectively.
Canada Silver Cobalt Works Inc. completed a hole-to-hole induced polarization study earlier this month. The study was conducted on the newly discovered, visually high-grade silver vein intersected in hole CS-20-39.
Down hole Geophysics was conducted from January 4 th -12th 2021.
The holes used for the hole-to-hole pairing contained zones of cobalt and silver veining.
Encouraging results delineated a good response over the 17m mineralized zone.
This study produced testable results that are being investigated by wedge drilling that is now underway. The team is working closely with the geophysicists to interpret results from the initial wedging while a more comprehensive action plan is being developed to delineate new targets in areas where we have already qualified the need for enhanced resolution of existing veins. This initiative will also open up new ground.
A larger geophysical project is also in development that will utilize the Distributed Array System, “DasVision” which will incorporate a bigger geographic area. It is anticipated the study will lead to injecting current in both boreholes and at surface in order to provide better resolution at depth.
Matt Halliday, President commented, “The Company is taking full advantage of new geophysical techniques while maximizing the utility of existing technologies. As the technical team continues to advance and better understand this deposit model, we will have a comprehensive toolbox to facilitate the generation of the best possible targets. New IP techniques will be part of this toolbox that will also include advanced cameras, structural technology including oriented core and directional drilling, and various geochemistry techniques.”
Location
The Castle Property is 15 km east of Pan American Silver’s Juby gold deposit, 30 km due south of Alamos Gold’s Young-Davidson mine, 75 km southwest of Kirkland Lake Gold’s Macassa Complex, and 100 km southeast of new gold discoveries in the Timmins West area.
Qualified Person
The technical information in this news release was prepared under the supervision of Mr. Matthew Halliday, P.Geo., (APGO) President of Canada Silver Cobalt Works Inc., a qualified person in accordance with National Instrument 43-101.
About Canada Silver Cobalt Works Inc.
Canada Silver Cobalt Works released the first-ever resource in the Gowganda Camp and greater Cobalt Camp. In May 2020. A total of 7.56 million ounces of silver in Inferred resources comprising very high-grade silver (8,582 grams per tonne un-cut or 250.2 oz/ton) in 27,400 tonnes of material from two sections (1A and 1B) of the Robinson Zone beginning at a vertical depth of approximately 400 meters. The discovery remains open in all directions (1A and 1B are approximately 800 meters from the east-trending Capitol Mine workings) (mineral resources that are not mineral reserves do not have demonstrated economic viability) (refer to Canada Silver Cobalt Works Press Release May 28, 2020. Report reference: Rachidi, M. 2020, NI 43-101 Technical Report Mineral Resource Estimate for Castle East, Robinson Zone, Ontario, Canada , with an effective date of May 28, 2020 and a signature date of July 13, 2020.
Canada Silver Cobalt’s flagship Castle mine and 78 sq. km Castle Property features strong exploration upside for silver, cobalt, nickel, gold, and copper in the prolific past producing Gowganda high-grade Silver District of Northern Ontario. With underground access at Castle, a pilot plant to produce cobalt-rich gravity concentrates on site, a processing facility (TTL Laboratories) in the town of Cobalt, and a proprietary hydrometallurgical process known as Re-2OX for the creation of technical grade cobalt sulphate as well as nickel-manganese-cobalt (NMC) formulations, Canada Silver Cobalt is strategically positioned to become a Canadian leader in the silver-cobalt space.
Holes P005-P008 have now been completed. Drilling has continued to progress smoothly, and core recovery continues to be excellent. Assay return slowed over the Christmas break and the Company expects to begin receiving results from the lab shortly, continuing for the next several weeks.
Fenixoro CEO John Carlesso stated: “The month of January was extremely productive and we anticipate a busy upcoming several weeks receiving and analyzing assay results from Holes 5,6,7 and 8. As we build on the preliminary results received to date, we expect that these new results will provide greater confirmation of the surface extent, depth continuity, and grade of the veins in this initial drill area, which represents less than one-third of the known mineralization of the property package. Our team remains very encouraged with how the program is progressing.
Phase 1 drilling began in early October of 2020 and has been focused on the most accessible part of the property which has over 40 mapped veins developed in northwest and east-west trending corridors 600-1200 meters long and 300-400 meters wide. Press releases dated November 24 and December 17, 2020 presented results from the first four holes which included numerous high grade vein intersections, principally on the northwest trending family of veins, as well as thicker intervals of lower grade gold mineralization on the east-west trend (incl. 7.75m @ 1.53 g/t in hole P004). Intercepts up to 71 g/t gold extended the known vertical range of high grade gold at Abriaqui to over 1000 meters in outcrop and drill holes. The mineralization remains open at depth. Vein mineralization is well developed in all rock types, including the diorite stock and hornfels in sediments up to 400 meters outward from the intrusive contact.
Hole P005 tested the depth extension of the main northwest trend 400 meters northwest of P001. P006, P007, and P008 tested the northern end of the vein system. P008 was drilled at a steeper angle to get underneath unanticipated historical mine workings on four near surface veins which were encountered in the upper parts of P005 and P006. Numerous visually mineralized quartz-carbonate-sulfide veins and breccia zones were intersected in these holes similar to those seen in P001 that assayed high-grade gold.
Technical Information
Stuart Moller, Vice President Exploration and Director of the Company and a Qualified Person for the purposes of NI 43-101 (P.Geo, British Colombia), has prepared or supervised the preparation of the technical information contained in this press release. Mr. Moller has more than 40 years of experience in exploration for precious and other metals including ten in Colombia and is a Fellow of the Society of Exploration Geologists.
Drill core sampling is done in accordance with industry standards. The HQ and NQ diameter core is sawed, and half core samples are submitted to the laboratory. The other half core along with laboratory coarse reject material and sample pulps are stored in secure facilities on site and/or in the sample prep lab. Following strict chain of custody protocols, the samples are driven to the ISO 17025:2017 certified ALS Laboratory sample preparation facility in Medellin and ALS ships the prepared pulps to their assay laboratory in Lima, Peru. Blanks, duplicates, and certified reference standards totaling 15% of the total samples are inserted into the sample stream. To date, no material quality control issues have been detected. Gold is analyzed using 50 gram fire assays and the additional elements are analyzed by ICP with appropriate follow-up for over- limits.
Reported grade intervals are calculated using uncut gold values at a minimum grade cutoff of two grams per tonne gold. The two gram level was chosen as being reasonable for reporting purposes but it has no necessary relation to potential future resource/reserve calculations. The current database is too small to calculate statistically valid levels for cutting of high grade. Maximum sample length is one meter and the length of sub-cutoff grade core contained within a given interval is restricted to one sample length. Reported sample and interval widths are based on lengths of individual samples in core and do not necessarily represent true widths of mineralization. True widths will generally be less than the quoted interval lengths.
The currently reported results may not represent full results for a given drill hole as some additional sampling may be required. All material drill results will be publicly reported in due course.
About Fenixoro Gold Corp.
Fenixoro Gold is a Canadian company focused on acquiring gold projects with world class exploration potential in the most prolific gold producing regions of Colombia. Fenixoro’s flagship property, the Abriaqui project, is located 15 km west of Continental Gold’s Buritica project in Antioquia State at the northern end of the Mid-Cauca gold belt, a geological trend which has seen multiple large gold discoveries in the past 10 years including Buritica and Anglo Gold’s Nuevo Chaquiro and La Colosa. As documented in “NI 43-101 Technical Report on the Abriaqui project Antioquia State, Colombia” (December 5, 2019), the geological characteristics of Abriaqui and Buritica are very similar. The report also documents the high gold grade at Abriaqui with samples taken from 20 of the veins assaying greater than 20 g/t gold. A Phase 1 drilling program has begun at Abriaqui following the completion of surface and underground geological mapping and sampling, as well as a preliminary magnetometry survey.
Fenixoro’s VP of Exploration, Stuart Moller, led the discovery team at Buritica for Continental Gold in 2007-2011. At the time of its latest report, the Buritica Mine contains measured plus indicated resources of 5.32 million ounces of gold (16.02 Mt grading 10.32 g/t) plus a 6.02 million ounce inferred resource (21.87 Mt grading 8.56 g/t) for a total of 11.34 million ounces of gold resources. Buritica began formal production in November 2020 and has expected annual average production of 250,000 ounces at an all-in sustaining cost of approximately US$600 per ounce. Resources, cost and production data are taken from Continental Gold’s “NI 43-101 Buritica Mineral Resource 2019-01, Antioquia, Colombia, 18 March, 2019”). Continental Gold was recently the subject of a takeover by Zijin Mining in an all-cash transaction valued at C$1.4 billion.
Alpha Lithium increases bought deal to $20-million
ALPHA LITHIUM INCREASES “BOUGHT DEAL” PUBLIC OFFERING TO $20,000,000
Alpha Lithium Corp. has amended the agreement with Echelon Wealth Partners Inc. and Leede Jones Gable Inc., as co-leads and joint bookrunners, pursuant to which the underwriters have increased the size of the previously announced short form prospectus offering of units of the company at a price of 81 cents per unit. Under the amended terms, the underwriters have agreed to purchase, on a bought deal basis, 24.7 million units for gross proceeds to the company of $20,007,000. The remaining terms remain unchanged.
The offering is expected to close on or about Feb. 16, 2021, or such other date as the company and the underwriters may agree, and is subject to customary closing conditions, including the approval of the securities regulatory authorities and the TSX Venture Exchange.
About Alpha Lithium Corp.
Alpha Lithium is a growing team of industry professionals and experienced stakeholders focused on the development of the Tolillar salar. The company has assembled a 100-per-cent ownership of what may be one of Argentina’s last undeveloped lithium salars, encompassing 27,500 hectares (67,954 acres) and neighbouring multibillion-dollar lithium players in the heart of the renowned Lithium Triangle. Other companies in the area that are exploring for lithium brines or are currently in production include: Galaxy Lithium, Livent and Posco at the Hombre Muerto salar; Orocobre at the Olaroz salar; Eramine SudAmerica SA at the Centenario salar; and Gangfeng and Lithium Americas at the Cauchari salar.
We seek Safe Harbor.
Metallic Minerals to begin trading on OTCQB Jan. 26
Metallic Minerals Corp. has received approval from OTC Markets Group Inc. for trading on the OTCQB Venture Market, under the symbol MMNGF, as of Jan. 26, 2021. The company’s common shares will continue to trade on the TSX Venture Exchange under the symbol MMG.
The company’s upgraded listing from the OTC Pink Sheets to the OTCQB is anticipated to provide improved liquidity and, by enhancing the overall trading experience for current and potential United States investors, add to the company’s shareholder base. By meeting and maintaining the stricter eligibility requirements of the OTCQB listing, Metallic Minerals benefits from blue sky exemptions and certain U.S. state securities laws, which have the potential to further enhance trading volumes through an expansion of investment advisers’ ability to recommend investments to their U.S. clients.
Greg Johnson, chief executive officer and chairman of Metallic Minerals, stated: “Uplisting our common shares is an important step in the advancement of Metallic Minerals, particularly as we have seen a marked increase in interest from U.S. precious metals investors against the backdrop of increasing silver prices over the past one-half years. With a limited number of primary silver exploration opportunities, and particularly those in top North American mining jurisdictions, we are confident this new visibility will improve trading volumes and liquidity as we continue to introduce Metallic Minerals to new investors in the U.S.”
StreetSmart Live! event
Metallic Group chief executive officers Greg Johnson of Metallic Minerals, Michael Rowley of Group Ten Metals and Tim Johnson of Granite Creek Copper will be joining mining industry experts John Feneck, president of Feneck Consulting LLC, and John Newell, independent analyst and portfolio manager, for a live event to discuss upcoming macro-economic and geo-political catalysts, opportunities in the mineral exploration industry, and the specific opportunities within the Metallic Group of Companies.
The event will be hosted by Streetwise Reports as part of its StreetSmart Live! series and will take place on Tuesday, Jan. 26, 2021, at 10 a.m. PST.
About Mr. Newell
Mr. Newell is the portfolio manager for the Cordilleran Resources 2021 Flow-Through LP and president and chief executive officer of Golden Sky Minerals Corp. He has 38 years of experience in the investment industry acting as an officer, director, portfolio manager and investment adviser with some of the largest investment firms in Canada, including Scotia McLeod, CIBC Wood Gundy and Richardson Greenshields (RBC Capital Markets). Mr. Newell is a specialist in precious metal equities and related commodities and follows a disciplined proprietary approach incorporating equity research, analytical frameworks and risk controls to evaluate and select long and short stocks primarily from the Canadian small-cap and mid-cap coverage. Many large, mid-cap and junior precious metal companies use his technical charts.
About Mr. Feneck
Mr. Feneck is a portfolio manager and consultant at Feneck Consulting. He began his career in 1992 as an equity analyst on the Merrill Lynch global allocation fund (MALOX). From 1993 to 2019, Mr. Feneck was a senior executive for mutual fund and exchange-traded fund (ETF) providers, spending most of his career at Merrill Lynch Funds (now Blackrock) and JP Morgan Chase Funds. He was ranked No. 1 in both gross and net sales once at Merrill Lynch and three times at JP Morgan Chase, out of 40 senior executives. Mr. Feneck has conducted over 250 seminars and has been part of an investment roundtable at four global events. He has also been a regular and recent contributor to numerous other media channels, including Kitco.
Mr. Feneck was a member of the precious metals team at Sprott in 2017 and has developed a compelling record based on a proprietary methodology which combines technical analysis with public information gathered from direct interaction with senior management of commodities companies.
About Metallic Minerals Corp.
Metallic Minerals is a growth-stage exploration company, focused on high-grade silver and gold in underexplored brownfields mining districts. Its objective is to create shareholder value through a systematic, entrepreneurial approach to exploration in the Keno Hill silver district, La Plata silver-gold-copper district and Klondike gold district through new discoveries and advancing resources to development. All three districts have seen significant mineral production and have existing infrastructure, including power and road access. Metallic Minerals is led by a team with a record of discovery and exploration success on several major precious and base metal deposits, as well as having large-scale development, permitting and project financing expertise.
Galway Metals drills four m of 19.5 g/t Au at Clarence
Galway Metals Inc. has released full and partial assay results from eight new holes plus results from two holes that had some assays pending in the 650-metre gap between the Richard and George Murphy zones (GMZ) at the company’s Clarence Stream project in southwest New Brunswick, Canada. The latest results are highlighted by likely extensions to the east of previously identified veins and new veins to the north, which are denoted as new 1, 2 or 3.
Hole 128 had pending assays added to the previously released results with the full intersect now returning 3.5 grams per tonne (g/t) Au over 40.0 metres (m), including the previously released 5.3 g/t Au over 25.5 m, which includes 54.6 g/t Au over 0.5 m, 20.9 g/t Au over 2.5 m and 13.7 g/t Au over 2.4 m, starting at a vertical depth of 190 m below surface. It is 92 m below hole 125, but is now interpreted to be a different vein. Hole 125 intersected 17.0 g/t Au over 5.5 m, including 163.0 g/t Au over 0.5 m with visible gold. Hole 128 intersected three additional veins: 17.9 g/t Au over 2.0 m (new 2), including 33.4 g/t Au over 0.5 m, plus 1.1 g/t Au over 8.4 m (new 1), plus previously reported 0.5 g/t Au over 13.0 m, starting at vertical depths of 375 m, 281 m and 63 m, respectively.
Hole 133 intersected three veins: 9.5 g/t Au over 6.5 m, including 27.2 g/t Au over 1.0 m, plus 2.2 g/t Au over 15.5 m, including 30.2 g/t Au over 0.7 m, plus 10.0 g/t Au over 3.0 m (new 2), including 18.7 g/t Au over 1.0 m, starting at vertical depths of 148 m, 172 m and 319 m, respectively. The 3.5 g/t Au over 40.0 m from hole 128 is thought to be the same zone as the 9.5 g/t Au over 6.5 m and 2.2 g/t Au over 15.5 m, with 72 m and 47 m between them. Assays are pending for 17.0 m of the 18.5 m interval between the 9.5 g/t Au over 6.5 m and 2.2 g/t Au over 15.5 m intersects.
Hole 130 intersected four veins: 75.9 g/t Au over 1.1 m (new 2), plus 1.3 g/t Au over 25.0 m (new 3) (included to show the scope of mineralization in this new vein; used the 0.42 g/t Au lower cut-off for pit-constrained mineralization but the depth likely precludes its inclusion in a pit), including 18.5 g/t Au over 0.65 m, plus shallower intersects returning 0.6 g/t Au over 30.0 m, including 5.3 g/t Au over 1.0 m, plus 0.5 g/t Au over 17.0 m, including 1.6 g/t Au over 1.0 m, starting at vertical depths of 420 m, 472 m, 71 m and 137 m, respectively. If the intersections are dipping south similar to the Richard vein interpretations, then the 10.0 g/t Au over 3.0 m from hole 133 is thought to be a new vein, and the same as the 75.9 g/t Au over 1.1 m from hole 130 and the 17.9 g/t Au over 2.0 m from hole 128. With these intersects, this vein has now been drilled over 174 m along strike and remains open, as are all veins discussed herein. These new veins are close to the intrusive that is thought to control mineralization. The intersect hosing 18.5 g/t Au over 0.65 m, starting at 472 m below surface, is the deepest in any of the four zones not in resource at Clarence Stream, including the Adrian, GMZ, Richard and Jubilee zones. The South zone has been intersected below 500 m.
Hole 136 intersected 19.5 g/t Au over 4.0 m (new 1), including 51.6 g/t Au over 1.0 m, with the rest of the hole pending, starting at a vertical depth of 273 m below surface. This is thought to be another new vein that lines up with the 1.1 g/t Au over 8.4 m in hole 128.
Robert Hinchcliffe, president and chief executive officer of Galway Metals, said: “The new veins contain some nice high grades. We’ll expand out from them and follow up other high-priority targets to increase the upcoming resource. There are simply so many obvious potential extensions to known and recently discovered veins that the company has decided to push out the resource update by a few months. To expedite this effort, Galway recently added one drill rig at Clarence Stream to bring the total to six and will add a seventh in February as we continue our fully funded, 100,000 m drill program to be completed by year-end. Galway’s aim is to not only expand the existing zones, but to also continue making new discoveries to further demonstrate that Clarence Stream is an important new gold district in North America.”
There now appears to be six vein zones present in the area of the current drilling, with three interpreted to correlate with the previously identified Richard zone horizons; the other three appear to be new. The 3.5 g/t Au over 40.0 m in hole 128 appears to line up best and is 232 m east of the northernmost vein that Galway intersected at the time of the discovery of the Richard zone, which returned 5.4 g/t Au over 11.0 m. The 3.5 g/t Au over 40.0 m is also located 262 m northeast of the previous eastern Richard limit defined by the discovery hole intersection that returned 7.3 g/t Au over 36.7 m. Galway is continuing to fill in the 650 m gap between the Richard zone and the GMZ. All veins appear to be subparallel to the granite to the north and mimics its dip at about 60 degrees to 65 degrees. Assays have been returned for five additional holes to the east of, plus one drilled south of, the highlight holes noted above, with intersections ranging up to 7.5 g/t Au over 1.05 m, 0.6 g/t Au over 10.0 m and 0.5 g/t Au over 10.0 m. In general, the better results to date are from steeper holes.
ASSAY RESULTS
Hole ID From (m) To (m) Intercept (m) Au (g/t)
GWM-20BL-136 61.00 291.00 Pending
291.00 295.00 4.00 19.5
including 294.00 295.00 1.00 51.5
303.00 321.00 Pending
324.00 446.00 Pending
GWM-20BL-133 56.00 136.00 Pending
137.00 138.00 1.00 1.3
139.00 140.00 1.00 0.6
150.50 157.00 6.50 9.5
including 153.00 154.00 1.00 27.2
157.00 174.00 Pending
175.50 191.00 15.50 2.2
including 175.50 176.20 0.70 30.2
203.00 204.50 1.50 0.5
260.00 284.00 Pending
328.00 331.00 3.00 10.0
including 330.00 331.00 1.00 18.7
337.00 353.00 Pending
GWM-20BL-130 72.00 102.00 30.00 0.6
including 73.00 74.00 1.00 5.3
95.50 97.00 1.50 1.3
113.50 114.50 1.00 0.7
117.00 118.00 1.00 0.4
132.00 149.00 17.00 0.5
including 132.00 133.00 1.00 1.4
including 141.00 142.00 1.00 1.6
149.00 225.00 Pending
237.90 378.60 Pending
383.00 384.50 1.50 1.0 (1)
388.00 388.50 0.50 1.1 (1)
430.00 431.00 1.10 75.9
433.00 435.00 2.00 1.7 (1)
476.00 501.00 25.00 1.3 (1)
including 479.00 479.65 0.65 18.5
including 497.80 498.30 0.50 4.4
GWM-20BL-128 64.00 77.00 13.00 0.5 (2)
including 64.00 65.00 1.00 1.9 (2)
89.50 91.00 1.50 0.6
128.00 129.00 1.00 1.6
193.50 233.50 40.0 3.5 VG
including 208.00 233.50 25.50 5.3 VG (2)
including 214.40 214.90 0.50 54.6 (2)
including 220.90 221.50 0.60 8.3
including 224.10 226.50 2.40 13.7
including 231.00 233.50 2.50 20.9 (2)
288.00 296.40 8.40 1.1
including 295.00 296.40 1.40 2.4
299.00 299.60 0.60 1.0
357.00 359.00 2.00 17.9
including 358.00 358.50 0.50 33.4
494.00 494.60 0.60 0.5 (1)
GWM-20BL-126 59.00 69.00 10.00 0.6
133.00 134.00 1.00 1.2
267.50 269.00 1.50 1.5
GWM-20BL-125 60.00 61.00 1.00 0.7 (2)
64.00 67.15 3.15 0.44 (2)
135.00 135.50 0.50 0.6
137.00 141.00 4.00 0.5
145.00 146.00 1.00 1.0
150.00 155.50 5.50 17.0 (2)
including 154.00 154.50 0.50 10.8 (2)
including 154.50 155.00 0.50 163.0 VG (2)
160.00 162.00 2.00 0.6
296.00 298.00 1.50 1.8
340.00 350.00 10.00 0.5
GWM-20BL-123 233.00 238.00 5.00 0.7
302.00 303.00 1.00 0.4
304.00 304.50 0.50 0.7
GWM-20BL-121 35.00 36.60 1.60 1.3
65.00 67.00 2.00 0.6
70.00 71.00 1.00 0.8
130.50 133.50 3.00 0.7
GWM-20BL-119 43.00 44.00 1.00 0.4
46.00 47.00 1.00 0.6
67.50 70.00 2.50 0.6
76.00 79.00 3.00 0.8
82.00 83.50 1.50 0.5
108.95 110.00 1.05 7.5
155.00 240.00 Pending
301.00 314.00 Pending
GWM-20BL-117 66.00 67.00 1.00 2.4
90.90 92.00 1.10 0.5
121.00 124.10 3.10 1.0
including 122.00 122.50 0.50 2.4
142.00 143.50 1.50 1.7
189.00 190.00 1.00 0.8
(1) Intersection used 0.42 g/t Au for the bottom cut-off as
per pit-constrained resources but is at likely too much
depth. Shown to indicate scope of mineralization (TW means
true widths, which are calculated -- sectional measuring
may give slightly different numbers). True widths are
unknown if not noted. VG means visible gold, and 0.42 g/t
Au was used for the bottom cut-off.
(2) Previously reported
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 and Richard zones.
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. Richard zone contains multiple zones of quartz veining with sulphides and sericite alteration. In general, mineralization at Clarence Stream consists of 10 per cent to 70 per cent quartz stockworks and veins with 1 per cent to 5 per cent fine pyrite plus pyrrhotite plus arsenopyrite plus stibnite in sericite-altered sediments. The Jubilee mineralization consists of 2 per cent 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-kilometre trend that hosts the GMZ, Richard and Jubilee zones 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 on the Galway Metals 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.
About Galway Metals Inc.
Galway Metals is well capitalized with two gold projects in Canada, Clarence Stream, an emerging gold district in New Brunswick, and Estrades, the former-producing, high-grade, volcanogenic massive sulphide mine in Quebec. The company began trading on Jan. 4, 2013, after the successful spinout to existing shareholders from Galway Resources following the completion of the $340-million (U.S.) sale of that company. With substantially the same management team and board of directors, Galway Metals is keenly intent on creating similar value as it had with Galway Resources.
We seek Safe Harbor.
Eastern Platinum closes $11.78-million rights offering
Eastern Platinum Ltd. has completed the previously announced rights offering to its shareholders (see news release of Dec. 11, 2020), subject to final approval of the Toronto Stock Exchange (the TSX) and the Johannesburg Stock Exchange (the JSE).
Eastern Platinum issued 36,841,741 common shares of the company at a price of 32 cents per common share for rights exercised on the TSX and 3.77136 South African rands per common share for rights exercised on the JSE. The company is very pleased to have raised total gross proceeds of approximately $11,788,835 (TSX: $11,364,188 and JSE: 5,010,825 rands).
A total of 32,808,630 common shares were issued under the basic subscription privilege, and an additional 4,033,111 common shares were issued under the additional subscription privilege. As of the closing date, 137,480,773 common shares of Eastern Platinum are issued and outstanding. No common shares were issued under a standby commitment, and no fees or commissions were paid in connection with the distribution.
