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White Gold Corp. Drills 103.9 g/t Gold & 400.0 g/t Silver over 1.52m from Surface within a Broader Intercept of 31.4 g/t Gold over 6.1m and Identifies New High-Grade Gold Zones at Vertigo Target on JP Ross Property

White Gold Corp. (TSX.V: WGO, OTC – Nasdaq Intl: WHGOF, FRA: 29W) (the “Company) is pleased to announce additional Rotary-Air-Blast (“RAB”) and Reverse Circulation (“RC”) drill results from the Vertigo target on the JP Ross property, Yukon, Canada. Assays for 3 additional RAB holes and 11 additional RC holes have been received, returning additional high-grade mineralization in multiple zones. The RC drilling further validated the previously announced RAB drill results and identified new zones of high-grade gold mineralization along strike and at depth, which remain open in all directions. Drilling and other geological testing has also been conducted along the 14km structural trend that hosts the Vertigo and other similar targets.

Maps to accompany this news release can be found at http://whitegoldcorp.ca/investors/exploration-highlights/.

Highlights Include:

  • JPRVERRC18-006 returned 3.21 g/t Au over 82.3m, including 31.4 g/t Au over 6.1m, including 103.9 g/t Au and 400.0 g/t Ag over 1.52m from surface and three deeper mineralized zones including 4.92 g/t Au over 6.1m from 36.58m.
  • JPRVERRC18-009 returned 14.23 g/t Au over 6.1m, including 38.56 g/t Au over 3.05m from surface and 6.1 g/t Au over 4.57m from 41.5m. This is the most eastern drill intercept of the gold zones on the Vertigo target and mineralization remains open along strike and at depth.
  • JPRVERRC18-003 returned 30.7 g/t Au over 1.52m from surface and 3.98 g/t Au over 7.62m, including 7.14 g/t Au over 3.05m from 65.53m.
  • A total of 17 RAB holes and 21 RC holes have been drilled on the Vertigo target, increasing strike length of high-grade mineralization to over 305m x 250m. Additional assay results are pending for RC holes within and beyond this strike length, within the newly expanded target area.
  • The target area of mineralization and alteration has been expanded to a footprint of 1,500m x 650m, hosting at least 12 individual zones and remains open in all directions.
  • Additional prospecting and geological evaluation have been conducted along the 14km trend which hosts the Vertigo discovery with the goal of identifying similar gold zones nearby. Assays are pending and will be released in due course.

“We are continuing to encounter high-grade gold mineralization at or near surface on the Vertigo target and have now encountered multiple additional high-grade zones at depth and along strike,” stated Jodie Gibson, VP Exploration. “These new results have provided further understanding of the geological model and show the potential for a large high-grade mineralized system.”

Drill Results
A total of 917.45m of RAB drilling over 17 holes was completed on the Vertigo target. Several of the RAB holes failed to reach full depth due to difficult ground conditions adjacent to or within the mineralized zones. The RAB was converted to an RC system to maximize recoveries and 1,491 m of RC has been drilled over 21 holes. Some of the RC holes are within close proximity to previously reported RAB holes to test for mineralization at depth beyond the limits of the RAB drilling, up to 100m depth, and to evaluate the geometry of the mineralized structures. The remainder step out along strike and on additional structures along the Vertigo target.

Results for 3 additional RAB holes and 11 RC holes from the Vertigo target have been received and are discussed below. Individual assays for the reported holes range from trace to 103.9 g/t Au and trace to 400.0 g/t Ag; with significant zones of alteration and anomalous mineralization noted in all holes except one. The most significant results were obtained from holes JPRVERRC18-001, JPRVERRC18-003, JPRVERRC18-06, JPRVERRC18-07 & JPRVERRC18-09.

JP Ross - Vertigo Target

Significant drill results from the Vertigo target included in this release are detailed in the table below.