To the knowledge of the company, after reasonable inquiry, no person who was not an insider of Eastern Platinum became an insider as a result of the distribution under the rights offering.
Further to the rights offering circular of the company dated Dec. 11, 2020, the company confirms that Ka An Development Co. Ltd., an insider by virtue of beneficial ownership of, or control or direction over, directly or indirectly, securities of the company carrying more than 10 per cent of the voting rights attached to all the company’s outstanding voting securities, has exercised its basic subscription privilege to acquire 22,134,536 common shares and its additional subscription privilege to acquire 730,928 common shares, for a total of 22,865,464 common shares, bringing Ka An’s holdings after the rights offering to 45 million common shares of the company, representing 32.73 per cent of the total issued and outstanding common shares of the company.
The company intends to use the net proceeds from the rights offering to commence and/or complete various projects as described in the rights offering circular to expand and increase Eastern Platinum’s revenue potential. Eastern Platinum will provide a more detailed and definitive update in regard to the specific projects and priorities early in February, 2021.
COVID-19
South Africa remains at alert Level 3 regarding COVID-19 cases. The company continues to follow the health guidelines of the government of South Africa. The retreatment project remains in full operation, and continues to produce and transport chrome and platinum group metal end products. The effects of COVID-19 are evolving and changing, and the consequences of a further increase in the alert level in South Africa, temporary shutdown of any operations or other related issues cannot be reasonably estimated at this time, but could potentially have material adverse effects on the company’s business, operations, liquidity and cash flows.
About Eastern Platinum Ltd.
Eastern Platinum owns, directly and indirectly, a number of platinum group metals (PGM) and chrome assets in the Republic of South Africa. All of the company’s properties are situated on the western and eastern limbs of the Bushveld complex, the geological environment that hosts approximately 80 per cent of the world’s PGM-bearing ore.
Operations at the Crocodile River mine currently include remining and processing its tailings resource, with an offtake of the chrome concentrate from the Barplats Zandfontein UG2 tailings facility and the processing and extraction of PGMs.
Serengeti, Sun receive B.C. court order for merger
Serengeti Resources Inc. and Sun Metals Corp. has obtained an interim order from the Supreme Court of British Columbia with respect to the previously announced proposed plan of arrangement, pursuant to which Serengeti will acquire all of the issued and outstanding shares of Sun Metals, on the basis of 0.215 of a postconsolidation (as defined below) Serengeti share for each Sun Metals share, which is 0.43 of a preconsolidation Serengeti share for each Sun Metals share on a preconsolidation basis. Each company will mail out a joint management information circular in connection with the holding of special meetings of the securityholders of Sun Metals, which will be held in accordance with the interim order, and shareholders of Serengeti to approve the Transaction and related matters. The meetings are scheduled to be held concurrently on February 26, 2021, with the record date for Serengeti shareholders and Sun Metals securityholders to receive notice of and vote at each of the Serengeti meeting and Sun Metals meeting having been set at January 15, 2021. Subject to receipt of all requisite approvals and waiver or satisfaction of all relevant conditions, closing of the Transaction is expected to be on or about March 4, 2021.
The Transaction will consolidate the contiguous copper-gold exploration and development assets of Kwanika and Stardust, both of which will benefit from operational synergies as the projects advance with a combined development strategy, along with the robust portfolio of British Columbia copper-gold assets held by the companies. The combined company will be well positioned and capitalized as a result of the recently completed $10,350,000 upsized subscription receipt financing of Sun Metals (the “Financing”) to take advantage of a strengthening copper market.
Upon completion of the Transaction, it is expected that Mark O’Dea will assume the role of Executive Chairman of Serengeti and the Serengeti board of directors will comprise Mark O’Dea, David Moore, Lewis Lawrick, Teodora Dechev, Sean Tetzlaff and Richard Bailes. David Moore will continue as Interim President and Chief Executive Officer until such time as a full time CEO is appointed, and Lauren McDougall will assume the role of Chief Financial Officer and Ian Neill the role of Vice President Exploration. Following the Transaction, current Sun Metals shareholders, not including holders of Sun Metals shares issued on conversion of the subscription receipts issued from the Financing, will hold approximately 40% of the combined company.
Serengeti Meeting
At the Serengeti special meeting of shareholders, shareholders will be asked to approve the Transaction. The Transaction resolution must be approved by an affirmative vote of a simple majority of the votes cast by Serengeti shareholders present in person or represented by proxy at the meeting.
In addition to approving the Transaction, Serengeti shareholders will be asked to approve resolutions to consolidate its common shares on a two for one basis (the “Consolidation”) and amend and restate its stock option plan (the “Amended Option Plan”) to, among other things, become a rolling 10% plan. Approval by Serengeti shareholders of these resolutions is a condition to closing the Transaction. Disinterested Serengeti shareholders will also be asked to approve resolutions adopting a deferred share unit plan (the “DSU Plan”) and a restricted share unit Plan (the “RSU Plan”). The Amended Option Plan, the DSU Plan and the RSU Plan are all subject to approval by the TSX Venture Exchange.
The Consolidation is anticipated to be completed immediately prior to closing of the Transaction. In addition to shareholder approval, the Consolidation is also subject to approval by the TSX Venture Exchange. Following the Consolidation, the 111,003,368 outstanding shares of Serengeti will be consolidated such that there will be approximately 55,501,684 outstanding shares, not including any Serengeti shares to be issued pursuant to the Transaction. Serengeti also intends to proceed with a name change in connection with the Transaction and Consolidation, which name change will be subject to TSX Venture Exchange approval. Further details with respect to the name change will be provided when available.
Further details with respect to the Transaction, the Consolidation, and the Amended Option Plan as well as the DSU Plan and RSU Plan will be outlined in a joint management information circular to be circulated to Serengeti shareholders in due course. The joint management information circular will also include instructions on how to vote and participate at the Serengeti meeting scheduled to be held on February 26, 2021.
Sun Metals Meeting
At the Sun Metals special meeting of securityholders, securityholders will be asked to approve the Transaction. The Transaction resolution must be approved by an affirmative vote of: (i) 66?% of the votes cast on the resolution by Sun Metals shareholders present in person or by proxy at the meeting; (ii) 66?% of the votes cast on the resolution by Sun Metals securityholders (voting as a single class) present in person or by proxy at the Sun Metals meeting; and (iii) a majority of the votes cast by Sun Metals shareholders present in person or by proxy at the meeting excluding for this purpose votes attached to Sun Metals shares held by certain persons as required under Multilateral Instrument 61-101 {ᦍ –} Protection of Minority Security Holders in Special Transactions.
Further details with respect to the Transaction will be outlined in a joint management information circular to be circulated to Sun Metals securityholders in due course. The joint management information circular will also include instructions on how to vote and participate at the Sun Metals meeting scheduled to be held on February 26, 2021.
Board Recommendations and Voting Support
The Transaction has been unanimously approved by the board of directors of both Serengeti and Sun Metals. Both boards of directors recommend that their respective shareholders and securityholders vote in favour of the Transaction. The Serengeti board of directors also recommends that Serengeti shareholders vote in favour of the Consolidation, the amendment to the Serengeti stock option plan as well as the DSU Plan and RSU Plan.
All of the directors and officers of Sun Metals, holding in aggregate 14.03% of the issued and outstanding shares of Sun Metals and 15.38% of the outstanding shares, options and warrants of Sun Metals, have entered into customary voting support agreements agreeing to vote in favour of the Transaction. All of the directors and officers and several large shareholders of Serengeti, holding in aggregate 27.32% of the issued and outstanding shares of Serengeti, have similarly entered into customary voting support agreements agreeing to vote in favour of the Transaction.
This announcement is for informational purposes only and does not constitute an offer to purchase, a solicitation of an offer to sell any shares or a solicitation of a proxy.
About Serengeti
Serengeti is a mineral exploration company managed by an experienced team of professionals with a solid track record of exploration success. The Company is currently advancing its majority-owned, advanced Kwanika copper-gold project and exploring its extensive portfolio of properties in north-central British Columbia. Additional information can be found on the Company’s website at http://www.serengetiresources.com.
About Sun Metals
Sun Metals is advancing its 100% owned flagship, high-grade Stardust Project located in north-central British Columbia, Canada. Stardust is a high-grade polymetallic Carbonate Replacement Deposit with a rich history. Sun Metals also owns the Lorraine copper-gold project, and the OK copper-molybdenum project.
Fiore Gold files NI 43-101 report for Pan
Fiore Gold Ltd. has filed a report, entitled “NI 43-101 Updated Technical Report on Resources and Reserves Pan Gold Project, White Pine County, Nevada.” The Technical Report, which is dated January 22, 2021 with an effective date of June 30, 2020, was prepared in compliance with National Instrument 43-101 – Standards for Disclosure for Mineral Projects ("NI 43-101") and is available under Fiore’s profile on SEDAR at http://www.sedar.com and on the Company's website at fioregold.com.
The Technical Report was prepared by SRK Consulting (U.S.) Inc. ("SRK"), APEX Geoscience Ltd., and Pro Solv Consulting, LLC. The following Qualified Persons ("QP") listed below have reviewed and verified that the technical information in respect of the Technical Report and the results announced in Fiore's news release on December 8, 2020: Michael Dufresne, P.Geo. with Apex Geoscience Ltd., Warren Black, M.Sc., P.Geo with Apex Geoscience Ltd., Justin Smith, P.E., RM-SME, with SRK, Deepak Malhotra, PhD, RM-SME, with Pro Solv Consulting, LLC, Valerie Sawyer, RM-SME with SRK, Fredy Henriquez, MSc., RM-SME, with SRK, and Michael Iannacchione, B.Sc., MBA, P.E. with SRK. Please refer to the technical report of the specific sections of the report for which QP's are responsible.
Corporate Strategy
Our corporate strategy is to grow Fiore Gold into a 150,000 ounce per year gold producer. To achieve this, we intend to:continue to grow gold production at the Pan Mine, while increasing the resource and reserve baseadvance exploration and development of the nearby Gold Rock projectacquire additional production or near-production assets to complement our existing operations
Tristar appoints Van Den Akker as independent director
Tristar Gold Inc. has appointed Jessica Van Den Akker to the board of directors as an independent director. Ms. Van Den Akker will also act as chairperson of the audit committee. Brian Irwin will be standing down from the board of directors but will continue to act as corporate secretary.
“First, I would like to thank Brian for all the years he has given this company, and I am glad we will still receive the benefit of his wisdom and experience through his role as corporate secretary,” said Nick Appleyard, Tristar’s president and chief executive officer. “Jessica’s addition to the board increases board independence and brings a skill set related to auditing and financial reporting that strengthens the board and, particularly, the audit committee.”
Ms. Van Den Akker has also been awarded 300,000 incentive stock options, granted for a five-year period starting on Jan. 18, 2021, with each option allowing the holder to purchase one common share of Tristar at an exercise price of 27 cents and vest immediately. On Dec. 18, 2020, as a new director, Eric Zaunscherb was also awarded 300,000 options for a five-year period with an exercise price of 24.5 cents.
Update on Castelo de Sonhos
The two reverse circulation rigs and one core rig are currently drilling at Castelo de Sonhos. The company has approximately 20,000 metres of drilling planned in the current 2021 program, the majority of which is exploration. The current impact of the pandemic is that the company is seeing slower assay turnaround from the laboratories, and international travel restrictions make it challenging to bring international experts to the site. This should not affect the company’s exploration activity drilling the new artificial intelligence generated targets but, if it continues, could cause a delay in the prefeasibility.
About Tristar Gold Inc.
Tristar Gold is an exploration and development company focused on precious metals properties in the Americas that have the potential to become significant producing mines. The company’s current flagship property is Castelo de Sonhos in Para state, Brazil. The company’s shares trade on the TSX Venture Exchange under the symbol TSG and on the OTCQX under the symbol TSGZF.
Moneta files technical report for Golden Highway
Moneta Porcupine Mines Inc. has filed the technical report covering the updated mineral resource estimate for the Golden Highway project, 110 kilometres east of Timmins, Ont.
Gary O’Connor, chief executive officer of Moneta, commented: “We are pleased to have filed the technical report that supports the recent mineral resource update on the Golden Highway project. The resource update resulted in a significant increase in the size of the resource expanding our current indicated resource base to 2,144,000 ounces gold and inferred resources to 3,335,000 oz gold while adding a maiden underground resource at Westaway and open pit resources at Windjammer South and 55. The newly discovered Westaway/West Block deposit contains an underground resource of 662,000 oz gold inferred at a grade of 4.71 grams per tonne gold, and the open pit resources of 1,099,000 oz gold indicated and 1,028,000 oz gold inferred at Windjammer South and 413,000 oz gold indicated and 180,000 oz gold inferred at 55. We are confident of the ability to continue to add to the size of the deposits and targets located within the project. We are currently drill testing new regional targets as well as drilling the extensions of the current resources in our 30,000 metre winter 2020/2021 drill program with the release of initial results expected soon. We look forward to concluding the acquisition of the adjacent Garrison project to bring our total resource base for the new combined project to 3,967,000 oz gold indicated and 4,399,000 oz gold inferred.”
The technical report dated Jan. 22, 2021, was prepared in accordance with National Instrument 43-101, Standards for Disclosure for Mineral Projects, and has been filed on both SEDAR and the company’s website and is now available for review.
The report was prepared by B. Terrence Hennessey, PGeo, Richard M. Gowans, PEng, Barnard Foo, PEng, Christopher Jacobs, MIMMM, David Makepeace, PEng, and Nigel Fung, PEng, of Micon International Ltd. of Toronto, Canada, who are considered qualified persons under NI 43-101. The new technical report covers and supports the technical and scientific disclosure as contained in the updated mineral resource estimate effective Dec. 8, 2020, and reported in Moneta’s press release ME PR 24-2020, dated Dec. 10, 2020, entitled, Moneta reports 2,144,200 oz gold indicated and 3,335,300 oz gold inferred resources in NI 43-101 Golden Highway resource update.
Qualified person
Kevin Montgomery, PGeo, is a qualified person under NI 43-101 and has reviewed and approved the technical contents of this press release.
About Moneta Porcupine Mines Inc.
The company holds a 100-per-cent interest in six core gold projects strategically located along the Destor-Porcupine fault zone in the Timmins gold camp with over 85 million ounces of past gold production. The company’s flagship project, Golden Highway gold project is located 100 km east of Timmins and hosts a total indicated resource of 2,145,000 ounces gold contained within 55.3 million tonnes at 1.21 g/t Au and a total of 3,337,000 ounces gold contained within 49.7 Mt at 2.09 g/t Au in the inferred category at a 2.60 g/t Au cut-off at South West, three g/t Au cut-off for the other underground deposits and 0.30 g/t Au cut-off for the open pit deposits.
Critical Elements increases bought deal to $15-million
In connection with its previously announced bought deal private placement offering, Critical Elements Lithium Corp. and a syndicate of underwriters led by Paradigm Capital Inc. and Cantor Fitzgerald Canada Corp., and including Stifel GMP and Raymond James Ltd., have agreed to increase the size of the offering to raise total gross proceeds of $15,000,040. The corporation will now issue 13,636,400 units of the corporation at $1.10 per unit.
Each Unit of the Corporation will consist of one common share in the capital of the Corporation (a “Common Share”) and one-half of one common share purchase warrant (each whole warrant a “Warrant”). Each whole Warrant will entitle the holder thereof to purchase one Common Share at a price of $1.75 for a period of two years following the Closing Date.
Given the upsize to the Offering, the parties have agreed to remove the previously announced Underwriters’ option.
The net proceeds from the Offering will be primarily used for exploration and development, and general working capital purposes.
The Offering is expected to close on or about February 11, 2021 (the “Closing Date”) and is subject to certain closing conditions including, but not limited to, the receipt of all necessary approvals including the conditional listing approval of the TSX Venture Exchange (the “TSX-V”). The securities issued under the Offering will be subject to a hold period in Canada expiring four months and one day from the closing date of the Offering. The Offering is subject to final acceptance of the TSX-V.
About Critical Elements Lithium Corporation
Primero Group recently completed the first phase of its Early Contractor Involvement agreement with the Corporation and provided a Guaranteed Maximum Price for the engineering, procurement and construction of the wholly-owned Rose Lithium-Tantalum project (the “Project”) on a lump sum turnkey basis that is in line with the Project’s feasibility study published November 29, 2017. The Project feasibility study is based on price forecasts of US $750/tonne for chemical-grade lithium concentrate (5% Li2O), US $1,500/tonne for technical-grade lithium concentrate (6% Li2O) and US $130/kg for Ta2O5 in tantalite concentrate, and an exchange rate of US $0.75/CA $. The internal rate of return (“IRR”) for the Project is estimated at 34.9% after tax, and net present value (“NPV”) is estimated at CA $726 million at an 8% discount rate. The estimated payback period is 2.8 years. The pre-tax IRR for the Project is estimated at 48.2% and the pre-tax NPV at CA $1,257 million at an 8% discount rate (see press release dated September 6, 2017). The financial analysis is based on the Indicated mineral resource. An Indicated mineral resource is that part of a mineral resource for which quantity, grade or quality, densities, shape and physical characteristics can be estimated with a level of confidence sufficient to allow the appropriate application of technical and economic parameters, to support mine planning and evaluation of the economic viability of the deposit. The life-of-mine (LOM) plan provides for the extraction of 26.8 million tonnes of ore, 182.4 million tonnes of waste, and 11.0 million tonnes of overburden for a total of 220.2 million tonnes of material. The average stripping ratio is 7.2 tonnes per tonne of ore. The nominal production rate is estimated at 4,600 tonnes per day, with 350 operating days per year. The open pit mining schedule allows for a 17-year mine life. The mine will produce a total of 26.8 million tonnes of ore grading an average of 0.85% Li2O and 133 ppm Ta2O5, including dilution. The mill will process 1.61 million tonnes of ore per year to produce an annual average of 236,532 tonnes of technical and chemical grade spodumene concentrate and 429 tonnes of tantalite concentrate.
Alpha Lithium Corp. has determined it is in the best interest of shareholders to raise additional capital to finance its business plans. The company does not, however, wish to dilute its current shareholders any further than is absolutely necessary. Accordingly, the company has determined to implement an early warrant exercise program as more particularly described below for eligible outstanding warrants. The essential elements of the incentive program are that the company will issue additional warrants to current eligible warrantholders in consideration of the early exercise of outstanding eligible warrants. The company notes the implementation of the incentive program is subject to TSX Venture Exchange approval.
Warrants issued pursuant to the company’s Sept. 2, 2020, prospectus offering, each exercisable for a period of two years at a price of 80 cents, will be subject to the incentive program.
A total of 8,796,153 existing warrants are available to be exercised during the incentive period under the incentive program. No compensation warrants are eligible to participate in the incentive program.
Under the incentive program, one common share of the company and one incentive warrant will be issued to existing warrantholders for each existing warrant exercised on or before the day that is 60 days from the date the TSX Venture Exchange approves the incentive program. The exercise price of each existing warrant will remain the same as set out in its original terms. Each incentive warrant will be exercisable to acquire one common share of the company at a price of $1.10 per share for a period of two years from the last day of the incentive period.
Any existing warrant holder who holds his/her/its existing warrants in uncertificated form through a brokerage firm or other intermediary must contact the brokerage firm or intermediary to arrange for exercise.
Ynvisible appoints Robinson as CEO
Ynvisible Interactive Inc. has appointed Michael Robinson as its new chief executive officer. Jani-Mikael Kuusisto is appointed as senior vice-president, ventures, and continues as vice-chairman of the board of directors.
With its latest successful round of financing, Ynvisible is now implementing its plans to focus on speed to market for customer products and sustainable financial growth through a 2023 transformation and growth strategy led by Mr. Robinson. Mr. Kuusisto will help reduce the risk and uncertainty of emerging technologies and provide a new growth arena for Ynvisible through a 2025 venture partnership strategy.
“As chief operating officer, Michael brought the organizational tools and leadership style essential to transforming Ynvisible from a start-up to a growth-stage company. As CEO, he now focuses our strong multidisciplinary team on near-term business opportunities with current technology and manufacturing capabilities. The aim is to accelerate time to revenue and profitability,” commented Mr. Kuusisto, who was Ynvisible’s chief executive officer from its reverse takeover (RTO) in January, 2018, and now takes on the role of senior vice-president, ventures, responsible for strategic partnerships and future growth opportunities.
“Our Ynvisible team has everything it needs to be successful through 2023 and beyond; I am honoured to help lead the team, set the playing field for our growth and to support our customers with exceptional electrochromic display products. Our continued success comes from our obsession with making it easy for our customers to develop, adopt, and plug and play our unique display technology to drive breakthrough product experiences for end-users,” added Mr. Robinson.
Mr. Kuusisto continued: “Ynvisible’s vision is to bring everyday objects and surfaces to life, benefiting people in a smart and connected world. There are vast blue ocean opportunities for printed electrochromic displays and systems based on printed electronics. Michael leads our operations to ensure customer success in near-term business opportunities and gears our business for sustainable growth. As senior VP, ventures, I will engage with strategic partners and investors to chart the path into the future, to establish Ynvisible as a global leader in printed electronics.”
Mr. Robinson first engaged with Ynvisible as a client. He served the company as an independent director from November, 2019, to November, 2020, and most recently as Ynvisible’s COO, starting September, 2020. Before joining Ynvisible Interactive Inc., Mr. Robinson worked for over 15 years in fast-moving consumer goods and luxury goods companies: Hasbro Toys, Bliss World LLC, Colgate-Palmolive and, most recently, L’Oreal USA. As operations business development and open innovation lead for L’Oreal USA, his role centred on breakthrough and transformational technology scouting and strategy, business development, and blending business, design, and technology to accelerate and launch new packaging, products and experiences.
Highgold drills 11 m of 8.6% Zn at Johnson Tract
Highgold Mining Inc. has released new assay results from the 2020 exploration drilling program at its flagship Johnson Tract polymetallic gold project in south-central Alaska. Results reported today include drill intersections that continue to expand the down-plunge and up-plunge extents of the JT deposit (JT) and also demonstrate the continuity of the deeper footwall copper-silver zone (FCZ).
JT expansion down plunge — 11.0 metres at 8.6 per cent zinc and 0.4 per cent copper (5.9 grams per tonne gold equivalent), including 5.0 metres at 12.0 per cent Zn and 0.3 per cent Cu (7.9 g/t AuEq) in hole JT20-120;
JT expansion up plunge — 18.3 metres at 5.9 per cent Zn, 64 g/t Ag and 0.1 per cent Cu (5.2 g/t AuEq), including 4.0 metres at 9.5 per cent Zn, 278 grams per tonne silver and 0.2 per cent Cu (10.0 g/t AuEq) in hole JT20-121;
Footwall copper-silver zone expansion — 12 metres at 2.8 per cent Cu and 51 g/t Ag (5.0 g/t Au/Eq), within 58.6 metres at 1.0 per cent Cu and 21 g/t Ag (2.2 g/t AuEq) in hole JT20-110.
“We continue to be encouraged by the continuation and strength of the JT deposit mineral system at depth and by the emergence of the footwall copper-silver zone, a new area of copper-silver-rich mineralization with resource potential that contributes to the overall metal endowment at Johnson,” commented president and chief executive officer Darwin Green. “The current batch of drill results are base metal dominant and highlight the presence of copper- and zinc-rich domains within the polymetallic gold-rich JT deposit.
“Drilling in 2020 significantly expanded the JT deposit footprint with stepouts from the indicated mineral resource of 750,000 ounces AuEq (417,000 ounces Au plus Zn, Cu, lead [and] Ag) at a grade of 10.9 g/t AuEq (6.1 g/t Au) over true thickness of 20 to 50 m. As new data is received, Highgold’s geological and structural model continues to evolve. Based on the new data, it appears that a significant portion of the mineral system is open to expansion down plunge and is not cut off at depth as interpreted by previous operators. With approximately $18-million in the treasury, the company is fully funded to further test the limits of these zones and other targets in 2021.”
Drill program discussion
The 2020 drill program totalled 16,418 metres in 32 completed drill holes. Assays remain outstanding for 12 drill holes and will be released in batches as they are received and evaluated. The Au-Cu-Zn-Ag-Pb mineralization associated with the JT deposit has now been intersected over a strike length of 325 metres and a down-plunge distance of 400 metres and remains open for expansion along strike to the northeast and southwest, and at depth. A complete list of significant assays is presented in the associated table.
JT deposit targets
Drill holes JT20-108 and JT20-110 were drilled on the same cross-section, approximately 100 metres apart, to test the area 25 metres to 50 metres along strike from previously released stepout drill holes along the northeast, down-plunge edge of the JT deposit. The results from hole JT20-110 were particularly encouraging with a broad 58.3-metre intersection of copper-silver-dominant mineralization representing the footwall copper zone. The FCZ is a newly defined subzone of the JT deposit and has now been intersected in six holes. Holes JT20-115 and JT20-113, drilled as 50-metre stepouts above and below these two holes, are still pending receipt of assays.
Drill hole JT20-120 was a 75-metre stepout to the northeast from the JT20-108/JT20-110 cross-section and intersected an upper six-metre gold-zinc zone and lower 11-metre zinc-copper zone corresponding to the JT deposit. Hole JT20-120 has now extended the limit of mineralization 100 metres beyond the modelled resource outline and the zone remains open along strike to the northeast and down plunge.
Drill hole JT20-121 was designed to test the shallow southwest strike extension of the JT deposit, 25 metres outside the defined mineral resource and within 50 metres of surface. The hole intersected 18.3 metres of encouraging zinc-gold-silver mineralization and the zone remains open in this direction. Assays for hole JT20-122, a 25-metre step-out to the southwest, are pending.
The potential to continue expanding the mineralized zones at the JT deposit is considered excellent.
JOHNSON TRACT PROJECT --SIGNIFICANT NEW JT DEPOSIT AREA DRILL INTERSECTIONS
Drill hole From To Length Au Ag Cu Pb Zn AuEq
(metres) (metres) (metres) (g/t) (g/t) (%) (%) (%) (g/t)
JT20-108 237.6 239.6 2.0 0.74 94.4 1.58 0.14 0.63 4.6
including 237.6 238.1 0.5 0.72 246.0 4.10 0.25 1.75 10.7
JT20-110 305.6 313.0 7.4 0.05 18.5 1.29 0.12 0.09 2.2
and 334.9 393.5 58.6 0.22 20.6 1.04 0.09 0.39 2.2
including 334.9 336.2 1.3 2.02 44.0 3.14 0.12 6.32 10.9
and 351.9 363.9 12.0 0.17 50.5 2.83 0.09 0.21 5.0
and 359.4 363.9 4.5 0.18 88.4 4.75 0.17 0.21 8.2
and 389.4 390.9 1.5 0.04 83.8 3.96 0.30 0.25 7.0
JT20-120 237.6 243.6 6.0 1.07 7.7 0.10 0.37 0.88 2.0
including 237.6 238.6 1.0 6.13 30.3 0.32 0.99 1.04 8.1
and 306.0 317.0 11.0 0.17 2.0 0.35 0.04 8.59 5.9
including 312.0 317.0 5.0 0.11 1.6 0.31 0.08 12.01 7.9
JT20-121 98.7 117.0 18.3 0.56 63.5 0.11 0.12 5.92 5.2
including 111.0 115.0 4.0 0.56 278.0 0.24 0.02 9.50 10.0
Notes
Estimated true thickness is from 60 per cent to 90 per centt of drilled length for JT
intersections and unknown for FCZ intersections. Length-weighted intervals are uncapped and
calculated based on a two g/t gold equivalent cut-off. The broader interval in hole JT20-110 was
calculated based on a one g/t gold equivalent cut-off for geological continuity. Gold equivalent
(AuEq) is calculated by the same formula and assumptions used to report the JT deposit National
Instrument 43-101 resource (effective date April 29, 2020) with metal prices of $1,350 per ounce
oz gold, $16/oz silver, $2.80 per pound copper, $1.20/lb zinc and $1/lb lead and does not
consider metal recoveries.
COMPILATION OF SIGNIFICANT FOOTWALL COPPER-SILVER ZONE INTERSECTIONS DRILLED TO DATE
Drill From To Length Cu Ag Au Pb Zn CuEq AuEq
hole (metres) (metres) (metres) (%) (g/t) (g/t) (%) (%) (g/t) (g/t)
JT19-089 355.2 389.1 33.9 1.59 21.6 0.14 0.14 3.44 3.4 4.8
including 364 384.7 20.7 2.38 31.9 0.18 0.10 4.86 4.9 7.0
including 366 373 7.0 4.67 66.3 0.08 0.08 9.69 9.5 13.5
JT20-096 311.1 350.2 39.1 1.64 26.3 0.19 0.15 0.69 2.3 3.3
including 311.1 323 11.9 1.79 38.3 0.31 0.36 0.9 2.8 4.0
and 329.1 343.3 14.2 2.66 34.2 0.14 0.11 1.01 3.5 5.0
including 335.2 342.3 7.1 4.42 58.8 0.17 0.22 1.92 5.9 8.4
JT20-098 391.6 395.4 3.8 2.05 41.6 0.06 0 0.02 2.5 3.5
including 391.6 392.7 1.1 5.44 110.0 0.08 0.01 0.02 6.4 9.1
JT20-100 285.5 294.5 9.0 1.44 6.9 0.1 0.16 2.77 2.8 4.0
including 285.5 287.5 2.0 3.37 11.3 0.08 0.56 4.92 5.8 8.3
JT20-103 298 304 6.0 0.94 22.9 0.07 0.04 4.47 3.1 4.4
including 301 302 1.0 2.28 67.4 0.06 0.01 18.55 10.8 15.4
and 341.8 348 6.2 1.13 14.7 0.76 0.01 0.62 2.1 2.9
JT20-110 305.6 313 7.4 1.29 18.5 0.05 0.12 0.09 1.5 2.2
and 334.9 393.5 58.6 1.04 20.6 0.22 0.09 0.39 1.5 2.2
including 334.9 336.2 1.3 3.14 44.0 2.02 0.12 6.32 7.7 10.9
and 351.9 363.9 12.0 2.83 50.5 0.17 0.09 0.21 3.5 5.0
and 359.4 363.9 4.5 4.75 88.4 0.18 0.17 0.21 5.8 8.2
and 389.4 390.9 1.5 3.96 83.8 0.04 0.3 0.25 4.9 7.0
Notes
Length-weighted intervals are uncapped. Copper equivalent (CuEq) and gold equivalent (AuEq)
are calculated by the same formula and assumptions used to report the JT deposit NI 43-101
resource (effective date April 29, 2020) with metal prices of $1,350/oz gold, $16/oz silver,
$2.80/lb copper, $1.20/lb zinc and $1/lb lead and does not consider metal recoveries.
Other targets
Assay results for an additional three drill holes, JT20-097, JT20-101 and JT20-105, have been received for the Northeast Offset target (NEO), located 500 to 800 metres northeast of the JT deposit. Significant results include 0.7 metre at 31.2 per cent Zn, 0.1 g/t Au, two g/t Ag, less than 0.1 per cent Cu (19.2 g/t AuEq) in JT20-101, and 0.8 metre at 3.0 g/t Au, seven g/t Ag, 2.0 per cent Cu, 3.1 per cent Zn (7.9 g/t AuEq) in JT20-105. Assay results for an additional four holes remain outstanding for NEO.
The narrow intercepts reported to date for NEO are interpreted as distal-type mineralization similar to that found peripheral to the main JT deposit. Taken together with historic results and geological observations of the nine holes completed this year at NEO, the company currently interprets less offset along the Dacite fault than was originally estimated. Large gaps in drilling exist between the JT deposit and the NEO target and these areas will be a focus for drill planning in 2021 to target fault-displaced extensions of the JT deposit.
At the North trend target, results have been received for three drill holes: JT20-099, JT20-104, and JT20-107. Anomalous gold values were intersected in JT20-099, including 6.0 metres at 0.7 g/t Au, eight g/t Ag, 0.2 per cent Cu and 0.4 per cent Zn (1.5 g/t AuEq). No significant mineralized intervals were intersected in holes JT20-104 or JT20-107.
About the Johnson Tract gold project
Johnson Tract is a polymetallic (gold, copper, zinc, silver and lead) project located near tidewater, 125 miles (200 kilometres) southwest of Anchorage, Alaska. The 21,000-acre property includes the high-grade Johnson Tract deposit and at least nine other mineral prospects over a 12-kilometre strike length. Highgold acquired the project through a lease agreement with Cook Inlet Region Inc. (CIRI), one of 12 land-based Alaska native regional corporations created by the Alaska Native Claims Settlement Act of 1971. CIRI is owned by more than 9,100 shareholders who are primarily of Alaska native descent.
Mineralization at Johnson Tract occurs in Jurassic-age intermediate volcaniclastic rocks and is characterized as epithermal-type with submarine volcanogenic attributes. The JT deposit is a thick, steeply dipping silicified body (20 m to 50 m average true thickness) that contains a stockwork of quartz-sulphide veinlets and brecciation, cutting through and surrounded by a widespread zone of anhydrite alteration. The Footwall copper zone is located structurally and stratigraphically below the JT deposit and is characterized by copper-silver rich mineralization.
The JT deposit hosts an indicated resource of 2.14 million tonnes grading 10.93 g/t gold equivalent (AuEq) comprising 6.07 g/t Au, 5.8 g/t Ag, 0.57 per cent Cu, 0.80 per cent Pb and 5.85 per cent Zn. The inferred resource of 580,000 tonnes grading 7.16 g/t AuEq comprises 2.05 g/t Au, 8.7 g/t Ag, 0.54 per cent Cu, 0.33 per cent Pb and 6.67 per cent Zn. For additional details see technical report titled “Initial Mineral Resource Estimate for the Johnson Tract Project, Alaska,” dated June 15, 2020. Gold equivalent is based on assumed metal prices and 100-per-cent recovery and payabilities for Au, Ag, Cu, Pb and Zn. Assumed metal prices are $1,350 (U.S.) per ounce for gold (Au), $16 (U.S.)/oz for silver (Ag), $2.80 (U.S.) per pound for copper (Cu), $1 (U.S.)/lb for lead (Pb) and $1.20 (U.S.)/lb for zinc (Zn) and are based on nominal three-year trailing averages as of April 1, 2020. Historical metallurgical testing on drill core samples has indicated that good gold and base metal recoveries and marketable concentrates can be expected, with concentrates that are low in deleterious elements.
Prior to Highgold, the project was last explored in the mid-1990s by a mid-tier mining company that evaluated direct shipping material from Johnson to the Premier mill near Stewart, B.C.
QMX suitor Eldorado offers $132M in cash, shares
Eldorado Gold Corp. and QMX Gold Corp. have entered into a definitive arrangement agreement pursuant to which Eldorado will acquire all of the outstanding shares of QMX (not already owned by Eldorado) for total consideration of approximately $132-million on a 100-per-cent and fully diluted basis or 30 cents per QMX share. Eldorado currently owns 68,125,000 shares of QMX, or approximately 17 per cent of QMX shares outstanding, which it purchased at six cents per share in a private placement on Dec. 30, 2019.
Under the terms of the arrangement, each holder of QMX shares will receive, for each QMX share held, (i) 7.5 cents in cash and (ii) 0.01523 of an Eldorado common share, for total consideration of 30 cents per QMX share (based on Eldorado’s closing price on Jan. 20, 2021). The arrangement consideration represents a 39.5-per-cent premium to the closing price of QMX shares on the TSX Venture Exchange on Jan. 20, 2021.
Following the completion of the arrangement, QMX shareholders will own approximately 2.8 per cent of the issued and outstanding shares of Eldorado.
Benefits to QMX shareholders
Attractive premium of 39.5 per cent to the closing price of the QMX shares on the TSX-V on Jan. 20, 2021;
Continuing exposure to QMX’s land package and subsequent value creation opportunities through a broader consolidated operating camp in the eastern Abitibi;
Exposure to Eldorado’s portfolio of high-quality mines and development projects;
Access to Eldorado’s technical, project development and operating capabilities, as well as financial resources;
Potential for value accretion through a revaluation in Eldorado’s share price as Eldorado continues to deliver and derisk its combined asset portfolio.
Brad Humphrey, president and chief executive officer of QMX, commented: “In 2016, we set to refocus QMX into a premier exploration company to maximize the value of our Val d’Or property. I am proud to say that this transaction is a testament to all the hard work and effort that the QMX team has put in over the years, and in particular, a testament to the success and strength of the QMX exploration team in Val d’Or. In addition, QMX could not have achieved its success to date without a number of supportive stakeholders.
“After evaluating the terms of the transaction, management and the board of directors of QMX view this transaction as beneficial for all shareholders as it provides immediate value for their support and the opportunity to continue to benefit as part of an established and well financed gold producer.”
Strategic rationale for Eldorado
Significantly increases Eldorado’s footprint and landholdings in the Abitibi greenstone belt by approximately 550 per cent, consistent with its strategy to invest in world-class mining jurisdictions where it currently operates;
Adds a pipeline of additional organic opportunities proximal to Lamaque, which can be exploited by leveraging existing infrastructure and the company’s strong operational, exploration and stakeholder expertise;
Enhances Eldorado’s overall risk profile through the addition of future growth prospects in one of the top mining jurisdictions in the world;
Underscores Eldorado’s long-term commitment to Quebec and Canada as a core jurisdiction.
“This transaction expands our position in the Abitibi camp and is consistent with our strategy of pursuing growth at Lamaque in Quebec, a high-quality existing jurisdiction,” said George Burns, Eldorado’s president and chief executive officer. “QMX’s highly prospective land package is ideally located immediately adjacent to our current Lamaque operation and associated exploration projects in the heart of the Val d’Or gold district. Eldorado’s growing financial flexibility will enable us to continue to identify and secure opportunities for prudent growth within our operating footprint.”
Transaction conditions and timing
QMX intends to call a meeting of shareholders to be held in March, 2021, to seek shareholder approval for the arrangement. The transaction will be effected by way of a court-approved plan of arrangement under Section 182 of the Business Corporations Act (Ontario) and will require:
Approval of at least 66-2/3rds per cent of the votes cast by QMX shareholders;
A simple majority of the votes cast by QMX shareholders, excluding votes from certain shareholders, including Eldorado, as required under Multilateral Instrument 61-101.
The completion of the transaction is also subject to the receipt of court, stock exchange and any other required regulatory approvals, and is subject to certain customary closing conditions for transactions of this nature. The arrangement does not require the approval of the shareholders of Eldorado.
The agreement provides for, among other things, non-solicitation covenants, with fiduciary out provisions that allow QMX to consider and accept a superior proposal, subject to a right to match period in favour of Eldorado. The agreement also provides for a termination fee of $6.6-million to be paid by QMX to Eldorado if the agreement is terminated in certain specified circumstances.
The directors and senior officers of QMX, holding in aggregate over 1 per cent of the issued and outstanding common shares of QMX, have entered into voting support agreements with Eldorado, pursuant to which they have agreed to vote their shares in favour of the transaction. Together with shares already owned or held by Eldorado, approximately 18 per cent of QMX’s issued and outstanding shares would be voted in support of the arrangement.
The companies are working toward closing the transaction in late March/early April, 2021.
Board approval and recommendation
The special committee of independent directors of QMX has received an opinion from Canaccord Genuity Corp. that, based upon and subject to the limitations, assumptions and qualifications of and other matters considered in connection with the preparation of such opinion, the consideration to be received by QMX shareholders (other than Eldorado) pursuant to the arrangement is fair, from a financial point of view, to the QMX shareholders (other than Eldorado).
Following its review and in consideration of, amongst other things, the fairness opinion, the special committee has unanimously recommended that the board of directors of QMX approve the arrangement. The QMX board, following the receipt and review of recommendations from the special committee, has approved the agreement and the arrangement and has determined that the arrangement is fair to shareholders of QMX (other than Eldorado) and is in the best interests of QMX, and recommends to shareholders that they vote in favour of the arrangement.
The agreement has also been unanimously approved by the board of directors of Eldorado.
Warrants and options
Pursuant to the arrangement, each QMX stock option outstanding immediately prior to the effective time of the arrangement shall automatically vest and be immediately cancelled in exchange for a cash payment equal to the excess, if any, of: (i) the product of the number of QMX shares underlying such QMX option and 30 cents; over (ii) the applicable aggregate exercise price of such QMX options. All QMX warrants outstanding immediately prior to the effective time will remain outstanding and, following the effective time, shall entitle the holder thereof to receive, upon the subsequent exercise of such holder’s QMX warrant in accordance with its terms, in lieu of each QMX share to which such holder was theretofore entitled upon such exercise but for the same aggregate consideration payable therefor, the arrangement consideration.
Advisers and counsel
Eldorado has engaged Trinity Advisors Corp. as its financial adviser and Fasken Martineau DuMoulin LLP as its legal adviser in connection with the transaction.
Canaccord Genuity Corp. is acting as financial adviser to the QMX special committee and Wildeboer Dellelce LLP is acting as legal adviser to QMX and the special committee in connection with the transaction.
Additional information
Full details of the arrangement are set out in the agreement, which will be filed by QMX under its profile on SEDAR. In addition, further information regarding the arrangement will be contained in a management information circular to be prepared in connection with the meeting and filed on SEDAR at the time that it is mailed to shareholders. All shareholders are urged to read the management information circular once it becomes available as it will contain additional important information concerning the arrangement.
About Eldorado Gold Corp.
Eldorado is a gold and base metals producer with mining, development and exploration operations in Turkey, Canada, Greece, Romania and Brazil. The company has a highly skilled and dedicated work force, safe and responsible operations, a portfolio of high-quality assets, and long-term partnerships with local communities. Eldorado’s common shares trade on the Toronto Stock Exchange and the New York Stock Exchange.
About QMX Gold Corp.
QMX Gold is a Canadian-based resource company traded on the TSX Venture Exchange under the symbol QMX. QMX is systematically exploring its extensive property position in the Val d’Or mining camp in the Abitibi district of Quebec. QMX is currently drilling in the Val d’Or East portion of its land package focused on the Bonnefond deposit and in the Bourlamaque batholith. In addition to its extensive land package QMX owns the strategically located Aurbel gold mill and tailings facility.
GR Silver Mining appoints Catchpole as exploration VP
GR Silver Mining Ltd. has appointed Dr. Honza Catchpole as vice-president of exploration, effective Jan. 20, 2021.
Dr. Catchpole has extensive experience working in Mexico, USA, Canada, Andean South America and Europe, mainly with porphyry Cu, skarn (Zn-Pb-Ag-Cu), epithermal precious (Au-Ag) and base metal (Ag-Zn-Pb-Cu) deposits. Dr. Catchpole has worked in project generation, exploration and project evaluation of precious metal and porphyry Cu projects for Teck Resources Limited (“Teck”), Vale Exploration Canada and Sumitomo Metal Mining Canada. Dr. Catchpole has been directly involved in designing, planning and executing drill programs, as well as managing greenfield and reconnaissance stage projects in Mexico. Dr. Catchpole comes to GR Silver Mining from Teck where he was project manager and geoscience lead at the San Nicolas VHMS deposit in Zacatecas, Mexico, currently at pre-feasibility stage. His background in geologic, alteration and structural mapping (surface and underground) in Andean volcanic arc settings with good understanding of hydrothermal alteration and mineralization is a valuable addition to the GR Silver Mining exploration team.
Honza Catchpole received his Ph.D. in Earth Sciences from the University of Geneva, Switzerland. His research focused on the relationship of zoned epithermal silver and base metal mineralization to porphyry-type mineral deposits at Morococha, central Peru.
Dr. Catchpole is a Professional Geologist (P. Geo) registered with the Association of Professional Engineers and Geoscientists of the Province of British Columbia and a Qualified Person within the meaning of National Instrument 43-101.
GR Silver Mining President and CEO, Marcio Fonseca, commented, “We are very excited to have attracted a highly qualified geoscientist with extensive experience in large polymetallic silver mining districts and all key stages of successful exploration programs to join GR Silver Mining in Mexico. Dr. Catchpole’s knowledge and experience working in Latin America’s world class mining districts is a valuable component for the upcoming exploration program in our projects.”
Concurrent with the appointment of Dr. Catchpole as VP Exploration, Trevor Woolfe is stepping down as VP Exploration and will remain with the Company as VP Corporate Development.
The Company also announces that, pursuant to its 10% rolling stock option plan and in compliance with the policies of the TSX Venture Exchange, it has granted incentive stock options to certain directors, officers, consultants and employees of the Company and its Mexican subsidiaries, to purchase up to an aggregate of 2,405,000 common shares of the Company. These options are exercisable for a period of five years at a price of $0.74 per share. Of these options, 1,450,000 options granted to certain directors and officers of the Company will vest as to 1/3 on the date of grant, and a further 1/3 on each of the 1st and 2nd anniversaries of the date of grant.
The Company has also negotiated a debt settlement with an arm’s-length creditor. Pursuant to the debt settlement agreement and subject to acceptance by the TSX Venture Exchange, the Company has settled debt of US$82,500 (CAD$104,412) in consideration for which it will issue an aggregate of 141,097 common shares at a deemed price of CAD$0.74 per share.
About GR Silver Mining Ltd.
GR Silver Mining Ltd. is a Mexico-focused company engaged in cost-effective silver-gold resource expansion on its key assets which lie on the eastern edge of the Rosario Mining District, Sinaloa, Mexico.
PLOMOSAS SILVER PROJECT
GR Silver Mining owns 100% of the Plomosas Silver Project located near the historic mining village of La Rastra, within the Rosario Mining District. The Project is a past-producing asset where only one mine, the Plomosas silver-gold-lead-zinc underground mine, operated a 600 tpd crush milling flotation circuit from 1986 to 2001, producing approximately 8 million ounces of silver, 73 million pounds of lead and 28 million pounds of zinc.
The Project has an 8,515-hectare property position and is strategically located within 5 km of the Company’s San Marcial Silver Project in the southeast of Sinaloa State, Mexico.
The March 2020 acquisition of the Plomosas Silver Project included 563 historical and recent drill holes from both surface and underground locations. These drill holes represent an extensive database allowing the Company to advance towards resource estimation and potential project development in the near future.
The Company has commenced an 11,900 m drilling program with surface holes focused on expanding known mineralization along strike in two initial areas, the Plomosas Mine Area and the San Juan Area. Underground drilling included in the program will target the extension of recent polymetallic discoveries at the lowest level (775 m RL, or ~250 m below surface) of the Plomosas Mine Area and six low sulfidation epithermal veins at San Juan Area. Both areas will be the subject of NI 43-101 resource estimations following completion of this drill program.
The 100%-owned assets include all facilities and infrastructure including: access roads, surface rights agreement, water use permit, 8,000 m of underground workings, water access, 60 km – 33 KV power line, offices, shops, 120-person camp, infirmary, warehouses and assay lab representing approximately US$30 million of previous capital investments. The previous owners invested approximately US$18 million in exploration, including extensive geophysics and geochemistry programs.
The silver and gold mineralization on this Project display the alteration, textures, mineralogy and deposit geometry characteristics of a low sulfidation epithermal silver-gold-base metal vein/breccia mineralized system. Previous exploration was focused on Pb-Zn-Ag-Au polymetallic shallow mineralization, hosted in NW-SE structures in the vicinity of the Plomosas mine. The E-W portion of the mineralization and extensions for the main N-S Plomosas fault remain under-explored.
In addition to the resource potential at Plomosas, a review of the existing drill hole database, geophysical surveys and geochemical data covering most of the concession, has defined 16 new exploration targets from which 11 have high priority for future exploration programs.
SAN MARCIAL PROJECT
San Marcial is a near-surface, high-grade silver-lead-zinc open pit-amenable project, which contains a 36 Moz AgEq (Indicated) and 11 Moz AgEq (Inferred) NI 43-101 resource estimate. The company recently completed over 320 m of underground development in the San Marcial Resource Area, from which underground drilling is planned to expand the high-grade portions of the resource down dip. The Company recently discovered additional mineralization in the footwall, outside of the existing resource, and will also be drilling this area. GR Silver Mining is the first company to conduct exploration at San Marcial in over 10 years. The NI 43-101 resource estimate (San Marcial Project – Resource Estimation and Technical Report) was completed by WSP Canada Inc. on March 18, 2019 and amended on June 10, 2020.
Recent exploration has identified silver and gold mineralization in areas previously defined as non-mineralized, discovering evidence of pervasively altered rocks with intense silicification, veining and associated wide, silver and gold mineralized zones on the footwall of the NI 43-101 resource.
Plomosas and San Marcial collectively represent a geological setting resembling the multimillion-ounce San Dimas Mining District which has historically produced more than 600 Moz silver and 11 Moz gold over a period of more than 100 years.
OTHER PROJECTS
GR Silver Mining’s other projects are situated in areas attractive for future discoveries and development in the same vicinity of Plomosas and San Marcial in the Rosario Mining District.
Orea Mining closes $1.4-million financing
Orea Mining Corp. has closed its non-brokered private placement previously announced on Jan. 14, 2021.
The Private Placement was oversubscribed, raising gross proceeds of CAD$1,400,000 through the issuance of 8,235,294 units at a price of CAD$0.17 per unit. Each unit is comprised of one common share of Orea (a “Share”), and a half warrant. Each full warrant entitles the holder, on exercise, to purchase one Share at a price of CAD$0.30 for a period of 18 months from the closing date of the Private Placement. An aggregate of 548,471 units has been paid in finders’ fees. The securities issued in the Private Placement are subject to a hold period expiring on May 22, 2021.
The proceeds of the Private Placement will be used for general working capital purposes.
The securities offered have not been, and will not be, registered under the U.S. Securities Act of 1933, as amended (the “U.S. Securities Act”) or any U.S. state securities laws, and may not be offered or sold in the United States or to, or for the account or benefit of, United States persons absent registration or any applicable exemption from the registration requirements of the U.S. Securities Act and applicable U.S. state securities laws. This press release does not constitute an offer to sell or the solicitation of an offer to buy securities in the United States, nor in any other jurisdiction.
About Orea
Orea is a leading gold exploration and development company operating in a prospective and underexplored segment of the Guiana Shield, South America. Its mission is to develop gold deposits with a reduced environmental footprint using innovative technologies, upholding the highest international standards for responsible mining. In French Guiana, Orea holds a major interest in the world-class Montagne d’Or mine development project. It is also advancing the Maripa gold exploration project.