Hole IDFrom(m)To(m)Interval(m)Au(g/t)
JPRVERRAB18-0160.003.053.050.88
And10.6712.191.521.08
And32.0047.2415.240.93
Including33.5336.583.052.12
Including42.6747.244.571.10
JPRVERRAB18-0174.576.101.530.87
And27.4336.589.151.03
Including27.4330.483.052.16
JPRVERRC18-00139.6254.8615.241.01
Including41.1542.671.522.56
Including47.2448.771.531.74
Including53.3454.861.522.03
JPRVERRC18-00262.4865.533.050.72
JPRVERRC18-00319.8121.341.5230.70
And65.5373.157.623.98
Including65.5368.583.057.14
JPRVERRC18-0060.0082.3082.33.21
Including0.006.106.1031.40
Including0.001.521.52103.90
And 13.7222.869.142.02
And36.5842.676.104.92
And70.1073.153.052.92
JPRVERRC18-00710.6712.191.526.88
And30.4832.001.529.40
JPRVERRC18-008*24.3827.433.054.00
And45.7247.241.521.25
And60.9662.481.522.20
JPRVERRC18-0090.006.106.1014.23
Including0.003.053.0538.56
And15.2418.293.052.11
And41.1545.724.576.10
Including41.1542.671.5214.80
*Hole ended in mineralization.

Interpretation of the results is ongoing and there is not currently enough information to estimate true thickness of the mineralized zones.

JP Ross Property

JPRVERRC18-001 – Az: 000, Dip: -60°, Depth: 76.2m
JPRVERRC18-001 is located 109m to the SE of RAB hole JPRVERRAB-014. The hole returned a 15.24m intercept of 1.01 g/t Au from 39.62m depth. Anomalous (>100 ppb Au) zones of mineralization occur above and below the reported intercept. Additionally, this is the western most hole received to date and expands the drilled footprint of mineralization to 305m strike length.

JPRVERRC18-003 – Az: 000, Dip: -60°, Depth: 96.01m
JPRVERRC18-003 was drilled to the north from the same location as RAB hole’s JPRVERRAB18-001 & 002. The hole returned two significant intercepts including 1.52m of 30.7 g/t Au from 19.81m depth, and 7.62m of 3.98 g/t Au from 65.53m depth; including 3.05m of 7.14 g/t Au from 65.53m depth.

JPRVERRC18-006 – Az: 180, Dip: -60°, Depth: 86.87m
JPRVERRC18-006 was collared 5m to the south of JPRVERRAB18-014/RC-013 and intersected 4 zones of mineralization with additional mineralization distributed between the zones. This includes a 6.10m zone from surface averaging 31.4 g/t Au, including 1.52m of 103.9 g/t Au from surface; a 9.14m zone averaging 2.02 g/t Au from 13.72m depth; a 6.10m zone averaging 4.92 g/t Au from 36.58m depth, including 1.52m of 14.4 g/t Au from 39.62m depth; and a 3.05m zone averaging 2.92 g/t Au from 70.10m depth. Combined, the zones average 3.21 g/t Au over 82.30m from surface. Excluding the upper 1.52m of 103.9 g/t Au; the combined intercept averages 80.77m of 1.3 g/t Au from 1.52m depth.

JPRVERRC18-007 – Az: 180, Dip: -60°, Depth: 88.39m
JPRVERRC18-07 is located 23m to the north and drilled subparallel to JPRVERRAB18-014. The hole returned two significant intercepts including 1.52m of 6.88 g/t Au from 10.67m depth, and 1.52m of 9.40 g/t Au from 30.48m depth.

JPRVERRC18-009 – Az: 180, Dip: -60°, Depth: 91.44
JPRVERRC18-009 was drilled 8m to the NE of previously reported hole JPRVERRAB18-011 and was drilled to evaluate the area at depth. The hole returned 3 zones of mineralization with additional mineralization distributed between the zones. Results include a 6.10m zone of 14.23 g/t Au from surface, including 3.05m of 38.56 g/t Au from surface; a 3.05m zone of 2.11 g/t Au from 15.24m depth; and a 4.57m zone of 6.10 g/t Au from 41.15m depth, including 1.52m of 14.80 g/t Au from 41.15m depth. Combined, the zones average 2.70 g/t Au over 45.72m from surface.