American Manganese prepares reactor for production
American Manganese Inc.’s specialized cathode reactor is being prepared to produce its first test batch of cathode precursor materials. American Manganese acquired the specialized reactor for cathode precursor production, which is a valuable input for lithium-ion battery manufacturing. The reactor is capable of producing modern cathode materials such as lithium-nickel-manganese-cobalt oxide (NMC) and lithium-nickel-cobalt-aluminum oxide (NCA), both of which are commonly used in electric vehicle batteries.
To achieve the modern cathode material’s high-quality standards and to ensure testing conditions are not contaminated, American Manganese has prepared a specialized and controlled testing area for the reactor. The reactor will first undergo water testing before introducing the purified NMC and NCA leach solutions that were produced during the RecycLiCo pilot plant’s patented leach stages.
American Manganese will report results of the independent analytical testing performed on the test batch and will also prepare samples of the produced NMC and NCA cathode precursor for independent performance validation by all interested third party organizations.
The National Research Council of Canada industrial research assistance program (NRC IRAP) has provided support and funding for this technical feasibility project, formally known as synthesis of cathode material precursors from recycled battery scrap.
“The production of high-quality cathode precursor material, in a minimal number of steps, lends added value to our recycled product and shows the viability of our closed-loop recycling method,” said Larry Reaugh, president and chief executive officer of American Manganese. “The engineering and process parameter experiments throughout our pilot plant project offer a valuable tool to incorporate into larger commercial projects.”
About American Manganese Inc.
American Manganese is a critical metals company focused on recycling of lithium-ion batteries (RecycLiCo) and the production of electrolytic manganese metal from low-grade United States resources. The recycling process provides high extraction of cathode metals, such as lithium, cobalt, nickel, manganese and aluminum at high purity, with minimal processing steps. American Manganese aims to commercialize its breakthrough RecycLiCo patented process and become an industry leader in recycling cathode materials from lithium-ion battery manufacturing waste.
Cartier Resources begins drilling 30,000 m at Benoist
Cartier Resources Inc. has commenced drilling on the Benoist property, located 65 kilometres northeast of Lebel-sur-Quevillon in the province of Quebec. The program follows the maiden NI 43-101 resource estimate published Dec. 17, 2020. Two drill rigs with directional drilling crews will be employed to complete the four-phase program for a total of roughly 30,000 metres.
The Pusticamica deposit has the characteristics required for a bulk tonnage approach as evidenced, among other things, by the geometry of the deposit, polymetallic mineralization and the results of the maiden resource estimate on which the drilling program is based;
The National Instrument 43-101 resource estimate for the Pusticamica gold deposit on the Benoist property was produced using a gold price of $1,610 (U.S.) per ounce and a cut-off grade of 1.5 grams per tonne gold equivalent:
1,455,400 tonnes at an average grade of 2.87 g/t AuEq for a total of 134,400 ounces of gold in the indicated resource category; and
1,449,600 tonnes at an average grade of 2.30 g/t AuEq for a total of 107,000 ounces of gold in the inferred resource category.
Drilling aims to expand the resource of the Pusticamica deposit and discover new deposits peripheral to the known mineralization.
Note — The estimate, completed and made available on Dec. 16, 2020, was carried out by Christine Beausoleil, PGeo, and Claude Savard, PGeo, of InnovExplo Inc., independent qualified persons within the meaning of NI 43-101. The full report is expected to be filed on or before Jan. 29, 2021, on SEDAR.
The current controlled directional drilling program consists of four phases totalling approximately 30,000 metres. These phases are as follows:
Phase one: Delimit by drilling the extension of the mineralization of the Pusticamica deposit between 350-metre and 650-metre depth;
Phase two: Delimit by drilling the extension of the mineralization of the Pusticamica deposit between 650-metre and 1,300-metre depth;
Phase three: Explore the potential peripheral to the Pusticamica deposit to discover additional deposits. A total of five potential sectors will be drilled. The targets, located between 150 metres and 450 metres, consist of OreVision IP type anomalies, with a geophysical signature similar to that of the Pusticamica deposit. All of these anomalous sectors are found inside the favourable auriferous corridor known over a strike length of 2,200 metres. Three of these anomalous sectors are directly located in the eastern and western extensions of the Pusticamica deposit; and
Phase four: Define the upper part (30 metres to 350 metres) of the deposit to increase the resources and collect mineralization aimed at carrying out technical tests to optimize the value of the project from the metallurgical aspects as well as industrial sorting of the mineralization.
” Cartier is making progress on several fronts at the moment and we anticipate positive results on the Chimo mine project as well as the recently launched Benoist drill program. We believe this course of action will reward our shareholders in the coming months,” commented Philippe Cloutier, president and chief executive officer.
Features of the Benoist project
The Benoist property hosts the Pusticamica gold deposit, which also contains copper and silver concentrations;
This mineralization has all the typical characteristics sought by Cartier and, as at the Chimo mine project, could rapidly outline high-tonnage mineralization;
Cartier holds a 100-per-cent interest in the property for which 2.5-per-cent net smelter return royalties have been awarded, of which 2 per cent is redeemable at any time for $2-million;
The property, which is accessible year-round via forestry road 3,000, is located near the mills of the Langlois and Bachelor mines and the future mill of Osisko Mining’s Windfall project; and
Work to date on the property consists of 93 drill holes totalling 32,356 metres, resulting in 14,243 samples collected over a sampled length of 14,647 metres.
About Cartier Resources Inc.
Cartier Resources, founded in 2006, is based in Val d’Or, Que. The province has consistently ranked as one of the world’s best mining jurisdictions, primarily because of its favourable geology, attractive fiscal environment and pro-mining government.
The company has a strong cash position with more than $12.9-million and a significant corporate and institutional endorsement, including Agnico Eagle Mines, Jupiter Asset Management and Quebec investment funds.
Cartier’s strategy is to focus on gold projects with features that offer the potential for rapid growth.
The company holds a portfolio of exploration projects in the Abitibi greenstone belt of Quebec, one of the world’s most prolific mining regions.
The company’s focus is to advance its four key projects through drilling programs. All of the projects were acquired at reasonable costs in recent years and are drill-ready with targets along the geometric extensions of gold deposits.
Exploration work is currently focused on the Chimo mine and Benoist properties to maximize value for investors. The company is preparing the next phase of exploration work, which will entail drilling programs on Fenton and Wilson properties.
Qualified persons
The scientific and technical information in this news release was prepared and reviewed by Gaetan Lavalliere, PGeo, PhD, Cartier’s vice-president, and Ronan Deroff, PGeo, MSc, Cartier’s senior geologist, project manager and geomatician, both qualified persons as defined in NI 43-101. Mr. Lavalliere approved the information contained in this press release.
Greencastle closes $100,000 private placement
Greencastle Resources Ltd. has closed its previously announced non-brokered private placement through the issuance of an aggregate of one million units of the company at a price of 10 cents per unit for gross proceeds of $100,000.
Each Unit is comprised of one common share in the capital of the Company (each a “Common Share”) and one Common Share purchase warrant (each, a “Warrant”). Each Warrant entitles the holder thereof to acquire one Common Share at an exercise price of C$0.15 at any time on or before January 21, 2024. The net proceeds from the Offering will be used for general corporate and working capital purposes. The securities issued in connection with the Offering are subject to a statutory hold period of four months and one day in accordance with applicable securities laws.
The securities offered have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any U.S. state securities laws, and may not be offered or sold in the United States or to, or for the account or benefit of, United States persons absent registration or an applicable exemption from the registration requirements of the U.S. Securities Act and applicable U.S. state securities laws. This press release does not constitute an offer to sell or the solicitation of an offer to buy securities in the United States, nor in any other jurisdiction.
Frontier Lithium plans phase IX drilling at PAK
Frontier Lithium Inc. is planning a phase IX diamond drill program on the PAK lithium project, located in the Red Lake area of Northwestern Ontario. The imminent 3,000 metre diamond drill program is driven by recommendations from a pre-economic assessment (PEA) report that is currently under way. The 15-hole program is designed to primarily upgrade the 12.2 million tonnes (MT) of inferred resource on the Spark deposit to indicated and measured categories as well as to step-out on the known resource for potential expansion. The PAK lithium project contains Ontario’s highest-grade and largest lithium resource which is located in an emerging premium lithium mineral district referred to as the “Electric Avenue” that is located in the Great Lakes region of Northern Ontario.
The drill program’s secondary purpose is to collect essential data to finalize geotechnical and geomechanical parameters required for further PAK lithium project feasibility to assess the viability of a vertically integrated lithium mining and chemicals business.
The program will commence in early February, 2021, whereby a minimum of 3,000 metres will be drilled over an estimated 15 diamond drill holes. Drilling operations will cease during spring break up and recommence in May, 2021.
“Since the Spark deposit has a large surface exposure, broad mineralized zones and remains open in all directions we are confident that Spark could surpass the 9.2-million-tonne measured and indicated resource of the PAK deposit,” stated Garth Drever, vice-president of exploration.
Trevor Walker, the company’s president and chief executive officer, stated: “The Frontier Lithium team is proud to have worked relentlessly since the discovery of our PAK lithium deposit in 2013. Two thousand twenty was a transformational year for Frontier despite recent depressed market conditions for the lithium industry. We have advanced and derisked the project on multiple fronts; exploration leading to new discoveries, starting development stage engineering work, early results from our applied research and development work, and enhancements on our corporate development.”
2020 summary
Exploration
Spark deposit — Frontier expands its PAK lithium project with a maiden resource estimate for the Spark pegmatite including 3.2 MT in indicated and 12.2 MT in the inferred categories.
Frontier Lithium awarded 2019 Bernie Schneiders Discovery of the Year from the Northwestern Ontario Prospectors Association (NWOPA) for the Spark discovery.
Pennock showing — Electric Avenue target 25 kilometres from the PAK and Spark deposits, confirmed by channel sampling 16 metres of 2 per cent Li2O.
Bolt — Frontier discovers a new spodumene-bearing pegmatite bolt between the PAK and Spark deposits with initial channel sampling that has resulted in 1.5 per cent Li2O over 36.4 m.
Mine development work
The company initiated a preliminary economic assessment study to demonstrate the project’s full potential by leveraging its high-quality, low-impurity resource to produce premium spodumene concentrates and to introduce Frontier as a future fully integrated, lithium hydroxide supplier to the emerging electric vehicle and lithium battery market.
Initiated a preliminary engineering study, application for permits for a possible demonstration scale concentrator plant.
Lithium products testwork
Spodumene concentrate — Frontier Lithium has successfully produced rare 7.2 per cent Li2O technical grade spodumene concentrate samples with life of mine sample from PAK. Samples have been qualified by global industrial premium glass makers.
Lithium hydroxide (LiOH) — Frontier has successfully produced lithium hydroxide at the bench-scale from the PAK lithium project.
Corporate development
The company has added Steve J.J. Letwin, an industry veteran, to its board of directors.
Objectives for 2021
In 2021, the focus will be to advance feasibility studies on the PAK lithium project on a fully integrated concept for mine, mill and chemical plant. Concurrently, diamond drilling, mini-piloting of chemicals testwork and demonstration concentrator decision will be made in the year. More specific objectives are as follows:
Announce PEA results in February and report in March;
Conduct diamond drilling with minimum of 3,000 metres of diamond drilling winter/spring to upgrade Spark deposit, also targeting a possible increase in size;
Based on positive PEA scenario and lithium chemicals mini-pilot plant operations results, initiate preliminary feasibility study of fully integrated operations;
Continue discussions with strategic partners and key players of the lithium market, including users of premium concentrates and chemicals;
Complete permitting process for advanced exploration sample, conclude engineering study and make construction decision for demonstration scale concentrator at the PAK lithium project;
To remain an exemplary ESG (environmental, social and governance) positive project with specific focus of the first nations peoples in the project area by increasing their involvement with further development of the project.
Due diligence
All scientific and technical information in this release has been reviewed and approved by Garth Drever, PGeo, the qualified person (QP) under the definitions established by National Instrument 43-101.
About Frontier Lithium Inc.
Frontier Lithium is a Sudbury-based, publicly listed junior mining company with the largest land position in an emerging premium lithium mineral district located in the Great Lakes region of Northern Ontario. The company maintains a 100-per-cent interest in the PAK lithium project, which contains one of North America’s highest-grade, large-tonnage hard-rock lithium resources in the form of a rare low-iron spodumene. The project has significant upside exploration potential. Frontier Lithium is a preproduction business that has recently commenced a preliminary economic assessment study targeting the manufacturing of battery-quality lithium hydroxide in the Great Lakes region to support electric vehicle and battery supply chains in North America. Frontier maintains a tight share structure, with management owning approximately 30 per cent of the company.
About the PAK lithium project
The PAK lithium project encompasses 26,774 hectares at the south end of Ontario’s Electric Avenue, which is the largest land package hosting lithium-bearing pegmatites in Ontario. The project covers 65 kilometres of the Electric Avenue’s length and remains largely unexplored; however, since 2013, the company has delineated two premium spodumene-bearing lithium deposits, located 2.3 kilometres from each other at the southwestern end of the project. Recently, Frontier confirmed the presence of spodumene with the Pennock Lake pegmatite occurrence, which is located 30 kilometres farther along Frontier’s PAK lithium project. Frontier’s premier Great Lakes location is advantaged by favourable geology, proven metallurgy with access to intermodal hubs, infrastructure, power and mining, along with downstream lithium processing expertise and auto OEMs (original equipment manufacturers).
The PAK deposit has a mineral reserve in the proven and probable categories of 5.77 million tonnes averaging 2.06 per cent lithium oxide. The deposit hosts a rare technical/ceramic-grade spodumene with low inherent iron (below 0.1 per cent iron oxide). The Spark deposit has a mineral resource estimate of 3.2 million tonnes averaging 1.59 per cent Li2O (indicated) and 12.2 million tonnes averaging 1.36 per cent Li2O (inferred), as per the NI 43-101 technical report titled “PAK prefeasibility study, Spark resource estimation,” by WSP Canada Inc. and Nordmin Engineering Ltd., updated on March 23, 2020. The company recently initiated a preliminary economic assessment study for a fully integrated project producing lithium hydroxide from the PAK lithium project.
Eloro Resources prospectus offering
Effective Dec. 30, 2020, the company’s final short form prospectus dated Dec. 29, 2020, qualifying the distribution of up to 3,548,400 units of the company, excluding underwriters’ overallotment option, was filed with and accepted by the TSX Venture Exchange, and filed with and receipted by the Ontario Securities Commission as principal regulator. Under Multilateral Instrument 11-102, Passport System, the prospectus is deemed to have been filed with and receipted by each of the British Columbia, Alberta, Saskatchewan, Manitoba, New Brunswick, Nova Scotia, Prince Edward Island, and Newfoundland and Labrador securities commissions.
The exchange has been advised that closing occurred on Jan. 5, 2021, for aggregate gross proceeds of $6,325,023 (including the underwriters’ overallotment option, which was exercised in full).
Offering: 4,080,660 units (including 532,260 units under the underwriters’ overallotment option) (Each unit consists of one common share and one-half of one common share purchase warrant, with each whole warrant being exercisable into one common share at $2 for a 24-month period.)
Unit price: $1.55 per unit
Underwriters: Haywood Securities Inc. and Echelon Wealth Partners Inc.
Underwriters’ commissions: an aggregate of $442,751.61 in cash and 285,646 non-transferable broker warrants (Each broker warrant entitles the holder to acquire one common share at $1.55 for a 24-month period.)
For further details, please refer to the company’s short form prospectus dated Dec. 29, 2020, and news releases dated Dec. 9, 2020, Dec. 30, 2020, and Jan. 5, 2021.
Critical Elements arranges $10-million financing
Critical Elements Lithium Corp. has entered into an agreement with Paradigm Capital Inc. and Cantor Fitzgerald Canada Corp. (the co-lead underwriters), on behalf of a syndicate of underwriters, in connection with a bought deal private placement offering of 9,091,000 units of the corporation to be issued at $1.10 per unit for gross proceeds of $10,000,100.
Each unit of the corporation will consist of one common share in the capital of the corporation and one-half of one common share purchase warrant. Each whole warrant will entitle the holder thereof to purchase one common share at a price of $1.75 for a period of two years following the closing date.
In addition, the underwriters have been granted an option to purchase up to 2,272,750 additional units at the issue price.
The net proceeds from the offering will be primarily used for exploration and development, and general working capital purposes.
The offering is expected to close on or about Feb. 11, 2021, and is subject to certain closing conditions, including, but not limited to, the receipt of all necessary approvals, including the conditional listing approval of the TSX Venture Exchange. The securities issued under the offering will be subject to a hold period in Canada expiring four months and one day from the closing date of the offering. The offering is subject to final acceptance of the TSX-V.
About Critical Elements Lithium Corp.
Primero Group recently completed the first phase of its early contractor involvement agreement with the corporation and provided a guaranteed maximum price for the engineering, procurement and construction of the wholly owned Rose lithium-tantalum project on a lump-sum turnkey basis that is in line with the project feasibility study published Nov. 29, 2017. The project feasibility study is based on price forecasts of $750 (U.S.) per tonne for chemical-grade lithium concentrate (5 per cent Li2O), $1,500 (U.S.) per tonne for technical-grade lithium concentrate (6 per cent Li2O) and $130 (U.S.) per kilogram for Ta2O5 in tantalite concentrate, and an exchange rate of 75 U.S. cents to $1 (Canadian). The internal rate of return (IRR) for the project is estimated at 34.9 per cent after tax and the net present value (NPV) is estimated at $726-million (Canadian) at a discount rate of 8 per cent. The estimated payback period is 2.8 years. The pretax IRR for the project is estimated at 48.2 per cent and the pretax NPV at $1,257-million (Canadian) at a discount rate of 8 per cent (see news release dated Sept. 6, 2017). The financial analysis is based on the indicated mineral resource. An indicated mineral resource is that part of a mineral resource for which quantity, grade or quality, densities, shape, and physical characteristics can be estimated with a level of confidence sufficient to allow the appropriate application of technical and economic parameters, to support mine planning and evaluation of the economic viability of the deposit. The life-of-mine (LOM) plan provides for the extraction of 26.8 million tonnes of ore, 182.4 million tonnes of waste and 11.0 million tonnes of overburden for a total of 220.2 million tonnes of material. The average stripping ratio is 7.2 tonnes per tonne of ore. The nominal production rate is estimated at 4,600 tonnes per day, with 350 operating days per year. The open-pit mining schedule allows for a 17-year mine life. The mine will produce a total of 26.8 million tonnes of ore grading an average of 0.85 per cent Li2O and 133 parts per million Ta2O5, including dilution. The mill will process 1.61 million tonnes of ore per year to produce an annual average of 236,532 tonnes of technical-grade and chemical-grade spodumene concentrate and 429 tonnes of tantalite concentrate.
GoviEX closes $8-million private placement
GoviEX Uranium Inc. has completed a non-brokered private placement with the issue of 32 million units at a price of 25 cents per unit for gross proceeds of $8-million.
Each unit consists of one Class A common share in the capital of the company and one transferable share purchase warrant. Each warrant will entitle the holder to acquire on exercise one common share until Jan. 21, 2023, at a price of 30 U.S. cents per warrant share, subject to applicable adjustments.
All securities issued under the private placement are subject to a four-month hold period and may not be traded before May 22, 2021.
The net proceeds from the private placement will be used to finance continued exploration and development activities on the company’s assets, for working capital, and for general corporate purposes.
The company paid cash finders’ fees of approximately $433,391 in relation to the private placement.
The private placement remains subject to the final exchange acceptance.
About GoviEX Uranium Inc.
GoviEX is a mineral resource company focused on the exploration and development of uranium properties in Africa. GoviEX’s principal objective is to become a significant uranium producer through the continued exploration and development of its flagship mine-permitted Madaouela project in Niger, its mine-permitted Mutanga project in Zambia and its multielement Falea project in Mali.
Power Metals, Exiro Minerals property agreement amended
The TSX Venture Exchange has accepted for filing a fifth amending agreement dated Oct. 30, 2020, between Power Metals Corp. and Exiro Minerals Corp. (the vendor), amending an agreement dated May 1, 2017, and subsequently amended Aug. 23, 2017, April 25, 2018, April 10, 2019, and May 1, 2020. In lieu of $75,000 cash and 384,621 shares due, the company will issue 920,000 common shares.
For additional details, please see the company’s news release dated Dec. 24, 2020.
Radisson Mining Resources Inc. has released significant high-grade gold intercepts from the continuing exploration drill program at its 100-per-cent-owned O’Brien gold project located along the Larder-Lake-Cadillac break, halfway between Rouyn-Noranda and Val d’Or in Que., Canada.
Drilling has continued to validate the 2019 litho-structural model (announced in February, 2019) while demonstrating the potential for resource growth at depth and along strike. Drilling so far has been focused on an approximately one-kilometre strike length to the east of the old O’Brien mine, historically considered the highest-grade gold mine in Quebec (production of 587,121 ounces gold grading 15.25 g/t gold from 1926 to 1957). With the acquisition of the New Alger project (August, 2020), Radisson now controls approximately 5.2 km of highly prospective strike along the Cadillac break, including 2.5 km to the east and west of the main shaft at the old O’Brien mine.
Key highlights:
Resource expansion potential to the west of the first mineralized trend, OB-20-168:
14.90 grams per tonne gold over 8.00 metres (including 22.24 g/t Au over 2.30 m and 33.94 g/t Au over 2.00 m) approximately 60 m west of the current resource boundary;
Resource expansion potential to the east of the first mineralized trend (multiple intercepts approximately 40 m east of the current resource boundary):
OB-20-164: 41.04 g/t Au over 2.30 m (including 170.50 g/t Au over 0.55 m) and 10.46 g/t Au over 2.05 m (including 36.40 g/t Au over 0.50 m);
OB-20-170: multiple intercepts including 5.27 g/t Au over 7.40 m and 5.73 g/t Au over 9.20 m (including 13.45 g/t Au over 1.90 m and 12.15 g/t Au over 2.00 m);
Continuing drill program (commenced August, 2019) expanded by 70,000 m for a total of 130,000 m since completion of the last National Instrument 43-101 resource estimate (July, 2019):
57,154 m completed to the end of 2020 with results pending for 10,790 m;
Cash balance of approximately $15-million following the November, 2020, equity financing;
Corporate updates:
Kenneth Williamson appointed senior adviser, geology;
Nicolas Guivarch promoted to manager, exploration;
Richard Nieminen has stepped down as director, exploration.
NOTABLE DRILL RESULTS
Hole From To Core length Au uncut
(m) (m) (m) (g/t)
OB-20-160
32.65 34.45 1.80 7.45
including 32.65 33.45 0.80 16.60
OB-20-163
67.20 69.10 1.90 5.61
including 68.10 69.10 1.00 10.40
OB-20-164
196.25 198.55 2.30 41.04
including 198.00 198.55 0.55 170.50
and 493.85 495.90 2.05 10.46
including 493.85 494.35 0.50 36.40
and 503.25 505.00 1.75 5.84
including 503.25 503.75 0.50 19.65
OB-20-168
591.00 599.00 8.00 14.90
including 591.00 593.30 2.30 22.24
which includes 591.00 592.30 1.30 39.00
and 597.00 599.00 2.00 33.94
which includes 598.00 599.00 1.00 67.50
OB-20-170
213.50 215.50 2.00 8.43
including 214.50 215.50 1.00 16.80
and 562.60 570.00 7.40 5.27
including 562.60 567.40 4.80 6.82
which includes 565.40 567.40 2.00 9.83
and 576.00 578.00 2.00 4.02
including 577.00 578.00 1.00 6.15
and 593.10 602.30 9.20 5.73
including 593.10 595.00 1.90 13.45
which includes 594.00 595.00 1.00 25.30
and 600.30 602.30 2.00 12.15
which includes 601.30 602.30 1.00 23.20
Resource expansion potential to the east of the first mineralized trend (300 m east of the old O’Brien mine):
Hole OB-20-164 returned multiple mineralized intercepts approximately 38 m to the east of currently modelled resources in the first trend including:
41.04 g/t Au over 2.30 m core length (vertical depth of 185 m) including 170.50 g/t Au over 0.55 m, including visible gold showings;
Additional high-grade intercepts 280 m vertically below the above intercept, including:
10.46 g/t Au over 2.05 m core length including 36.40 g/t Au over 0.50 m;
5.84 g/t Au over 1.75 m core length including 19.65 g/t Au over 0.50 m;
These intercepts were obtained:
Approximately 150 m vertically above and 50 m to the west of the previously released intercept of 110.97 g/t Au over 2.50 m from hole OB-20-167;
Approximately 150 m vertically above and 55 m to the west of a historical intercept of 1,920 g/t Au over 0.21 m (U-1328).
Hole OB-20-170 returned multiple mineralized intercepts approximately 25 m to the east of currently modelled resources in the first trend (and approximately 110 m below and 75 m farther east of the high-grade intercepts in OB-20-164) including:
8.43 g/t Au over 2.00 m core length (vertical depth of 205 m) including 16.80 g/t Au over 1.00 m;
Additional high-grade intercepts 335 m vertically below the above intercept, including:
5.27 g/t Au over 7.40 m core length including 9.83 g/t Au over 2.00 m;
4.02 g/t Au over 2.00 m core length including 6.15 g/t Au over 1.00 m;
5.73 g/t Au over 9.20 m core length (vertical depth of 570 m) including:
13.45 g/t Au over 1.90 m core length including 25.30 g/t Au over 1.00 m;
12.15 g/t Au over 2.00 m core length including 23.20 g/t Au over 1.00 m OB-20-164.
OB-20-167 and OB-20-170 highlight the potential for resource expansion to the east of the current resource boundary, between 465 m and 615 m vertical depth.
Resource expansion to the west of the first mineralized trend (300 m east of the old O’Brien mine) near the lower boundary of current resources:
Hole OB-20-168 returned 14.90 g/t Au over 8.00 m (vertical depth of 475 m) approximately 60 m to the west of currently modelled resources in the first trend. This broader mineralized zone includes:
22.24 g/t Au over 2.30 m core length, including 39.00 g/t Au over 1.30 m, including visible gold showings;
33.94 g/t Au over 2.00 m core length, including 67.50 g/t Au over 1.00 m.
The high-grade intercept was obtained 330 m below previously reported intercept of 92.89 g/t Au over 2.60 m (from OB-20-153), and approximately 55 m and 145 m, respectively, above historical intercepts of 21.46 g/t Au over 1.70 m (OB-17-23) and 124.57 g/t Au over 0.82 m (ST-1029).
Both intercepts were obtained within multiple mineralized structures appearing to align with the dip of the first mineralized trend, highlighted by historical drilling and stepout drilling completed below current resources.
The high-grade intercepts are both located outside and to the east of the current resource boundary.
OB-20-168, OB-20-159, OB-20-158 and OB-20-153 and other historical intercepts highlight the potential for resource expansion by up to 60 m to the west of the current resource boundary, starting close to surface down to 475 m vertical depth. In addition to hole OB-20-168, hole OB-20-160 and OB-20-163 returned high-grade intercepts of, respectively, 7.45 g/t Au over 1.80 m and 5.61 g/t Au over 1.90 m in the Pontiac sediments, suggesting the presence and continuity of east-northeast mineralized zones within this geological unit.
Drilling at O’Brien continues to validate the litho-structural model while highlighting resource growth potential laterally and at depth:
Drilling to date has continued to define and expand three high-grade mineralized trends, located approximately 300 m, 600 m and 900 m, respectively, to the east of the old O’Brien mine.
Assays are pending from stepout drill holes completed on all three trends.
Mineralized trends identified bear similarities with structures previously mined at O’Brien down to a depth of 1,100 m (historical production of 587,000 ounces grading 15.25 g/t Au).
Drilling so far has demonstrated continuity of mineralization well below the boundary of defined resources in all three trends, which remain open for expansion laterally and at depth. In the first trend, drilling has highlighted continuity of mineralization down to a vertical depth of 950 m, approximately 350 m below the boundary of resources that are limited to a vertical depth of 600 m. In the second trend, drilling has highlighted continuity of mineralization down to a vertical depth of 770 m, approximately 300 m below the boundary of resources that are mostly within 400 m from surface. In the third trend, drilling has traced mineralization down to 500 m vertical depth from surface. Current resources are mostly confined to between surface and 240 m vertical depth.
Almost all drilling conducted as part of the continuing campaign has been within a strike length of approximately one km to the east of the old O’Brien mine, representing only a small portion of more than five km of prospective strike that Radisson controls along the Cadillac break.
57,743 m of drilling completed to date with assays pending for approximately 10,790 m:
This release represents approximately 4,979 m of drilling.
With approximately $15-million in treasury, the company is now financed to expand the program to over 130,000 m through 2021.
Released results to date (since the commencement of drilling in August, 2019) represent only 36 per cent of approximately 130,000 m envisioned to be complete by the end of 2021.
Corporate updates:
Mr. Williamson appointed senior adviser, geology;
Mr. Guivarch promoted to manager, exploration;
Mr. Nieminen has stepped down as director, exploration.
Radisson is pleased to announce that it has entered to an arrangement with 3DGeo Solution Inc., whereby Mr. Williamson has been appointed senior adviser, geology. Mr. Williamson, currently president of 3DGeo Solution Inc., is a professional geologist with close to 20 years of experience in the gold mining industry. He graduated with a master’s degree in structural geology from Laval University in 2002. His prior experience includes key technical roles with corporates such as Goldcorp, Rubicon Minerals and Premier Gold in addition to consulting roles with InnovExplo and MRB & Associates. Mr. Williamson has been involved with the company and the O’Brien project since 2018. He was responsible for the development of the current litho-structural model and the ensuing National Instrument 43-101 mineral resource estimate in 2019. In collaboration with the company management and the technical team, Mr. Williamson will assist with the planning and execution of the exploration programs well as maintain his key role in the geological interpretation and 3-D modelling efforts deployed by the company.
In addition, Mr. Guivarch has been promoted to exploration manager. Mr. Guivarch, who joined Radisson in August, 2019, is a professional geologist with close to 10 years of experience in mineral exploration. His prior experience includes roles with Areva, InnovExplo, Metanor Resources and MRB & Associates. He graduated with a master’s degree in exploration and mineral resource management from the University of Orleans in 2009. Mr. Guivarch has been an integral part of the exploration team since August, 2019, and has since been involved with all aspects of the exploration program at O’Brien. His management role within the Radisson team will ensure the smooth execution of the exploration program.
Mr. Nieminen has stepped down from the position of director of exploration, effective Dec. 31, 2020. The company would like to thank him for his valuable contribution over the last two years and wishes him the best of success in his future endeavours.
In addition, in order to fulfill new professional duties, which would place him in conflict with current board position at Radisson, Tony Brisson has stepped down from the position of director on the company’s board of directors, effective Jan. 15, 2021. The company would like to thank him for his valuable contribution and wishes him the best of success in his future endeavours.
Kincora drills 74 m of 0.4% Cu, 0.37 g/t Au at Trundle
Kincora Copper Ltd. has provided further assay results from continuing drilling at the Trundle brownfield project located in the Macquarie Arc of the Lachlan fold belt in New South Wales, Australia.
Part assay results for holes TRDD011 and TRDD012 at the Trundle Park prospect return significant mineralized intervals with high grade copper and gold zones
TRDD011 assay results for the first 102m of 332m: 74 metres @ 0.40% copper and 0.37 g/t gold from surface including:
42 meters @ 0.64% copper and 0.58 g/t gold from 32 metres including:
14 meters @ 1.69% copper and 1.39 g/t gold from 58 metres including:
4 metres @ 4.98% copper and 3.36 g/t gold from 68 metres
TRDD012 assay results for the first 220m of 581m: 29 metres @ 0.10% copper and 0.18 g/t gold from 191 metres including:
2 metres @ 0.87% copper and 0.05 g/t gold from 195 metres; and,
1 meter @ 0.09% copper and 1.17 g/t gold from 204 metres
Broad and multiple skarn horizons intersected within TRDD012 provide encouragement for expanding the footprint size potential of the at/near surface skarn system along strike and to depth
Primary bornite, chalcopyrite, molybdenum and observations of discrete monzodiorite intrusions in TRDD012 provide encouragement for vectoring towards the interpreted causative porphyry system intrusive target and the current working geological model for the central Trundle Park prospect
Two rigs operational at the Trundle Park prospect
John Holliday, Technical Committee chair, and Peter Leaman, Senior VP of Exploration, commented: “Ore grade assay results received for the upper sections of TRDD011 and the skarn alteration intersected in TRDD012 support our continuing exploration of the central Trundle Park prospect area. TRDD011 provides further confirmation of the grade potential at or near surface within the skarn system. TRDD011 and TRDD012 are providing vectors towards the intrusive source of the skarn, which may be strong porphyry mineralisation, similar to what drives skarn mineralisation at such famous porphyry systems as Cadia, Grasberg and Ok Tedi.
The focus of the current two-rig program is to expand the scale of the near surface ore grade skarn mineralisation by stepping out along strike. As well the drilling will be testing for the causative porphyry intrusive source of the mineralisation in the skarn. The results announced today provide key learnings and encouragement for this drilling strategy.”
Trundle Park prospect
As outlined in the December 21 st 2020 release, hole TRDD011 intersected intense structurally controlled mineralization hosted within near surface skarn alteration with further positive visual indications reported from TRDD012, a step back to the south-east from TRDD011.
Assay results from nearer surface intervals for TRDD011 (to 102 metres of 332m – see Table 1) and TRDD012 (to 202 metres of 581m – see Table 2) have been received. Highlights include:
TRDD011: 74 metres @ 0.40% copper and 0.37 g/t gold from surface including:
42 meters @ 0.64% copper and 0.58 g/t gold from 32 metres including:
14 meters @ 1.69% copper and 1.39 g/t gold from 58 metres including:
4 metres @ 4.98% copper and 3.36 g/t gold from 68 metres
TRDD012: 29 metres @ 0.10% copper and 0.18 g/t gold from 191 metres including:
2 metres @ 0.87% copper and 0.05 g/t gold from 195 metres; and,
1 meter @ 0.09% copper and 1.17 g/t gold from 204 metres;
TRDD011 extended the mineralised skarn horizon to the northwest of TRDD001 (previously reported 51 metres @ 0.54% copper and 1.17g/t gold from 39 metres) and TRDD012 was a 50-metre step out to the south from TRDD001 (Figure 3). TRDD012 has provided encouragement and vectors for the targeted causative porphyry intrusion system source with observations of:
primary bornite and chalcopyrite within quartz veins occurring in an interval of volcaniclastic rocks from 160m to 210m down hole which are the best primary bornite and chalcopyrite veining intersected to date at the Trundle project (Figure 3);
observations of discrete monzodiorite intrusions from 275m to 340m down hole depth, and coarse primary molybdenum within a quartz vein at 314m down hole depth (assay results pending); and,
four well developed and broad skarn horizons identified commencing from the surface (noting dilution in reported intervals from core loss) and extending deep down hole (assay results pending) – Figure 4.
Recent drilling in the central Trundle Park prospect area is providing significant encouragement to the lateral and thickness potential of the skarn horizons and vectors for both the skarn mineralised system but also towards targeting a large and potentially related porphyry intrusion system.
Hole TRDD015 has recently commenced to the southeast along the fence of TRDD001, TRDD011 and TRDD012 seeking to test both the skarn and interpreted causative intrusive targets and the current working geological model outlined in Figure 4.
The average depth of prior explorer drilling at the Trundle Park prospect is 28 metres, with only two diamond core drill holes completed to moderate depths. Our deeper diamond core drilling activities are resulting in a significantly improved understanding of the bedding direction hosting the skarn horizons, along with key structures/faulting and the identified multiple phases of mineralization within the skarn, all supporting a substantial mineralizing event and provide further vectors to the targeted causative intrusion system.
These recent drill results, relogging of core and review of geophysical inversions have provided the confidence to mobilize a second drill rig, concurrent with operations re-commencing after a short holiday break over the holiday season on January 4 th, 2021.
Table 1: Trundle Park target hole TRDD011 - Anomalous results for part assays available
Hole ID From (m)To (m)Interval (m) Au (g/t)Cu (%)Mo (ppm)Dilution (%)
TRDD011 0.0 74.0 74.0 *0.37 0.40 0.20 20%
including0.0 22.0 22.0 *0.12 0.09 0.10 23%
including32.0 74.0 42.0 0.58 0.64 0.30 10%
including38.0 50.0 12.0 0.26 0.14 0.17 0%
including58.0 72.0 14.0 1.39 1.69 0.76 0%
including68.0 72.0 4.0 3.36 4.98 1.91 0%
Reported assay results from surface to 102 metres depth with 88.9% core recovery over this interval and 83.1% over the first 50 metres. End of hole (EOH): 332m.
Table 2: Trundle Park target hole TRDD012 - Anomalous results for part assays available
Hole ID From (m)To (m)Interval (m) Au (g/t)Cu (%)Mo (ppm)Dilution (%)
TRDD012 86.0 99.0 13.0 *0.07 0.06 0.27 27%
including97.0 99.0 2.0 0.11 0.05 0.50 0%
and 117.7 123.4 5.7 *0.09 0.03 0.29 36%
and 191.0 220.0 29.0 0.18 0.10 3.59 31%
including191.0 193.0 2.0 0.22 0.17 3.50 0%
including195.0 197.0 2.0 0.05 0.87 1.00 0%
including204.0 220.0 16.0 0.26 0.05 5.75 13%
including204.0 205.0 1.0 1.17 0.09 1.00 0%
Reported assay results from surface to 220 metres depth with 75.2% core recovery over this interval and 55% over the first 50 metres. EOH: 581m.
Table 3: Trundle Park target hole TRDD008 - Anomalous results for full assays available
Hole ID From (m)To (m)Interval (m) Au (g/t)Cu (%)Mo (ppm)Dilution (%)
TRDD008 0.0 87.7 87.7 *0.65 0.19 1.11 16%
including0.0 16.4 16.4 *1.51 0.19 0.34 4%
including0.0 6.0 6.0 3.73 0.25 0.67 0%
including34.0 40.0 6.0 0.60 0.43 0.67 0%
including52.0 87.7 35.7 *0.69 0.24 0.17 3%
including66.0 74.0 8.0 *1.63 0.57 0.00 13%
and 134.0 142.0 8.0 0.26 0.12 2.25 0%
and 172.0 178.0 6.0 0.01 0.06 0.67 0%
and 262.0 272.0 10.0 0.21 0.15 0.80 0%
and 305.0 332.0 27.0 0.10 0.07 0.56 26%
and 379.0 384.0 5.0 0.18 0.02 0.00 20%
and 379.0 407.0 28.0 0.33 0.15 0.61 14%
including394.0 398.0 4.0 0.94 0.57 1.50 0%
and 422.0 424.0 2.0 0.16 0.02 1.00 0%
Part assay results previously announced for TRDD008 on November 30th, 2020.
Note for Tables 1-3: Interpreted near surface skarn gold and copper intercepts are calculated using a lower cut of 0.20g/t and 0.10% respectively. Porphyry gold and copper intercepts are calculated using a lower cut of 0.10g/t and 0.05% respectively. Internal dilution is below cut off; and, * Dilutions related with Core loss
For further details, including QAQC procedures, please refer to the following press releases: 1. July 6, 2020 – Kincora announces high-grade gold-copper results from first hole at Trundle 2. July 23, 2020 – Kincora reports further strong encouragement at Trundle 3. September 3, 2020 – Kincora provides update on expanded drilling program at Trundle 4. November 30, 2020 – Kincora intersects broad mineralized zones at Trundle 5. January 20, 2021 – Kincora intersects further shallow mineralization at Trundle
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Kincora’s Trundle project is the only brownfield porphyry copper-gold project held by a listed junior in Australia’s foremost porphyry belt, within the same mineralized complex as Australia’s second largest porphyry mine. Trundle is located west of the China Molybdenum Company Limited (CMOC) operated Northparkes copper-gold mine/mill operation, within the same Northparkes Igneous Complex.
Previous explorer drilling has been extensive at Trundle with the completion of 2208 holes for 61,146 metres, but deeper drilling utilising modern exploration knowledge has been very limited. Over 92% of prior drilling has been completed to less than 50 metres depth and is considered to be too shallow, with just 11 holes beyond 300 metres (0.5% of holes drilled).
Following positive initial drilling results from Kincora’s maiden drilling program in August 2020, the Company completed an oversubscribed $5.33 million equity raising, with proceeds primarily to be used to expand the initial six hole program to over twenty drill holes with an additional 11,000 metres of drilling. Kincora’s primary targets, Mordialloc and Trundle Park, lie 8.5km apart and have not been drill tested since the industry leading HPX proprietary Typhoon IP system and detailed magnetic surveys were completed.
Drilling, Assaying, Logging and QA/QC Procedures
Sampling and QA/QC procedures are carried out by Kincora Copper Limited, and its contractors, using the Company’s protocols as per industry best practise.
All samples have been assayed at ALS Minerals Laboratories, delivered to Orange, NSW, Australia. In addition to internal checks by ALS, the Company incorporates a QA/QC sample protocol utilizing prepared standards and blanks for 5% of all assayed samples.
Diamond drilling was undertaken by DrillIt Consulting Pty Ltd, from Parkes, under the supervision of our field geologists. All drill core was logged to best industry standard by well-trained geologists and Kincora’s drill core sampling protocol consisted a collection of samples over all of the logged core.
Sample interval selection was based on geological controls or mineralization or metre intervals, and/or guidance from the Technical Committee provided subsequent to daily drill and logging reports. Sample intervals are cut by the Company and delivered by the Company direct to ALS.
All reported assay results are performed by ALS and widths reported are drill core lengths. There is insufficient drilling data to date to demonstrate continuity of mineralized domains and determine the relationship between mineralization widths and intercept lengths.,
True widths are not known at this stage.
Significant mineralised intervals are reported based upon two different cut off grade criteria:
Interpreted near surface skarn gold and copper intercepts are calculated using a lower cut of 0.20g/t and 0.10% respectively; and,
Porphyry intrusion system gold and copper intercepts are calculated using a lower cut of 0.10g/t and 0.05% respectively.
Significant mineralised intervals are reported with dilution on the basis of:
Internal dilution is below the aforementioned respective cut off’s; and,
Dilutions related with core loss as flagged by a “*”.
The following assay techniques have been adopted:
Gold: Au-AA24 (Fire assay), reported.
Multiple elements: ME-ICP61 (4 acid digestion with ICP-AES analysis for 33 elements) and ME-MS61 (4 acid digestion with ICP-AES & ICP-MS analysis for 48 elements), the latter report for TRDD001 and former reported for holes TRDD002-TRDD012.
Copper oxides and selected intervals with native copper: ME-ICP44 (Aqua regia digestion with ICP-AES analysis) has been assayed, but not reported.
Assay results >10g/t gold and/or 1% copper are re-assayed.
Qualified Person
The scientific and technical information in this news release was prepared in accordance with the standards of the Canadian Institute of Mining, Metallurgy and Petroleum and National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”) and was reviewed, verified and compiled by Kincora’s geological staff under the supervision of Peter Leaman (M.Sc. Mineral Exploration, FAusIMM), Senior Vice-President of Exploration of Kincora, and John Holliday (BSc Hons, BEc, member of the Australian Institute of Geoscientists), Non-Executive Director and Technical Committee Chairman, who are the Qualified Persons for the purpose of NI 43-101.
The review and verification process for the information disclosed herein for the Trundle project has included the receipt of all material exploration data, results and sampling procedures of previous operators and review of such information by Kincora’s geological staff using standard verification procedures.
About Kincora Copper Limited
Kincora Copper is an active explorer and project generator focused on world-class copper-gold discoveries.
The Company is currently drilling the only brownfield project (Trundle) held by a listed junior in Australia’s foremost porphyry belt (the Macquarie Arc, in NSW), with district scale project pipeline, and seeking to confirm its position as the leading pure play porphyry explorer in Australia.
The Company has assembled an industry leading technical team who have made multiple Tier 1 copper discoveries, who have “skin in the game” equity ownership and who are backed by a strong institutional shareholder base.
Our exploration model applies a robust systematic approach utilising modern exploration techniques supporting high-impact, value add programs underpinned by targets with strong indications for world-class scale potential.
We have corporate offices in Vancouver and Melbourne. Kincora is listed on the TSX Venture Exchange under the ticker symbol KCC and is seeking a listing on the ASX for early in 2021 (subject to market conditions).
Critical Elements’ Rose info received by committee
The joint assessment committee established by the Impact Assessment Agency of Canada and the Cree nation government confirmed on Jan. 14, 2021, having received all information required to allow the committee to complete the environmental assessment of Critical Elements Lithium Corp.’s Rose lithium-tantalum project and prepare the draft environmental assessment report. This is a significant step in the federal process of obtaining the authorization for the Project, which runs parallel to the provincial process updated in the news release of January 18, 2021. We are grateful to the governmental employees involved in both the federal and provincial permitting processes for their ongoing efforts through this difficult COVID-19 impacted work environment.
The Rose property (where the Rose Lithium-Tantalum Project is proposed) is located in northern Quebec’s administrative region, on the territory of Eeyou Istchee James Bay. It is located on Category III land, on the Traditional Lands of the Cree Nation of Eastmain.
"The economy of tomorrow will be driven by strategic sectors, like the electric vehicles and batteries sectors. This vision aligns perfectly with our vision to become a large responsible supplier of lithium to the flourishing electric vehicle and energy storage systems industries. We represent perfectly sustainable development with our project that is, not only good for the environment, but that is good for the development of local communities," stated Jean-Sebastien Lavallee, Critical Elements' Chief Executive Officer.
Critical Elements' President, Dr. Steffen Haber, noted that: "Our Rose Project features one of the purest lithium deposits globally. Quebec is strategically well-positioned regarding the critical transitioning energy and e-mobility markets in Europe and the United States and boasts excellent infrastructure and human capital. Our cooperative relationship with the Cree Nation of Eastmain, the Grand Council of the Crees (Eeyou Istchee), and the Cree Nation Government has been formalized through the Pikhuutaau Agreement signed in July 2019. We are excited by the anticipated receipt of Provincial and Federal Phase 1 permitting, detailed engineering and financing for the construction of the Rose mine and concentrator, and the delivery of engineering studies for Phase II (a chemical plant for conversion of Rose spodumene concentrate to high quality lithium hydroxide for use in lithium-ion batteries")."
FPX Nickel expects to settle $3.45M debt for shares
FPX Nickel Corp. intends to convert the full amount of principal and interest owing on the long-term loan provided to the company by a private shareholder, totalling approximately $3,453,051, into 5,312,386 common shares of the company at a price of 65 cents per share. On completion of the debt conversion, the private shareholder loan will be extinguished and the company will be debt free.
All the securities issued pursuant to the debt conversion will be subject to a four-month hold period. Completion of the debt conversion is subject to receipt of all required regulatory and other approvals, including acceptance by the TSX Venture Exchange.
The terms of the private shareholder loan are described in the company’s news release dated March 25, 2019. The debt conversion constitutes a related party transaction under Multilateral Instrument 61-101, Protection of Minority Security Holders in Special Transactions, as the private shareholder is a related party of FPX Nickel given his greater than 10 per cent beneficial shareholding in the company. Pursuant to Section 5.5(a) and 5.7(1)(a) of MI 61-101, the company is exempt from obtaining a formal valuation and minority approval of the company’s shareholders in respect of the debt conversion due to the fair market value of the debt conversion being below 25 per cent of the company’s market capitalization.
Kincora subsidiary hit with $950,000 (U.S.) in taxes
Kincora Copper Ltd.’s Mongolian subsidiary, Golden Grouse IBEX LLC (GGI), has received a tax act for 2.7 billion tugriks, approximately $950,000 (U.S.), from the Mongolian Tax Authority (MTA).
The 2021 tax assessment is comprised of four items, of which Kincora strongly refutes the merit of three including the very vast majority of the liability sought relating to the 2016 merger with IBEX (the agreed liability owed is 16.2 million MNT or approximately US$5,700).
The 2016 IBEX merger required a tax assessment (“2016 tax assessment”), which followed an audit of the IBEX’s entity’s prior year periods and the on and off-shore agreements to the merger (IBEX and parent entity’s). The 2016 tax assessment was a condition precedent to close the merger with any adverse liability enabling both counterparties to walk away from the merger. In the Company’s view, supported by three independent external legal opinions, the 2021 tax assessment’s retrospective liability is not in-line with the 2016 tax assessment and Mongolian law, and there is no basis for a different determination.
Shortly after the IBEX merger closed, in mid 2017, a tax audit commenced on the merged entity to validate that the merger transaction completed as it was presented to the Mongolian authorities in 2016. This review has only recently completed, with a fourth audit review team, including a team member from the original 2016 review, delivering the 2021 tax assessment. A statute of limitation for the MTA to review and retrospectively enable a contradictory tax act expires on February 10 th, 2021.
Kincora notes that the exploration licenses included in the IBEX merger, and the core focus of the 2021 tax assessment, have been thoroughly explored, and subsequently all have been properly relinquished back to the State. The basis of the tax liability sought is referenced to the historical invested capital of the IBEX entity counterparty to the 2016 merger, all of which has since been written off.
Sam Spring, President and CEO, commented: “Kincora recognizes that the MTA, similar to many other countries’ designated tax administrators, has the right to conduct a periodic audit of tax returns filed by companies within its jurisdiction to ensure the proper application of domestic tax laws and that resolution processes are in place for any disputed tax rulings.
However, Kincora strongly refutes the merit of three of the four findings of the 2021 tax assessment, including the very vast majority of the liability now being sought relating to the 2016 merger with IBEX which in our view, and of three separate legal counsels views, unfortunately seeks to move the goal posts that were relied upon for a commercial transaction to close and is without legal basis.
The Company is seeking to proactively engage with the MTA, defend the 2016 tax assessment and come to a conclusion in line with Mongolian law, which was relied upon for the 2016 IBEX merger”.
In the Company’s view the 2021 tax assessment, if upheld and enforced, would create confusion for investors, as tax is now being imposed, retrospectively, on:
Invested capital;
Non-cash transactions where no profit was made or will ever be made;
Exploration tenure that is now held by the State; and,
A different basis to the binding 2016 assessment that was relied upon by both Kincora and the Mongolian authorities to allow for closure of the 2016 IBEX merger.
Kincora remains in active discussions with Resilience Mining Mongolia Pty Ltd (“RMM”). On December 14 th, 2020, the Company executed a binding Option and Acquisition Agreement (“Agreement”) with RMM relating to Kincora’s Mongolian portfolio and subsidiaries. The Company has provided RMM a standstill for any RMM obligations relating to this Agreement as the Company engages with the MTA, seeking to defend the 2016 tax assessment.
The Company notes, limited recourse to Kincora’s Australian and Canadian assets and operations from the 2021 tax assessment. Assets held within GGI primarily include the Tourmaline Hills project exploration license (the western of the two adjacent licenses that make up the wider Bronze Fox projects) and Red Well exploration license.
Kincora will continue to inform the market of any material developments relating to the 2021 tax assessment and RMM agreement.
Plateau Energy Metals CEO Holmes resigns
Alex Holmes, Plateau Energy Metals Inc.’s chief executive officer, has notified the board of directors of the company of his intention to resign from his position of CEO, effective Feb. 12, 2021. Mr. Holmes will continue to serve the Company as a strategic advisor and a member of the Board of Directors. The Compensation, Corporate Governance and Nominating Committee of the Board will commence a process to identify a successor. Until such time, Dr. Laurence Stefan the Company’s President and Chief Operating Officer, will assume the role of interim CEO.
“On behalf of the Board, the management team, and the staff, I would like to thank Alex for his thoughtfulness and leadership, especially during the extraordinary circumstances we’ve faced this past two years. He has been instrumental in the advancement of the Falchani project to a PEA and his work to promote the project has brought Falchani recognition on an international stage,” Plateau’s Chair of the Board, Alan Ferry, commented. “We are pleased to have Alex continue to play a role as a strategic advisor while remaining an active member of the Board as the Company continues to advance its two critical energy metals projects, Macusani Uranium and Falchani Lithium, in Peru.”
Alex Holmes stated: “I would like to thank all stakeholders for their support over the past couple of years through particularly challenging times, including our strong management team inside and outside Peru. We have achieved many great things in a short and volatile period. I continue to believe both projects offer great value and have many strategic merits in our world focused on greener, cleaner energy consumption and storage. I am pursuing a new opportunity one step downstream of battery raw materials and thus my ongoing role as strategic advisor and Director of Plateau will enable me to offer strategic insight into a highly connected supply chain.”
Dr. Stefan commented: “There is no doubt that we are living in very exciting times for the green and renewable energy sectors and Plateau is well positioned to capitalize on both with our Macusani Uranium and Falchani Lithium projects. We continue to advance the development of both projects and intend to release the results of further exploration and processing work that took place in the last quarter of 2020, both in the field and laboratory. In addition, the Company is pursuing additional test work, started in April 2020, to demonstrate the by-product potential of Caesium, Rubidium and SOP extraction from Falchani rock. All of these initiatives demonstrate the unique potential of the Macusani plateau and the Company’s ongoing commitment to realize this for the people of Peru and all stakeholders.”
Roscan Gold Corp. has released positive diamond and RC drill results from 23 holes totalling 4,158 metres at its Kabaya target with multiple holes intersecting high gold grades over wide intervals. Drill hole DDDBS20-008 intersected 2.96 grams per tonne over 30 metres starting from surface. Drill hole DDDBS20-009 intersected 2.38 g/t gold over 20 m from 46 m. Drill hole DDDBS20-006 intersected 2.66 g/t over 17 m from 166.2 m and hole DDDBS20-14 ended in gold mineralization at 247.2 m depth.
Kabaya — DD (diamond) plus RC (reverse circulation) drilling highlights:
10.6 g/t gold over three m from drill hole DDDBS20-003 from 84.6 m:
Including 24.6 g/t gold over one m from 84.6 m;
And 1.64 g/t gold over nine m from drill hole DDDBS20-003 from 57.8 m;
3.09 g/t gold over 9.3 m from drill hole DDDBS20-015 from zero m:
Including 8.73 g/t gold over two m from 4.3 m;
2.96 g/t gold over 30 m from drill hole DDDBS20-008 from zero m:
Including 11.7 g/t gold over two m from 26 m;
And 1.54 g/t gold over 15 m from drill hole DDDBS20-008 from 34 m;
2.66 g/t gold over 17 m from drill hole DDDBS20-006 from 166.2 m:
Including 7.45 g/t gold over two m from 171.2 m;
And 1.07 g/t gold over 15 m from drill hole DDDBS20-006 from 143.2 m;
2.38 g/t gold over 20 m from drill hole DDDBS20-009 from 46 m:
Including 11.9 g/t gold over one m from 64 m;
1.93 g/t gold over seven m from drill hole DDDBS20-014 from 233.2 m;
1.71 g/t gold over 13 m from drill hole DDDBS20-010 from zero m;
1.65 g/t gold over nine m from drill hole RCDBS20-06 from 74 m;
1.47 g/t gold over 21 m from drill hole RCDBS20-005 from 109 m:
And 0.79 g/t gold over 16 m from drill hole RCDBS20-005 from 90 m;
1.28 g/t gold over 18 m from drill hole RCDBS20-002 from 141 m.
Since acquiring Kabaya in June, 2020, all 23 holes drilled intersected gold mineralization, which reflects a 100-per-cent drill success rate. The Kayaba deposit has a pit-constrained mineral resource to a depth of 58 m, which contains 105,000 ounces of indicated resource and 35,000 ounces of inferred resource. The company has now established mineralization to a depth of 196 m, which remains open.
The independent qualified person for this resources estimate is Yann Camus, Eng, SGS Canada Inc.
The mineral resources are presented at a 0.4 g/t Au cut-off grade in pits.
The resources are presented without dilution.
Whittle pits have been utilized based on a gold value of $1,350 (U.S.)/ounce.
Mineral resources that are not mineral reserves do not have demonstrated economic viability.
No economic evaluation of the resources has been produced.
This resource estimate has been prepared in accordance with CIM (Canadian Institute of Mining, Metallurgy and Petroleum) definitions (2014).
Density used is 1.7 based on measurements and similar projects.
Capping grade is of 30 g/t Au on original assays.
Based on the disclosure of National Instrument 43-101, Section 2.4:
The source is Komet’s NI 43-101 that is effective Jan. 7, 2019.
The company considers the reliably and relevance to be reasonable.
The key assumptions are listed above.
The categories are similar.
There are no recent estimates.
Exciting results from hole DDDBS20-014, which intersected 1.93 g/t gold over seven m from 233.2 m and ended in gold mineralization at 247.2 m, has reinforced the need for even deeper drilling. The recent addition of the company’s sixth rig, which has a maximum depth drilling capability of 1,400 m, will greatly facilitate this deeper drilling (see news release dated Jan. 5, 2021). The Kabaya deposit remains open at depth and along strike and has become another priority target for follow-up drilling in 2021.
Roscan believes that the Kabaya deposit is part of a significant structural corridor which spans from Oklo Resources discoveries of Seko and Disse, to the northeast of the company’s land package and then extends for 22 kilometres on the company’s property, from Kabaya to the company’s recent Kandiole North discovery (KN2) and onto the company’s recently acquired Mankouke West land package, which shows a strong magnetic signature similar to the other discoveries on this corridor. Much of this 22 km corridor has yet to be tested and thus Roscan feels that the potential for new discoveries in this corridor is excellent and connecting these multiple targets via stepout drilling will be a key priority in 2021.
Nana Sangmuah, president and chief executive officer, stated: “These are very exciting times for the company as we continue our success rate with additional positive results at Kabaya. These results demonstrate the potential of the magnetic structure in the corridor that extends for 22 km from Kabaya to our newly acquired Mankouke West target. This is one of five major trends of gold mineralization on our property and we will continue to aggressively drill to build ounces on these targets in 2021.
“Since acquiring Kabaya in 2020, we have extended the average depth of mineralization from 58 m to a vertical depth of 196 metres. Importantly, hole DDDBS20-014 our deepest intercept to date, ended in gold mineralization and remains open. This projected depth potential in gold mineralization and fresh rock will be another high priority for the company. The drilling results, to date, have shown the potential to significantly increase the size of the gold occurrence at Kabaya.”
The gold mineralization at Kabaya is associated with albite-dolomite-pyrite alteration in greywackes and diamictites of the Kofi formation. The alteration observed in the core indicates a strong hydrothermal system commonly associated with gold deposits in this area.
Drilling contract and analytical protocol
The drilling was performed by Geodrill, which employs multipurpose (AC/RC/DD) rigs and AC rigs at the Kandiole project. The AC drilling is mainly focused on drilling exploration targets.
The diamond core and RC samples are sent for preparation to Bureau Veritas Mineral Laboratories in Bamako, Mali, and assayed at its analytical facilities in Bamako and in Abidjan, Ivory Coast, with fire assay with atomic absorption finish and by gravimetric finish for grades above 10 g/t Au.
Roscan applied industry-standard QA/QC procedures to the program. Certified reference materials, blanks and field duplicates are inserted at appropriate intervals.
Anaconda Mining Inc. has released final drill results from its completed infill drill program at its 100-per-cent-owned Goldboro gold project in Nova Scotia, Canada. The drill program comprised 17,941.7 metres of diamond drilling and was designed to convert priority inferred mineral resources to measured and indicated mineral resources of the Goldboro deposit as part of a mineral resource update anticipated for the first quarter of 2021 and as part of the continuing feasibility study.
Results from the most recent drilling, comprising 2,148.2 metres from 15 diamond drill holes, all reflect near-surface targets (greater than 175 vertical metres) at both the West Goldbrook gold system and the Boston Richardson gold system. The drilling was focused on shallow levels of the deposit to further evaluate the opportunity for an expanded open-pit mining scenario, as identified through the continuing feasibility study. The results demonstrate continuity of mineralization within the infill drill areas at both the WG and BR gold systems in areas explored. A total of eight visible gold occurrences were observed in these drill holes.
Selected composited highlights (core length) from the drill program include:
1.86 grams per tonne gold over 14.5 metres (55.5 to 70.0 metres) and 2.78 g/t gold over 4.5 metres (44.0 to 48.5 metres) and 1.31 g/t gold over 5.5 metres (19.0 to 24.5 metres) in hole BR-20-221;
1.37 g/t gold over 21.5 metres (72.0 to 93.5 metres) including 26.80 g/t gold over 0.5 metre in hole BR-20-219;
2.08 g/t gold over 9.0 metres (130.0 to 139.0 metres) including 12.20 g/t gold over 1.0 metre in hole BR-20-216;
8.56 g/t gold over 2.0 metres (39.0 to 41.0 metres) including 16.70 g/t gold over 1.0 metre in hole BR-20-224;
2.66 g/t gold over 5.6 metres (121.2 to 126.8 metres) including 9.72 g/t gold over 0.8 metre in hole BR-20-210.
“Anaconda’s extensive infill drill program at its Goldboro gold project was very successful in infilling areas of priority inferred mineralization at shallow levels of the deposit. Importantly this was achieved while maintaining strong safety protocols given the ongoing impact of the global pandemic. Based on the positive drill results from this program, we are confident as we progress towards the announcement of a mineral resource update in Q1 2021, which, together with advanced metallurgical work, will allow us to complete detailed pit design to support a potential expanded surface mining operation using conventional open-pit mining methods. In addition, as part of the ongoing mineral resource evaluation, we have recognized additional opportunity, within the central portions of the deposit, to convert further inferred mineral resources to indicated and measured categories, potentially further expanding surface mining potential at Goldboro. We plan further drilling in the near term to unlock the value recognized in these specific areas of the deposit once we have completed the full evaluation of the results from our recent program,” said Kevin Bullock, president and chief executive officer, Anaconda Mining.
To date, a total of 17,941.7 metres in 121 drill holes (BR-20-105 to BR-20-224) have been completed under the drill program, with assays from drill holes BR-20-105 to BR-20-215 previously reported in news releases dated Sept. 3, 2020, Oct. 5, 2020, Nov. 11, 2020, Nov. 19, 2020, and Jan. 5, 2020. This release outlines the results for 2,148.2 metres in 15 diamond drill holes, including BR-20-202, 207, 210 to 211, 213 and from BR-20-216 to BR-20-224 including BR-20-222a, which was abandoned at 46 metres and redrilled in BR-20-222. Drill holes BR-20-133, -157, -163, -167, -169 and -171, totalling 639 metres, were drilled for metallurgical purposes and any assay data for these holes will be reported in the future as results become available.
The drill program is financed using existing flow-through funds but has also benefited from a grant received from the government of Nova Scotia through a mineral resources development fund, shared funding exploration grant MRDF-2020-SF-035.
The company has critically considered logistical matters given the continuing COVID-19 pandemic, to ensure that this drill program and any other programs are executed in a way that ensures the absolute health and safety of the company’s personnel, contractors and the communities where the company operates.
SELECTED COMPOSITE HIGHLIGHTS WITHIN THIS NEWS RELEASE FROM THE DRILL PROGRAM
Hole ID From To Interval* Gold
(m) (m) (m) (g/t)
BR-20-202 119 119.5 0.5 1.51
BR-20-207 159.5 160 0.5 1.43
and 200.7 203 2.3 2.96
including 200.7 201.2 0.5 11.8
and 230 231.5 1.5 1.53
and 235.8 236.3 0.5 14.5
and 270 272.5 2.5 1.42
including 270 270.5 0.5 4.55
and 294 295 1.0 3.81
and 298 298.5 0.5 2.12
and 300.5 301.5 1.0 1.88
and 309 309.5 0.5 4.99
BR-20-210 52 52.7 0.7 0.51
and 74.4 74.9 0.5 20.3
and 107 110.2 3.2 0.67
and 121.2 126.8 5.6 2.66
including 125 125.8 0.8 9.72
and 126.3 126.8 0.5 6.66
and 216.4 217.2 0.8 3.54
BR-20-211 105.8 106.8 1.0 2.62
and 157 157.5 0.5 5.26
and 175 176 1.0 0.84
BR-20-213 137.5 138 0.5 1.19
and 173.5 174.5 1.0 0.68
and 184 185 1.0 0.54
and 224.7 225.2 0.5 0.64
and 238.8 239.8 1.0 1.13
and 244.7 245.5 0.8 2.66
and 247.5 248.5 1.0 0.83
and 259.5 260 0.5 1.93
and 263 263.7 0.7 0.66
and 272.9 273.5 0.6 1.57
BR-20-216 91 92 1.0 0.68
and 104 105 1.0 4.51
and 123 123.5 0.5 0.89
and 130 139 9.0 2.08
including 133.5 134.5 1.0 12.2
and 144.5 145 0.5 3.91
BR-20-217 84 84.5 0.5 17.5
and 98 99 1.0 1.61
and 110 111 1.0 2.03
and 119 122 3.0 0.9
and 126 127 1.0 0.63
and 132 133 1.0 0.69
BR-20-218 67 67.5 0.5 0.8
and 88.7 89.2 0.5 5.7
and 94 95 1.0 0.88
and 98.7 99.2 0.5 1.47
and 108 111.5 3.5 1.66
and 126 128 2.0 1.19
BR-20-219 15.5 16.5 1.0 1.46
and 21 22 1.0 0.72
and 34 35.5 1.5 0.89
and 59.5 61.5 2.0 2.13
and 68.5 69.5 1.0 0.79
and 72 93.5 21.5 1.37
including 87 87.5 0.5 26.8
BR-20-220** 43 44 1.0 0.94
BR-20-221 19 24.5 5.5 1.31
including 20.5 21 0.5 9.16
and 44 48.5 4.5 2.78
and 51.5 52 0.5 1.62
and 55.5 70 14.5 1.86
including 61 61.5 0.5 6.08
and 91.5 93.5 2.0 0.63
and 97 100.5 3.5 1.78
and 120 121 1.0 1.65
BR-20-223** 13 17 4.0 2.68
and 24 29 5.0 1.01
and 38 41 3.0 1.22
and 45 55 10.0 2.74
including 51 52 1.0 14.7
and 63 66 3.0 1.1
BR-20-224** 21.6 25 3.4 1.01
and 33 34 1.0 1.23
and 39 41 2.0 8.56
including 40 41 1.0 16.7
and 59 59.5 0.5 1.18
and 71 73 2.0 0.59
* Intervals are reported as core length only. Please refer to notes regarding
true width.
** Eleven of the drill holes (BR-20-202, -207, -210, -213 and -219 to 224) were
drilled off section resulting in broader drill core intercepts that
overemphasize apparent mineralized width. The true widths of these drill
intercepts range between 70 and 100 per cent except for holes BR-20-220, -223
and -224, which have true widths estimated at 60 per cent, 30 per cent and 50
per cent of core length, respectively. These holes were drilled off section
due to issues with access due to location of wetlands.
This news release has been reviewed and approved by Paul McNeill, PGeo, vice-president, exploration, with Anaconda Mining, a qualified person, under National Instrument 43-101 Standards of Disclosure for Mineral Projects.
All samples and the resultant composites referred to in this release are collected using quality assurance/quality control protocols including the regular insertion of standards and blanks within the sample batch for analysis and check assays of select samples. All samples quoted in this release were analyzed at Eastern Analytical Ltd. in Springdale, Nfld., for Au by fire assay (30 g) with an AA (atomic absorption) finish.
All assays in this press release are reported as fire assays only. For samples analyzing greater than 0.5 g/t Au via 30 g fire assay, these samples will be reanalyzed at Eastern Analytical via total pulp metallics. For the total pulp metallics analysis, the entire sample is crushed to minus-10 mesh and pulverized to 95 per cent minus 150 mesh. The total sample is then weighed and screened to 150 mesh. The plus-150-mesh fraction is fire assayed for Au, and a 30 g subsample of the minus-150-mesh fraction analyzed via fire assay. A weighted average gold grade is calculated for the final reportable gold grade. Total pulp metallics assays for drill holes sited within this press release will be updated in a future news release.
Freeman Gold begins metallurgical testwork at Lemhi
Freeman Gold Corp. has commenced metallurgical testwork on its 100-per-cent-owned Lemhi gold project located in Idaho, United States. This work is part of Freeman’s integrated technical program to advance towards a production decision. A comprehensive review of the historical information and test work conducted by previous operators has been completed. Freeman’s metallurgical team has designed a test work program to follow-up and enhance gold recoveries, ultimately leading to a project flowsheet for the Lemhi Project. The Company is utilizing samples from both historical and fresh drill core from the 2020 exploration drill program.
Will Randall, President & CEO, commented, “We have a very strong foundation of metallurgical test work from previous operators of the Lemhi project which indicate excellent recoveries using conventional leach technologies. This body of work has saved us considerable time and money in designing a metallurgical program that will provide an optimal process and recovery parameters at Lemhi. As part of our 2020 drill campaign, we completed a large diameter diamond drill hole providing us valuable material for the testing program which will be conducted at SGS Canada.”
A review of metallurgical evaluations by previous owners of Lemhi has shown that gold recoveries respond well to conventional processing techniques. Past engineering studies has also shown that Lemhi has the potential to be developed into an open pit, heap and/or tank leach operation.
Historical test work focused primarily on cyanide leaching, most recently in the mid-1990s, by Kappes Cassiday & Associates (“KPA”) of Reno, NV. Column leach tests by KPA to evaluate heap leach potential showed gold recovery ranged from the seventy to ninety percent range, with best results obtained using a crush size of 80 percent minus 8 mesh (2.4 mm). Additional work by KPA included bottle roll testing to simulate tank leaching response that typically resulted in optimized gold recoveries in the mid-ninety percent range. The results vary based on the head grade and lithology of the samples, along with test conditions used, most notably particle size and leach retention time. In general, the historic metallurgical information shows good to excellent leach response over wide spatial areas and depth of the known gold mineralization.
In order to advance process development at Lemhi, a 2021 metallurgical testing program is to be conducted at SGS Canada Inc., Burnaby, BC, under the direction of Frank Wright, P.Eng. This study will continue to focus on leach response, as well as investigate optional procedures, including froth flotation, primarily for deeper less oxidized material, and for establishing design and operating parameters for crushing, grinding, and leaching circuits.
The technical content of this release has been reviewed and approved by Dean Besserer, P. Geo., VP Exploration for the Company and a Qualified Person as defined by the National Instrument 43-101.
Superior Gold appoints Marantelli as director
Superior Gold Inc. has appointed Damien Marantelli to its board of directors.
“We are very pleased to welcome Damien to our board of directors. His extensive industry experience, operational expertise and being located in Western Australian will be a great asset to Superior Gold and will complement the skill set and experience of our existing board members,” commented Superior Gold’s chairman, Mark Wellings.
Mr. Marantelli is an experienced mining engineer with extensive operational and leadership experience across a variety of commodities and brings 40 years of international mining industry experience to the company. Mr. Marantelli’s most recent roles have been chief executive officer and director of Metals X; chief operating officer of Primero Mining; and senior management positions with First Quantum Minerals, Inmet Mining and WMC Resources. Previously, Mr. Marantelli held the role of general manager of the Sentinel copper mine in development by First Quantum Minerals, where he was responsible for leading approximately 3,500 employees through the final stages of commissioning and ramp-up of open-pit and processing operations. He was also the managing director of First Quantum Minerals’ (previously Inmet Mining’s) Las Cruces copper mine and the managing director of the Cayeli underground copper and zinc mine. Prior to this, Mr. Marantelli was the general manager of BHP Billiton’s (previously WMC Resources’) Mount Keith operations and oversaw the expansion of annual capacity from 18 million to 40 million bank cubic metres per year over a two-year period.
The company will grant Mr. Marantelli, subject to the terms and conditions of the company’s stock option plan and the receipt of regulatory approval, options to purchase 200,000 common shares of the company with a five-year term.
Alpha Li receives Tollilar phase 2 drilling licences
ALPHA LITHIUM RECEIVES DRILLING LICENSE FOR PHASE TWO OF DRILLING AT TOLILLAR LITHIUM PROJECT IN ARGENTINA Alpha Lithium Corp. has received approval and drilling licences for phase 2 of its three-phase drilling program on Alpha’s 100-per-cent-owned, 27,500-hectare Tolillar salar.
The drilling licenses replaced the previous licenses that had expired and could not be renewed during government COVID shutdowns. These licenses allow the company to initiate Phase Two of the Company’s three-phase drilling program (see press release January 12, 2021) for a complete summary of the three-phase drilling program) and drill at least two deeper wells on the eastern and southern portions of the salar.
Drilling of Phase Two is expected to commence immediately after Phase One is complete, in the coming weeks.
The Company started drilling its six-well, three-phase drilling program at the start of December (see press release December 1, 2020). All planned drilling operations on the first well are complete and the crew has now moved on to the second well in the program.
The Company’s 27,500-hectare Tolillar Salar is one of the largest untested salars in Argentina and is 100% owned by Alpha Lithium. Previous drilling and sampling of the salar has established the presence of lithium across the tremendous arial extent of the Tolillar Salar and the current drill program is an additional step towards the completion of a 43-101 Resource Estimate.
Alpha recently added a renowned group of lithium chemistry experts to its team (see press release November 18, 2020) for the purpose of examining and evaluating different Direct Lithium Extraction (“DLE”) techniques that have been shown to economically extract lithium at concentrations as low as 100 mg/L.
Brad Nichol, Chief Executive of Alpha, commented, “While the news of receiving our Phase Two drilling licenses was expected, it is still very exciting to be readying ourselves for drilling to greater depths and defining the extent of the Tolillar Salar. All wells in this drilling program are being drilled as production wells, not just core holes. Previous campaigns and tests have provided us with the evidence of lithium and confidence to drill producible wells so that our internal lithium chemistry experts can begin the sampling and testing of different DLE technologies on our exact brine. This will allow us to move very quickly into the production phase at the Tolillar Salar. To that end, we have made significant progress with several DLE technology companies and hope to have news of that progress in the future.”
Audiences publiques webdiffusées sur le projet Rose lithium-tantale de Corporation Lithium Éléments Critiques
MONTRÉAL, QC / ACCESSWIRE / 18 janvier 2021 / Corporation Lithium Éléments Critiques (la « Société » ou « Critical Éléments ») (TSXV:CRE)(OTCQX:CRECF)(FSE:F12) souhaite partager une mise à jour concernant le Projet Rose lithium-tantale (le « Projet Rose lithium-tantale » ou le « Projet »).
La propriété Rose lithium-tantale (où est proposé le Projet Rose lithium-tantale) est située dans la région administrative du nord du Québec, sur le territoire de la Baie-James Eeyou Istchee, sur des terres de catégorie III, sur les terres traditionnelles de la Nation crie d’Eastmain.
La Société a été informée par le président du Comité d’examen des répercussions sur l’environnement et le milieu social (« COMEX ») que les audiences publiques se tiendront en après-midi les 15 février 2021 à Matagami, 16 février 2021 à Eastmain et 18 février 2021 à Nemaska. Considérant le contexte actuel de la pandémie de la COVID-19, les audiences publiques seront tenues en format virtuel, via l’application Zoom, et seront diffusées en direct via Facebook et LiveStream. Le COMEX a prévu qu’une salle sera réservée dans chacune des communautés afin que les personnes qui désirent se réunir sur place puissent le faire, le tout dans le respect des normes sanitaires en vigueur. Le COMEX a pour mission de contribuer à la protection de la santé et de l’environnement ainsi qu’au bien-être économique et social des populations habitant le territoire défini par la Convention de la Baie-James et du Nord québécois (CBJNQ), situé au sud du 55e parallèle. Une fois la procédure d’évaluation et d’examen des impacts sur l’environnement et le milieu social du Projet complétée, le COMEX transmettra sa recommandation quant à l’autorisation du Projet par les autorités provinciales.
« Nous sommes très heureux du début des audiences publiques sur notre Projet minier Rose lithium-tantale. Cette étape importante en vue de l’obtention des autorisations gouvernementales pour aller de l’avant avec le Projet nous permettra d’entendre, une fois de plus, le point de vue des citoyens. Depuis le début du Projet, nous travaillons en étroite collaboration avec les communautés locales et en particulier avec la Nation crie d’Eastmain et ce, dans le but d’avoir un projet bien implanté dans son milieu », explique Jean-Sébastien Lavallée, chef de la direction de Critical Éléments.
Dès 2012, Critical Éléments a conclu une entente de pré-développement avec le Grand Conseil des Cris (Eeyou Istchee), le Gouvernement de la Nation crie (alors l’Administration régionale crie) et la Nation crie d’Eastmain, qui a jeté les bases d’une relation de coopération et de respect mutuel entre les parties et a mené à la signature de l’Entente Pikhuuutaau (une entente sur les répercussions et les avantages) en juillet 2019. Au cours des dernières années, Critical Éléments a participé à plusieurs rencontres avec le Chef et le conseil de la Nation crie d’Eastmain, ainsi qu’à plusieurs rencontres et séances d’information dans la communauté.
Le Projet minier Rose lithium-tantale s’inscrit parfaitement dans les orientations gouvernementales que l’on retrouve dans le Plan québécois pour la valorisation des minéraux critiques et stratégiques 2020-2025 et le Plan pour une économie verte 2030. En effet, le lithium et le tantale sont très prisés mondialement dans les secteurs industriels, incluant pour le marché des voitures hybrides et électriques, à cette époque d’intérêt grandissant pour la transition énergétique.
« L’économie de demain devra miser sur des filières stratégiques, tel le domaine des véhicules électriques et des batteries. Cela correspond en tous points à notre vision qui est de devenir un important fournisseur responsable de lithium pour les industries florissantes des véhicules électriques et des systèmes de stockage d’énergie. Nous représentons parfaitement le développement durable avec un projet non seulement bon pour l’environnement, mais bon pour le développement des communautés locales », conclut Jean-Sébastien Lavallée.
À propos de Corporation Lithium Éléments Critiques
Le Groupe Primero a récemment complété la première phase du contrat d’implication anticipée de l’entrepreneur intervenue avec la Société et a fourni un prix maximum garanti pour l’ingénierie, l’approvisionnement et la construction du projet Rose lithium-tantale détenu à 100 % par la Société. Ce coût forfaitaire est dans le même ordre de grandeur que les coûts estimés dans l’étude de faisabilité publiée le 29 novembre 2017 et basée sur des prédictions de prix de 750 $ US/tonne de concentré de lithium de qualité chimique (5 % Li2O), de 1 500 $ US/tonne de concentré de lithium de qualité technique (6 % Li2O), et de 130 $ US/kg pour le Ta2O5 contenu dans le concentré de tantalite et un taux de change de 0,75 $ US/$ CA. Le taux de rendement interne (« TRI ») du projet Rose lithium-tantale est estimé à 34,9 % après impôts et la valeur actualisée nette (« VAN ») à 726 millions $ CA à un taux d’escompte de 8 %. La période de recouvrement est estimée à 2,8 ans. Le TRI avant impôts du projet Rose lithium-tantale est estimé à 48,2 % et la VAN avant impôts à 1 257 millions $ CA à un taux d’escompte de 8 % (voir communiqué du 6 septembre 2017). L’analyse financière repose sur les ressources minérales indiquées. Une ressource minérale indiquée est la partie d’une ressource minérale dont la quantité, la teneur ou la qualité, les densités, la forme et les caractéristiques physiques peuvent être estimées avec un niveau de confiance suffisant pour permettre l’application appropriée des paramètres techniques et économiques, la planification minière et l’évaluation de la viabilité économique du dépôt. Le plan de minage prévoit l’extraction de 220,2 Mt de matériel composé de 26,8 Mt de minerai, 182,4 Mt de stériles et 11,0 Mt de morts-terrains. Le ratio de décapage moyen est de 7,2 tonnes de stériles par tonne de minerai. Le taux de production nominal a été estimé à 4 600 tonnes par jour, pour 350 jours d’exploitation par année. Le plan d’exploitation à ciel ouvert permet une durée de vie de la mine de 17 ans. La mine produira un total de 26,8 millions de tonnes de minerai ayant une teneur diluée moyenne de 0,85 % de Li2O et 133 ppm de Ta2O5. L’usine traitera 1,61 million de tonnes de minerai par année, pour une production annuelle moyenne de 236 532 tonnes de concentré de spodumène de qualité technique et chimique et 429 tonnes de concentré de tantalite.
Superior Gold produces 63,065 oz Au in 2020
Superior Gold Inc. has released detailed production results for the fourth quarter and full year 2020 and provides full-year 2021 guidance for the company’s 100-per-cent-owned Plutonic gold operations, located in Western Australia. All currency figures are in U.S. dollars unless otherwise stated.
Recorded zero incidences of COVID-19 infection for a fourth consecutive quarter;
Production of 15,838 ounces, in line with the company’s internal plan with sales of 15,855 ounces;
Stope grade increased by a further 5 per cent to 3.1 grams per tonne gold, representing an improvement for a second consecutive quarter and in line with the company’s near-term goal of targeting higher-grade, higher-margin ounces;
Strengthened the company’s financial position with the completion of a $17.3-million (Canadian) equity financing;
Completed an accretive transaction through the repurchase of the 2-per-cent net smelter royalty for $6.5-million (Australian);
Announced positive results for the Plutonic Main pit pushback preliminary economic assessment (PEA) with an after-tax net present value (5-per-cent discount rate) of $120-million (Australian) and an after-tax internal rate of return of 35 per cent at a gold price of $1,505 per ounce;
Updated measured and indicated mineral resources at the Plutonic gold operations of 1.89 million ounces of gold (16.3 million tonnes at a 3.6 g/t Au grade);
Updated inferred mineral resources at the Plutonic gold operations of 3.07 million ounces of gold (30.6 million tonnes at a 3.1 g/t Au grade);
Arrival of new underground mobile equipment resulting in significant increase in productivities and equipment availability in the latter part of the fourth quarter;
Arrival of a third underground drill late in the fourth quarter, which is dedicated to exploring for new mining fronts.
Full-year highlights:
Safely operated through the global pandemic with zero incidences of COVID-19;
Achieved full-year revised guidance with production of 63,065 ounces and sold 63,732 ounces;
Repaid $8.0-million of the Auramet gold loan, with the remaining $4.4-million scheduled to be fully repaid by June 30, 2021;
Exited the year with a strong financial position of $17.3-million in cash and cash equivalents after the repurchase of the 2-per-cent net smelter royalty, delivery into hedges as part of the Auramet gold loan, and capital expenditures necessary to improve performance and accelerate underground development.
Tamara Brown, interim chief executive officer of Superior Gold, stated: “We are very pleased to have achieved our revised 2020 production guidance while also advancing the strategic projects necessary to reposition Plutonic for sustainable, long-term success. The operational initiatives that we put in place in mid-2020 have begun to have a positive impact. Our productivities improved during the fourth quarter with the arrival of new mining equipment and our underground stope grade increased for a second consecutive quarter, improving by 9 per cent in the second half of the year over the first half, highlighting our renewed focus on profitability.
“During the quarter, we invested in upgrading our underground fleet, completing a raise at the TSF, upgrading our airstrip and announced the PEA results for the Plutonic Main pit pushback project. This project has the potential to provide a steady open-pit feed supply for six years, which we believe starts to unlock the significant value sitting within the Plutonic gold operations (refer to the press release dated Dec. 2, 2020). It is a technically simple, high-return, brownfield gold project in one of the most favourable mining jurisdictions in the world, with all necessary infrastructure already in place. Looking forward, we will continue our work to further enhance the economics of the project through the removal of open-pit constraints, resource expansion and exploration drilling.
“Our 2021 guidance reflects additional investment to open new underground mining fronts plus the commencement of open-pit mining midyear, resulting in an expected improvement in our grade profile due to less mineralized waste being processed. These investments will ensure that a fully optimized underground operation, combined with the addition of new sources of open-pit feed and the repayment of our gold loan by mid-2021, will result in a significant improvement in our overall profitability over the course of 2021 and beyond.”
The company will be releasing its complete financial and operating results for the fourth quarter and full year 2020 in March, 2021.
FOURTH QUARTER AND FULL-YEAR 2020 PRODUCTION DETAILS
Operating parameters Three months ended Dec. 31, 2020 12 months ended Dec. 31, 2020
Stope material mined (tonnes) 139,159 600,625
Stope grade mined (g/t Au) 3.12 2.90
Development material mined (tonnes) 56,952 243,093
Development grade mined (g/t Au) 1.75 1.93
Surface material milled (tonnes) 167,501 681,227
Surface material grade (g/t Au) 0.34 0.31
Total material milled (tonnes) 365,520 1,505,350
Grade milled (g/t Au) 1.61 1.58
Gold recovery (%) 84 83
Gold produced (ounces) 15,838 63,065
Gold sold (ounces) 15,855 63,732
Cash and cash equivalents ($ million) $17.3 $17.3
(1) Numbers may not add due to rounding.
(2) Surface material milled in Q4 and full year 2020 is primarily the processing of low-grade stockpile.
2021 guidance
Details of production, cost and capital expenditure guidance for 2021 are summarized in the associated table. It is anticipated that the first quarter will be the weakest, but progressively improve as the company commences open-pit mining midyear and continue to build up developed underground inventory.
Operating parameters Low High
Production (oz of gold) 65,000 75,000
Cash costs ($/oz) $1,350 $1,450
All-in sustaining costs ($/oz) $1,500 $1,600
Exploration expenditure ($ million) $3.5M-$6.5M
Sustaining capital expenditures ($ million) $4.0M-$4.5M
Non-sustaining capital expenditures ($ million) $3.0M-$5.0M
Open-pit production in 2021
Detailed work is continuing to optimize several potential open-pit sources and to finalize resources and scheduling. These pits comprise the Plutonic East, Perch and Salmon pits on the Plutonic mine property, along with the Hermes and Hermes South pits to the southwest. It is anticipated that production from the Plutonic East pit will commence in mid-2021, as final mining permits have already been received. The company aims to utilize the production from these open pits plus the Main pit pushback, along with operational improvements from the underground, to return the Plutonic gold operations to a state of significant free cash flow generation.
QMX Gold files Bonnefond South report on SEDAR
QMX Gold Corp. has filed on SEDAR a technical report titled “Mineral Resource Estimate Update For the Bonnefond South Intrusive Project.” The Technical Report effective date is October 31, 2020. The Bonnefond South property is located approximately 25 km to the east of Val d’Or, Quebec (Figure 1) and was completed by BBA Inc. in accordance with National Instrument 43-101 standards and rules. The report was prepared by Mr. Pierre-Luc Richard, P.Geo.; Mrs. Charlotte Athurion, P.Geo. and Mr. Jeffrey Cassoff, P.Ing. from BBA Inc., all are “Qualified Persons” as defined by NI 43-101.
An overall increase of 53% of the resources in the indicated category
An overall increase of 100% of the resources in the inferred category
A first underground resource of 140,600 oz @ 4.52 g/t Au, demonstrating the underground potential of the project {ݾ –} opening up a target zone between 350m and 1,000m depth
A new geological model with stronger control of the mineralized envelopes
“We are extremely pleased to have completed another chapter in the success of the Bonnefond deposit,” comments Brad Humphrey, Chief Executive Officer of QMX. “The Technical Report demonstrates the open pit and underground potential of this very robust resource model. The rapid increase in ounces over a very short period of time, is both a testament to our strong team and the quality of our property.”
The report is available on SEDAR (https://www.sedar.com) and QMX website (www.qmxgold.ca). The report supports the interim update of its mineral resource estimate announced by the Company on December 2, 2020 (News release, December 2, 2020).
The independent qualified persons for the Technical Report, as defined by NI 43-101 guidelines, are Charlotte Athurion, P,Geo., and Pierre-Luc Richard, P. Geo., both of BBA Inc. The effective date of the estimate is October 31, 2020.
These mineral resources are not mineral reserves as they have not demonstrated economic viability. The quantity and grade of reported inferred resources in mineral resource estimate in the Technical Report (the “MRE”) are uncertain in nature and there has been insufficient exploration to define these inferred and indicated resources as measured; however, it is reasonably expected that the majority of inferred mineral resources could be upgraded to Indicated mineral resources with continued exploration.
The cut-off grade used for the MRE was 0.60 g/t Au for the open pit material, 2.70 g/t for the underground material inside the V2 unit (where the mineralized orebody has a dip greater than 40degree) and 3.4 g/t for the underground material outside the V2 unit (where the mineralized ore body has a dip lower than 40degree). The cut-off grade was calculated using the following parameters (amongst others): Gold price = USD $1,450, CAD: vs. USD exchange rate = 1.32, Mining cost = $110-150/t for underground and $3.50/t for open-pit, Processing cost = $26.50/t processed, G&A = $4.00/t processed for open-pit and $15.00/t for underground, Transportation cost = $5.00/t processed. The cut-off grade will be re-evaluated in light of future prevailing market conditions and costs. All costs are represented in Canadian dollars unless otherwise stated.
Resources are presented as undiluted and in situ for an open-pit and underground scenario and are considered to have reasonable prospects for economic extraction. The open-pit resources are constrained within a pit shell that was developed via a pit optimization analysis using Hexagon’s MinePlan 3D software version 15.70. The pit optimization analysis was carried out using overall pit slopes of 50degree in rock and 26.5degree in overburden. A mining dilution of 5% and a mining recovery of 95% were considered. The pit shell that was selected for the MRE was the one that was run at a Revenue Factor (RF) equal to 1.2. Other parameters are the same as those that were used for the cut-off grade (see above). The open-pit has a stripping ratio of 8.5 to 1.
In order to determine the quantity of mineralization that shows a “reasonable prospect for eventual economic extraction” using underground mining methods, a series of clipping boundaries were created manually in longitudinal and 3D views to isolate potential mineable volume of blocks above the cut-off grades. When blocks below the cut-off grades were contained inside those volumes, they were included in the MRE as internal dilution material. Isolated blocks or groups of blocks with not enough continuity to be considered as minable shapes were then removed from the mineral resource estimate.
The MRE was prepared using Geoviatrademark GEMS 6.8.3 and is based on 266 surface drillholes, of which 181 intercepted the block model limits, with a total of 30,639 assays. The resource database was validated before proceeding to the resource estimation. Grade model resource estimation was calculated from drillhole data using an OK interpolation method in a block model using blocks measuring 5m x 5m x 5m in size. The cut-off date for drillhole assays was October 15, 2020.
The model comprises 16 mineralized shear zones (which have a minimum thickness of 3m), and two mineralized units (Tonalite and Diorite), each defined by individual wireframes.
High-grade capping was done on the composited assay data and established on a per unit basis. Capping grades used are 1.5 g/t Au for the Diorite unit, 6 g/t Au for the Tonalite unit, and ranging from 2 g/t Au to 35 g/t Au for the shear zones. A value of zero grade was applied in cases of core not assayed.
Fixed density values were established on a per unit and per mineralization type basis, corresponding to the median of the SG data of each unit ranging from 2.67 to 2.84. A fixed density of 2.00 g/cm3 was assigned to the overburden.
The MRE presented herein is categorized as an inferred and indicated resource. The inferred mineral resource category is defined for blocks that are informed by a minimum of two drillholes where drill spacing is less than 100m. Indicated mineral resources were defined for the mineralization contained in the constraining pit shell only where blocks have been informed by a minimum of three drillholes and where drill hole spacing is less than 50m. No indicated resource was defined for the underground resources. Where needed, some material has been either upgraded or downgraded to avoid isolated blocks.
The number of metric tons (tonnes) was rounded to the nearest thousand.
CIM definitions and guidelines for MRE have been followed.
The authors are not aware of any known environmental, permitting, legal, title-related, taxation, socio-political or marketing issues, or any other relevant issues not reported in this Technical Report that could materially affect the MRE.
The Bonnefond deposit comprises an intrusive body and series of shear zones transecting the intrusive. The intrusive body has an elliptical shape on plan view, measuring approximately 250m by 95m and dipping at 70degree to the north-east. The northern part of the intrusion is tonalitic body of 250m by 60m while the southern part of the intrusive is more dioritic in its mineral composition. The gold values are associated with free visible gold and disseminated pyrite mineralization; tension and shear quartz-tourmaline veins and stockwork.
From a structural geology point of view, the Bonnefond deposit is characterized by an east-west shear system transitioning from less competent ductile volcanic facies to more competent facies within the intrusive. A series of mineralized shear zones dipping at 45degree to the north transects the intrusive body being shallow on the southern side and deeper on the northern side of the intrusive. They extend through the dioritic part of the Bonnefond intrusive and display shallower dips inside the intrusive. As the tonalitic part of the intrusion is more competent, it suggests that it cracked under the pressure during the active structural phases, creating large flat enriched areas with abundant quartz tourmaline veins and veinlets and intense alteration.
QMX started drilling on the Bonnefond intrusive in 2017 and realized its first major drilling program on the project in 2018. An initial open pit constrained resource was released in 2019 (News release, July 30, 2019).
In order to build the 2020 MRE update, QMX conducted 27,000m of drilling to the Bonnefond deposit. 7,700m of drilling was dedicated to definition drilling to convert resources in the Inferred category to the Indicated category in the open-pit and 19,300m to explore under the 2019 conceptual open pit.
The successful drilling campaigns allowed QMX to substantially improve the geological and structural model of the deposit, particularly within the tonalite. The tighter drilling pattern allowed for a better definition of the mineralized envelope in the intrusive. Also, it was established that the shear zone extends through the tonalite, creating large shallow dipping mineralized envelopes within the intrusive (Figure 3). This better control of the mineralization inside the intrusive allowed the definition of continuous zones with higher grades. The extensive exploration drilling successfully demonstrated the presence of mineralization in several parts of the shear zones in the volcanic lithologies south of the intrusive, opening up a substantial target zone between 350m and 1,000m at depth.
This winter, QMX plans to drill approximately 8,000m to explore the Bonnefond intrusive further at depth with the objective of expanding the current underground resource. In parallel, QMX is conducting a broader 8,000m exploration program testing prospective targets to the east of the Bonnefond deposit.
Previous drilling at Bonnefond intersected 6.48 g/t Au over 73.2m, and 35.56g/t Au over 4.0m at 1,050m in DDH 17215-20-121 (News Release, August 18, 2020) and intersected 185.0m of 2.16 g/t Au in-pit and 11.2m of 10.88 g/t Au at depth in DDH 17315-20-149 (News Release, January 5, 2021).
Millrock Resources Inc. has provided assay results from road cut sampling at the Sunrise prospect, drilling at the Aurora prospect of the West Pogo block and trenching at the E1 prospect, Eagle block, at the 64North gold project, Alaska. 64North is a large project situated near Northern Star’s Pogo Mine. Resolution Minerals (ASX: RML, “Resolution”) is earning an interest in the project by funding exploration.
Broad, low-grade intrusion-hosted gold mineralization was sampled at the Sunrise prospect, West Pogo block. Continuous rock sampling in a road cut leading to the adjacent Aurora prospect area returned:
o 93.0 meters @ 0.29 grams per tonne (“g/t”) gold including
o 27.0 meters @ 0.53 g/t gold with a maximum 1.0 meter interval @ 1.89 g/t gold. Partner Resolution minerals indicates its plans to test the new Sunrise prospect with a Rotary Air Blast (“RAB”) drill in March 2021. Drilling of two holes at the Aurora prospect in November / December 2020 did not result in any significant gold intercepts. Trenching and rock sampling completed at the Eagle prospect in late 2020 returned zones of low grade gold mineralization:
o 12.0 meters @ 0.20 g/t gold including 3.0 meters @ 0.56 g/t gold in Trench ID: 20E1004; and
The final two diamond drill holes (20AU08 and 20AU09) of the 2020 drilling program intersected multiple quartz veins following up on the 7.0 meter-thick quartz vein in hole 20AU07 previously reported. No significant assays were encountered on these last three holes for 2020, despite the technical success. A comprehensive review of the structural data and assays results from the 2020 West Pogo drilling program is underway to determine the next steps for the Aurora, Echo, and Reflection Prospects.
E1 Prospect, Eagle Block
Four trenches totaling 716 meters in length were excavated across the highest priority structures at this prospect. The trenches intersected numerous zones of gold mineralization consistent with intrusion-related-intrusion-hosted style gold mineralization. Trenching and rock sampling completed at the Eagle prospect in late 2020 returned zones of low-grade gold mineralization:
12.0 meters @ 0.20 g/t Au including 3.0 meters @ 0.56 g/t gold in Trench ID: 20E1004; and
26.0 meters @ 0.10 g/t Au in Trench ID: 20E1002
The trenches are located within a large gold geochemical anomaly that measures 10 square kilometers. Resolution indicates it plans to do further work to develop drill targets in 2021 at this prospect.
Sunrise Prospect, West Pogo Block
A previously constructed drill road that runs from the Pogo Mine road to Millrock’s Aurora prospect crosses the Sunrise prospect. Bedrock was exposed over significant lengths in road cuts when the road was constructed. Continuous rock sampling along the road cut has identified a broad zone of low-grade intrusion-hosted gold mineralization. The results are:
93.0 meters @ 0.29 grams per tonne (“g/t”) gold including 27.0 meters @ 0.53 g/t gold with a maximum 1.0 meter interval @ 1.89 g/t gold.
The Sunrise prospect lies just to the south of the Aurora prospect and is approximately four kilometers from Northern Star’s Pogo Mine. The prospect is underlain by a quartz-felspar-biotite granite intrusion crosscut by sheeted quartz veins that contain gold. This style of mineralization is a distinguishing feature of intrusion hosted gold systems. The granite body is overburden-covered, except for a few small outcroppings. A large zone measuring 400 meters by 1,100 meters of anomalous soil sample results overlies the inferred position of the granite body.
Resolution indicates that it is planning a 3,000-meter RAB drilling program with approximately 25 holes to be drilled. The drilling will be done along the existing drill trail leading from the Pogo Mine road to the Aurora prospect. Resolution reports it intends to commence drilling in March 2021.
Quality Control and Quality Assurance
Millrock adheres to stringent Quality Assurance {ᓤ –} Quality Control (“QA/QC”) standards. Drill core was transported to Millrock’s operation base in Fairbanks, Alaska where it was logged, cut and sampled. Drill core and samples were kept in a secure location at all times. For the results presented here, the representative half-core samples and rock samples underwent sample preparation at the Bureau Veritas laboratory in Fairbanks, Alaska, (preparation method code PRP70-250) using 70% to <2 mm Crush and Pulverize 85% to <75 um. Appropriate high, medium and low gold and base metal standards were used by Millrock on a 1:20 basis (5%). Blanks were inserted on a 1:50 basis (2%). The Bureau Veritas laboratory introduces QAQC samples and completes duplicate check assays on a routine basis. Following preparation in Fairbanks the samples were subsequently analyzed at the Bureau Veritas laboratory in Reno, Nevada. Gold was analyzed by Fire Assay (code FA430/AA) with an AAS finish using a 30 gram nominal sample weight. No multi-element analysis was completed on the samples. Inspection of QAQC information indicates that all sample results are within tolerance.
Critical’s Rose to be discussed Feb. 16, Feb. 18
Critical Elements Lithium Corp. has provided an update on the Rose lithium-tantalum project.
The Rose property (where the Rose Lithium-Tantalum Project is proposed) is located in northern Quebec’s administrative region, on the territory of Eeyou Istchee James Bay. It is located on Category III land, on the Traditional Lands of the Cree Nation of Eastmain.
The Corporation has been informed by the Chairman of the Environmental and Social Impact Review Committee ("COMEX") that public hearing sessions will be held in the afternoon of February 15, 2021 in Matagami, February 16, 2021 in Eastmain and February 18, 2021 in Nemaska. Considering the current context of the COVID-19 pandemic, the public hearings will be held virtually, via the Zoom application, and will be broadcast live via Facebook and LiveStream. The COMEX has planned that a room will be made available in each of the communities so that people who wish to gather in person can do so in compliance with current health standards. The COMEX's mission is to contribute to the protection of human health and the environment and the economic and social well-being of the peoples inhabiting the territory governed by the James Bay and Northern Quebec Agreement (JBNQA) that lies south of the 55th parallel. Once the environmental and social impact assessment and review procedure is completed, the COMEX will make a recommendation in respect of the authorization of the Project by provincial authorities.
"We are very happy that public hearings on our Rose Lithium-Tantalum Project are starting. This significant step towards obtaining the governmental authorizations for the go ahead of our Project will, once again, give us the opportunity of hearing the citizens point of view. Since the beginning of our Project, we have worked closely with the communities, particularly the Cree Nation of Eastmain, in order to have a project that is part of the local environment," stated Jean-Sebastien Lavallee, Critical Elements' Chief Executive Officer.
As early as 2012, Critical Elements entered into a pre-development agreement with the Grand Council of the Crees (Eeyou Istchee), the Cree Nation Government (then the Cree Regional Authority) and the Cree Nation of Eastmain, which laid out the basis for the building of a cooperative and mutually respectful relationship between the parties and led to the signing of the Pikhuutaau Agreement (an impact and benefit agreement) in July 2019. Over the years, Critical Elements has participated in multiple meetings with the leadership of the Cree Nation of Eastmain, and in various community meetings and information sessions in Eastmain.
The Rose Lithium-Tantalum Project is in direct line with the governmental orientations contained in the Quebec Plan for the Development of Critical and Strategic Minerals 2020-2025 and the 2030 Plan for a Green Economy. Lithium and tantalum are world renowned in manufacturing and automotive industrial sectors, including for, among others, the market of hybrid and electric cars in this era of increasing interest for energy transition.
"The economy of tomorrow will be driven by strategic sectors, like the electric vehicles and batteries sectors. This vision aligns perfectly with our vision to become a large responsible supplier of lithium to the flourishing electric vehicle and energy storage systems industries. We represent perfectly sustainable development with our project that is, not only good for the environment, but that is good for the development of local communities," concludes Jean-Sebastien Lavallee.
Canada Nickel files Crawford report on SEDAR
Canada Nickel Company Inc. has filed on SEDAR of an amended and restated independent National Instrument 43-101 — Standards of Disclosure for Mineral Projects entitled: “Independent Technical Report and Mineral Resource Estimates Crawford Nickel-Cobalt Sulphide Project: Main Zone (Update) and East Zone (Initial) Deposits” prepared by Scott Jobin-Bevans (PhD, PMP, PGeo), John Siriunas (MASc, PEng) and David Penswick (PEng).
The Amended Technical Report can be found under the Company’s profile at http://www.sedar.com. The Amended Technical Report has been filed further to a review by staff of the Ontario Securities Commission (the “OSC”). The OSC review is now complete.
The Amended Technical Report includes a conceptual pit envelope constraint in order to demonstrate reasonable prospects for eventual economic extraction and updated mineral resource tables. Prior mineral resource estimates, as previously disclosed in the December 4, 2020 Technical Report, were not constrained by conceptual pit envelopes. The addition of a pit constraint resulted in no change to the Measured & Indicated resource in the Higher Grade Core of the Main Zone, a 1.5 kt reduction in contained nickel in the overall Measured and Indicated resource to 1,690 kt, and a 335 kt reduction in contained nickel from the original Inferred resource to 1,183 kt. 90% of the overall reduction in Inferred resources occurred at depths below 300 metres.
In addition, the gram per tonne (g/t) assay values for Palladium (Pd), Platinum (Pt), and Palladium + Platinum (Pd + Pt) included in Table 10-2 of the Amended Technical Report have been corrected for holes CR19-05 to CR19-13.
Disclosure of explorations targets for the Main Zone Pd + Pt reef, two East Zone Pd + Pt reefs and the East Zone nickel domains was also revised to comply with subsection 2.3(2) of NI 43-101.
1. The independent Qualified Person for the Mineral Resource Estimate, as defined by NI 43-101, is Dr. Scott Jobin-Bevans (P.Geo., APGO #0183), of Caracle Creek International Consulting Inc. and Atticus Chile S.A. The effective date of the Mineral Resource Estimate is December 11, 2020.
2. These Mineral Resources are not Mineral Reserves as they do not have demonstrated economic viability. The quantity and grade of reported Inferred Resources in this Mineral Resource Estimate are uncertain in nature and there has been insufficient exploration to define these Inferred Resources as Indicated or Measured, however it is reasonably expected that the majority of Inferred Mineral Resources could be upgraded to Indicated Mineral Resources with continued exploration.
3. A cut-off grade of 0.15% Ni was used for the low-grade domains (Main and East zones) and cut-off grades of 0.25% Ni (Main Zone) and 0.21% Ni (East Zone) were used for the high-grade domains. Cut-offs were determined on the basis of core assay geostatistics and drill core lithologies for the deposit, and by comparison to analogous deposit types. Given the current stage of the Project, the mineral resources contained within the Main and East zone deposits have not been constrained by open pit optimization. The Company is planning to complete open pit optimization and present pit-constrained mineral resources as part of its Preliminary Economic Assessment (“PEA”) scheduled to be completed by the end of the first quarter, 2021.
4. Geological and block models for the Mineral Resource Estimate used data from a total of 62 surface drill holes (51 in the Main Zone and 11 in the East Zone), completed by Spruce Ridge Resources (4 holes in 2018) and Noble Mineral Exploration and Canada Nickel Company (58 holes in 2019-2020). The drill database was validated prior to resource estimation and QA/QC checks were made using industry-standard control charts for blanks, core duplicates and commercial certified reference material inserted into assay batches by CNC and by comparison of umpire assays performed at a second laboratory.
5. Estimates in Table 1 have been rounded to two significant figures.
6. The mineral resource estimates have also been revised in the Amended Technical Report to include a conceptual pit envelope constraint that was developed using the optimization parameters included in the Amended Technical Report. Metal prices used (US$) were $7.75/lb nickel, $15/lb cobalt, $90/tonne magnetite $1,600/oz Pd, and $800/oz Pt. Different pit slopes were used for each layer (in degrees): 9.5 in clay, 21.8 in gravel and 45 in rock. Exchange rate utilized was US$/C$ of $0.75. Mining costs utilized different values for overburden (clay, gravel), selective mining and bulk mining ranging from C$1.75 to C$3.15/t mined. Processing costs and G&A for 100ktpd operation were C$6.18/t. Based on the range of grade and ratio of sulphur to nickel at Crawford, recovery could be expected to range from 10% – 60%. It has also been assumed that 30 {㈂ –} 40% of total iron would be recovered to a saleable magnetite concentrate.
7. The Mineral Resource Estimate was prepared following the CIM Estimation of Mineral Resources & Mineral Reserves Best Practice Guidelines (November 29, 2019).
MAIN ZONE:
8. The geological model as applied to the Mineral Resource Estimate for the Main Zone comprises three mineralized domains hosted by variably serpentinized ultramafic rocks: a relatively high-grade core (largely dunite) and two northern and southern lower grade envelopes (combination of dunite and peridotite). Individual wireframes were created for each domain.
9. The block model was prepared using Micromine 2020. A 12 m x 12 m x 9 m block model was created and samples were composited at 4.5 m intervals. Grade estimation from drill hole data was carried out for Ni, Co, Fe, S, Pd and Pt using the Ordinary Kriging interpolation method.
10.Grade estimation was validated by comparison of input and output statistics (nearest neighbour and inverse distance cubed), swath plot analysis, and by visual inspection of the assay data, block model, and grade shells in cross-sections.
11.Density estimation was carried out for the mineralized domains using the Ordinary Kriging interpolation method, on the basis of 3,270 specific gravity measurements collected during the core logging process, using the same block model parameters of the grade estimation. As a reference, the average estimated density value within the high-grade is 2.64 g/cm3 (t/m3), while low-grade domains of the resource model yielded averages of 2.63 g/cm3 (t/m3) in the north and 2.71 g/cm3 (t/m3) in the south.
EAST ZONE:
12.The geological model as applied to the Mineral Resource Estimate for the East Zone comprises three mineralized domains hosted by variably serpentinized ultramafic rocks: a relatively high-grade core (largely dunite) and two northern and southern lower grade envelopes (largely peridotite). Individual wireframes were created for each domain.
13.The block model was prepared using Micromine 2020. A 20 m x 20 m x 15 m block model was created and samples were composited at 3 m intervals. Grade estimation from drill hole data was carried out for Ni, Co, Fe and S using the Inverse Distance Squared method.
14.Grade estimation was validated by comparison of input and output statistics (nearest neighbour), swath plot analysis, and by visual inspection of the assay data, block model, and grade shells in cross-sections.
15.An average bulk density value for each mineralized domain was calculated on the basis of 244 specific gravity measurements collected during the core logging process. Blocks within the high-grade were assigned a single bulk density value of 2.62 g/cm3 (t/m3), while low-grade domains of the resource model were assigned single bulk density values of 2.66 g/cm3 (t/m3) in the north and 2.72 g/cm3 (t/m3) in the south.
Assays, Quality Assurance/Quality Control and Drilling and Assay Procedures
William E. MacRae, MSc, P.Geo., a Qualified Person as defined by NI 43-101, is responsible for the on-going drilling and sampling program, including quality assurance (QA) and quality control (QC). The core is collected from the drill in sealed core trays and transported to the core logging facility. The core is marked and sampled at 1.5 metre lengths and cut with a diamond blade saw. Samples are bagged with QA/QC samples inserted in batches of 35 samples per lot. Samples are transported in secure bags directly from the Canada Nickel core shack to Actlabs Timmins, an ISO/IEC 17025 accredited lab. Analysis for precious metals (gold, platinum and palladium) are completed by Fire Assay while analysis for nickel, cobalt, sulphur and 17 other elements are performed using a peroxide fusion and ICP-OES analysis. Certified standards and blanks are inserted at a rate of one QA/QC sample per 32 core samples making a batch of 35 samples that are submitted for analysis.
Brixton Metals drills 439 m of 0.34% CuEq at Thorn
Brixton Metals Corp. has provided the last batch of 2020 drilling results at its wholly owned Thorn project, located in the Golden Triangle of northwestern British Columbia.
Hole THN20-181 intercepted porphyry style mineralization returning 439.42m of 0.34% CuEq including, 278.42m of 0.43% CuEq, including 105.42m of 0.60% CuEq
Hole THN20-181 bottomed in higher grade mineralization with the last 6.22m returning 2.27% CuEq
An IP chargeability anomaly of 3km by 2km was outlined around Camp Creek to 600-700m depth
Chairman and CEO of Brixton Metals, Gary R. Thompson stated, “We believe that hole 181 is confirmation of a new porphyry discovery at the Camp Creek Target. It’s evident from both this hole and the completed IP that most of the previous drilling was not deep enough to effectively test this porphyry target. With our 2021 exploration program at Thorn, we plan on drilling additional deep holes with the goal of locating the center of a potentially very large Cu-Au-Ag-Mo porphyry.”
2020 DRILL RESULTS FROM CAMP CREEK
Hole From (m) To (m) Interval (m) Cu (ppm) Au (g/t) Ag (g/t )Mo (ppm) CuEq (%)
THN20-180 349.00 576.79 227.79 712.85 0.05 0.96 50.40 0.15
Including 555.00 576.79 21.79 1,059.75 0.07 1.06 89.73 0.22
THN20-181 518.00 957.42 439.42 1,889.60 0.07 2.41 139.83 0.34
Including 679.00 957.42 278.42 2,347.42 0.09 2.57 195.83 0.43
Including 852.00 957.42 105.42 3,201.80 0.11 3.75 335.41 0.60
Including 951.20 957.42 6.22 7745.34 0.21 7.62 2,934.77 2.27
THN20-182 387.00 861.00 474.00 1,060.84 0.05 0.93 72.67 0.19
Including 530.98 642.00 111.02 1,382.82 0.07 1.31 105.00 0.26
Including 570.00 590.00 20.00 2,535.95 0.12 2.09 113.47 0.44
Copper Equivalent (CuEq_ppm) = [(($Cu/g * Cu ppm) + ($Au/g * Au ppm) + ($Ag/g * Ag ppm) + ($Mo/g * Mo ppm))] / $Cu/g
Using the following metal prices (average daily prices during last 12 months) of Cu US$2.70/lb, Au $1759/oz, Ag $19.60/oz, Mo $11.20/lb.
The three deep Camp Creek holes drilled in 2020 display fairly consistent downhole patterns of mineralization and alteration (please refer to strip log THN20-181 in Figure 3). In the upper sections of the holes (to depths of approximately 300-400 metres), mineralized intervals are thin, reflecting polymetallic veins that are typically rich in pyrite, commonly with galena and sphalerite and the copper-bearing sulphosalt minerals tetrahedrite/tennantite. Only minor quartz veins are present, and chalcopyrite and molybdenite are largely absent. Sericitic alteration dominates the upper parts of the holes, with potassic (biotitic and K-feldspathic) assemblages gradually increasing downhole. Below about 300-400 metres depths, the holes are more consistently mineralized with copper, gold, silver, and molybdenum. The dominant copper mineral is chalcopyrite, not tetrahedrite/tennantite. Quartz veins are ubiquitous; potassic and locally silicic alteration predominate at depth. The overall patterns observed in the Camp Creek holes are consistent with those in a number of porphyry deposits worldwide that are exposed at a level above a “blind” copper-(gold-molybdenum) ore zones. The well mineralized 6.22m interval of 2.27 CuEq at the bottom of hole THN20-181 is dominated by pyrite and chalcopyrite hosted in a hydrothermal breccia, please see Figure 7 below at 953.11m depth.
The Mineral Deposits Research Unit (MDRU) Porphyry Index or MPIx is a porphyry geochemical vector index developed by the MDRU at the University of British Columbia. It ratios elements proximal to known porphyry deposits versus more distal elements. The equation is MPIx = [Cu/10 +Mo+(10*W)=(20*Sn)] / [(5*Sb)+(20*Tl)+Ag+AS+Li] (after Bouzari et al., 2019).
A total of six IP geophysical survey lines were completed between 2020 and 2019. The survey lines were approximately 3km long and 300m apart and cut across Camp Creek. A high chargeability anomaly was identified to about 600-700m depth (maximum range of survey only) across most of the survey area of 25-38 mV and remains open in several directions, see video link above and IP and drilling section in Figure 5 below.
Orvana produces 18,398 oz AuEq in Q4
Orvana Minerals Corp. has provided operational results for the first quarter of fiscal 2021.
Juan Gavidia, CEO of Orvana Minerals stated: “The Company has started fiscal 2021 with a strong first quarter, both at the operational and exploration levels. Orvana remains on target to deliver on our production guidance, plus, more strategically, advancing exploration and developmental initiatives at our three business units in Spain, Argentina and Bolivia.”
Gold-equivalent production of 18,398 ounces; a 10% increase from Q4 Fiscal Year 2020.
Continuing brownfield and greenfield exploration at Orovalle, Spain.
Fieldwork exploration in progress at Taguas, Argentina.
Quality Assurance Testing Planning for the Oxides Stockpile Project (OSP) at EMIPA, Bolivia.
OroValle
Quarterly 14,127 ounces of gold production, 5% higher than previous quarter due to higher throughput, partially off-set by lower ore grade.
Copper production was 2.0 million pounds, 15% higher than previous quarter.
Lidia Project Exploration Program commenced on schedule.
Permitting for Ortosa Godan is in progress. Drilling expected to start in March 2021.
Taguas
Fieldwork exploration campaign completed in December 2020, including new access points, geological mapping and soil and rock sampling.
Preparations are underway for a drilling campaign to start in February 2021.
A new Mineral Resource Estimate is being updated in compliance with Canadian National Instrument 43-101, by Geosim Services Inc, an independent consulting firm, by February 2021.
EMIPA
As a result of latest metallurgical testing showing positive results for the Oxides Stockpile Project (OSP), a pilot program is being developed, with final conclusions expected in late fiscal 2021.
New reprocessing and interpretation of historical geological data was completed in December 2020. Areas of interest will be subject to non-drilling exploration fieldwork during the next three quarters of fiscal 2021. The goal is to develop drilling targets for fiscal 2022 within the most prospective areas of the Don Mario Complex.
Production Results
Q1 2021 Q4 2020 Q1 2020
El ValleDon Mario Total El ValleDon Mario Total El ValleDon Mario Total
Ore milled (tones) 180,380 - 180,380 166,047 - 166,047 155,662 64,875220,537
Gold Equivalent (oz) 18,398 - 18,398 16,742 - 16,742 15,654 2,132 17,786
Gold
Grade (g/t) 2.60 - 2.60 2.70 - 2.70 2.98 1.07 2.42
Recovery (%) 93.6 - 93.6 93.3 - 93.3 92.20 84.4 92.2
Production (oz) 14,127 - 14,127 13,422 - 13,422 13,722 2,093 15,815
Copper
Grade (%) 0.63 - 0.63 0.58 - 0.58 0.36 - 0.36
Recovery (%) 81.6 - 81.6 83.4 - 83.4 71.5 - 71.5
Production (K lbs) 2,044 - 2,044 1,780 - 1,780 892 - 892
ABOUT ORVANA – Orvana is a multi-mine gold-copper-silver company. Orvana’s assets consist of the producing El Valle and Carles gold-copper-silver mines in northern Spain, and the Don Mario gold-silver property in Bolivia, currently in care and maintenance. Orvana is in the process of closing the acquisition of Taguas, Argentina. Additional information is available at Orvana’s website (www.orvana.com).
Victory Metals closes $18.04M private placement
On Jan. 15, 2021, further to Victory Metals Inc.’s news releases in December, 2020, the company closed, subject to final approval of the TSX Venture Exchange, the second and final tranche of its non-brokered private placement financing of subscription receipts of Victory. In connection with the second and final tranche of the Private Placement, Victory issued 5,237,200 Subscription Receipts at a price of $0.55 per Subscription Receipt (the (“Subscription Price”) for gross proceeds of $2,880,460. Together with the first tranche of the Private Placement, Victory issued an aggregate of 32,806,902 Subscription Receipts for aggregate gross proceeds of $18,043,796.10.
Victory originally announced on December 7, 2020, that it intended to complete the Private Placement for a minimum of $8 million.
Victory announced on December 22, 2020, an increase in the size of the Private Placement to approximately $17.5 million to accommodate significant excess demand.
The first tranche of $15,163,336 in gross proceeds closed on December 23, 2020.
The second tranche has now closed with Crescat Capital LLC, a Denver-based hedge fund, providing the lead order.
Financing Summary:
The completion of the Private Placement by Victory represents the satisfaction of one closing condition to the previously announced a merger of equals transaction (the “Merger”) between Victory and Nevada King Mining Ltd. (” Nevada King “) under which Victory will acquire all the issued and outstanding shares of Nevada King for common shares of Victory (the “Victory Shares”).
The proceeds of the Private Placement will be used to advance Victory’s development and exploration stage assets and for other general corporate purposes.
The Subscription Receipts were issued pursuant to a subscription receipt agreement entered into between Victory and Alliance Trust Company, the subscription receipt agent, dated December 23, 2020. Each Subscription Receipt entitles the holder to receive one post-Merger Victory Share immediately after closing of the Merger, subject to other standard conditions, without further action on the part of the holder and without payment of additional consideration. The Subscription Receipts issued pursuant to the second and final tranche of the Private Placement, and the underlying Victory Shares issuable upon conversion thereof, are subject to a hold period under applicable Canadian securities law expiring on May 16, 2021.
In connection with the Private Placement as a whole, cash finder’s fees in an aggregate amount of $662,487.53 were paid to certain finders on a portion of the Private Placement, subject to compliance with TSX-V policies and applicable securities legislation, are applicable.
The completion of the Merger, and the automatic conversion of the Subscription Receipts thereafter, remains subject to customary closing conditions including approval of the TSX-V, shareholders, and the court. The proceeds of the Private Placement will be held in escrow pending the completion of the Merger. Victory expects to complete the Merger in the first quarter of 2021. If the Merger is not completed before April 16, 2021, the Subscription Receipts will be deemed to be cancelled and the holders of Subscription Receipts will receive a cash amount equal to the aggregate Subscription Price of their Subscription Receipts and any interest that was earned on the Subscription Price.
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 State in which such offer, solicitation or sale would be unlawful.
Blue Lagoon samples up to 90.6 g/t Au at Dome
Blue Lagoon Resources Inc. has released the results from its fall prospecting program and has added a second drill rig to its 20,000-metre drill program currently under way on its Dome Mountain gold project — an all-year-round-accessible property located a short 50-minute drive from Smithers, B.C.
"With nearly $6 million in treasury and no debt, our exploration team is laser focused on rapidly moving the 2021 drill program forward and increase shareholder value on this highly prospective large land package of nearly 19,000 hectares, 90% of which has yet to be explored," said Rana Vig, President and CEO of Blue Lagoon Resources. "We’re also very encouraged with the fantastic numbers returned from the rock sample program that will serve to prioritize our 2021 drill targets at Freegold, Forks, and the 9800 zone," he added.
HIGHLIGHTS OF NEW ROCK SAMPLE DATASample 74653(Freegold Vein)Returned 5.07 g/t Au and 31.3 g/t Ag
Sample 74501(Freegold Vein)Returned 56.2 g/t Au and 136 g/t Ag
Sample 74502(9800 Zone) Returned 26.5 g/t Au and 322 g/t Ag
Sample 74503(Forks Vein) Returned 47 g/t Au and 287 g/t Ag
Sample 74505(Freegold Vein)Returned 53.2 g/t Au and 59 g/t Ag
Sample 74506(Freegold Vein)Returned 14.1 g/t Au and 61.5 g/t Ag
Sample 74507(Freegold Vein)Returned 90.6 g/t Au and 129 g/t Ag
PHASE ONE DRILLING
The first drill rig is located on the Noranda 1 pad which drilled hole DM-20-139 during the recently completed 2020 drill program and hit 17.69 g/t Au and 70.40 g/t Ag (including 0.65 meters running 48.4 g/t Au and 95 g/t Ag) over 3.13 meters at a downhole depth of 338 meters. This hole was a vertical hole. The current drilling from this pad will drill at -60, -70- and -80-degrees inclination to follow the high-grade gold mineralization in the Boulder Vein up to the recently defined gold resource lower limit. Close spaced drilling will allow for this mineralization to be included in a resource category when the next 43-101 resource is completed. Once this drilling from the Noranda 1 pad is completed, this rig will move south and target deeper mineralization in the Boulder Vein.
The Company's newly added second drill rig is placed on Pad 26 and will follow-up on the high-grade results drilled in hole DM-20-114 during the 2020 drill program. DM-20-114 hit 107 g/t Au and 278.5 g/t Ag over 1.42 meters (including 165.3 g/t Au and 398 g/t Ag over 0.71 meters) at a depth of 69.13 meters from a hole with an inclination of -73 degrees. Hole DM-21-141 will be drilled at a steeper inclination to target continued down dip high grade gold mineralization from the 69.13-meter intercept in hole DM-20-114.
ROCK SAMPLE RESULTS
Rock samples gathered during the soil sampling program completed in the fall of 2020 returned anomalous values in gold and silver. Bedrock exposure on the Dome Mountain project is very limited and overburden is almost completely covering the project area and ranges from 0 to over 30 meters thick as defined by drilling.
Of particular interest was sample 74653 that was collected east of the known vein at Freegold from newly discovered outcrop containing visible quartz veins. Outcrop exposure here is limited but one sample ran 5.07 g/t Au and 31.3 g/t Ag. Another sample (74658) contained 0.014 g/t Au and 85.5 g/t Ag. The Company will focus on this area in its 2021 exploration program to further prospect for more outcrop and define a potential drill target.
Sample 74501 was collected from an outcropping quartz vein on the Freegold showing.
Sample 74502 is a highly anomalous bedrock sample collected from the 9800 Zone in an area of historic trenching. This sample comes from a flat lying quartz vein with semi massive sulfide and runs 56.2 g/t Au and 136 g/t Ag.
Sample 74503 came from an old mine dump at Forks and ran 47 g/t Au and 287 g/t Ag. The quartz vein sample is part of the old underground workings at Forks and the historic Noranda resource of 20,000 tonnes at 23.6 g/t Au. (BCGS Geological Fieldwork 1986, Paper 1987-1, Page 212, Babine Project; BC Minefile# 093L 280).
Samples 74505, 74506 and 74507 all came from outcropping quartz veins at Freegold. These samples ran (in order) 53.2, 14.1 and 90.6 g/t Au and 59, 61.5 and 129 g/t Ag. These veins are part of the high-grade Freegold showing and will be a high priority drill target in 2021.
QUALITY ASSURANCE AND CONTROL
All rock samples were sent to ALS in Vancouver and lab methods include fire assay gold and ME-MS61. QA/QC includes inserted lab standards, blanks and field duplicates. All samples were kept in secure storage. Chain of custody protocol was maintained by onsite QP. Delivery to ALS in Vancouver was via secure shipping.
The scientific and technical data contained in this news release was approved by William Cronk, P.Geo., a qualified person as defined in NI 43-101 and a consultant to the Company.
Aftermath Silver pays finder’s fee to Elysium
Aftermath Silver Ltd. has paid finder’s fees to Elysium Mining Ltd., in connection with the previously announced initial closing of the acquisition of the Berenguela silver-copper project, pursuant to an acquisition agreement with SSR Mining Inc. The company issued 346,279 common shares in the capital of the company to Elysium and made prior cash payments to Elysium in the aggregate amount of $109,477 (U.S.). The finder’s fee shares are subject to a statutory hold period of four months plus one day, in accordance with applicable securities laws, expiring on May 15, 2021.