Vertigo Target – JP Ross Property
The Vertigo Target is on the JP Ross property which is comprised of 2,850 quartz claims covering over 57,000 hectares with at least 14 known target areas and numerous placer gold bearing creeks. Previously announced drill results on the Vertigo target range from trace to 56.25 g/t Au over 3.05m within a broader intercept of 17.34 g/t Au over 10.67m from 3.05m depth (JPRVERRAB18-001); 45.00 g/t Au over 3.05m from 1.52m depth, within a broader intercept of 9.65 g/t Au over 15.24m (JPRVERRAB18-011); and 23.44 g/t Au over 24.37m (JPRVERRAB18-014). Additional exploration in the area also encountered multiple high-grade grab samples including 139.9 g/t, 135.6 g/t and 132.9g/t Au defining a strike length of approximately 1.5km on the Vertigo target along a 12km mineralized trend. The Vertigo Target is located approximately 25km north of the Company’s flagship White Gold property and is within 2km of an existing road accessible from Dawson City. Recently staked and acquired claims adjacent to the property are situated within a prolific placer mining camp where coarse placer gold is common.

To date, at least 12 mineralized structures are recognized on the Vertigo target over a 1500m x 650m area, and consist of W-NW trending, steeply dipping zones of quartz veining, brecciation, and fracture-controlled mineralization with disseminated to vein-controlled pyrite-arsenopyrite-galena and, locally, visible gold mineralization. Drill testing to date has validated the mineralization over 305m of strike length and it is open along strike and at depth.

About White Gold Corp.
The Company owns a portfolio of 21,218 quartz claims across 34 properties covering over 423,000 hectares representing over 40% of the Yukon’s White Gold District. The Company’s flagship White Gold property has a mineral resource of 960,970 ounces Indicated at 2.43 g/t gold and 282,490 ounces Inferred at 1.70 g/t gold as set forth in the technical report entitled “Independent Technical Report for the White Gold Project, Dawson Range, Yukon, Canada”, dated March 5, 2018, filed under the Company’s profile on SEDAR. Mineralization on the Golden Saddle and Arc is also known to extend beyond the limits of the current resource estimate. Regional exploration work has also produced several other prospective targets on the Company’s claim packages which border sizable gold discoveries including the Coffee project owned by Goldcorp Inc. (TSX: G, NYSE:GG) with a M&I gold resource(1) of 4.1M oz and Western Copper and Gold Corporation’s Casino project which has P&P gold reserves(1) of 8.9M oz Au and 4.5B lb Cu. For more information visit www.whitegoldcorp.ca.

(1) Noted mineralization is as disclosed by the owner of each property respectively and is not necessarily indicative of the mineralization hosted on the Company’s property.

QA/QC
The analytical work for the 2018 program has been performed by Bureau Veritas Commodities Canada Ltd., an internationally recognized analytical services provider, at its Vancouver, British Columbia laboratory. Sample preparation was carried out at its Whitehorse, Yukon facility. All GT Probe, RAB, RC, and diamond core samples were prepared using procedure PRP70-250 (crush, split and pulverize 250 g to 200 mesh) and analyzed by method FA430 (30g fire assay with AAS finish) and AQ200 (0.5g, aqua regia digestion and ICP-MS analysis). Samples containing >10g/t Au were reanalyzed using method FA530 (30g Fire Assay with gravimetric finish). Metallic-screen analysis may also be utilized if coarse gold mineralization is encountered (FS600).

The work was completed using industry standard procedures, including a quality assurance/quality control (QA/QC) program consisting of the regular insertion of certified standards and blanks into the sample stream. The qualified person detected no significant QA/QC issues during review of the data.

Qualified Person
Jodie Gibson, P.Geo. and Vice President of Exploration for the Company is a “qualified person” as defined under National Instrument 43-101 (“NI 43-101”) and has reviewed and approved the content of this news release.

Cautionary Note Regarding Forward Looking Information
This news release contains “forward-looking information” and “forward-looking statements” (collectively, “forward-looking statements”) within the meaning of the applicable Canadian securities legislation. All statements, other than statements of historical fact, are forward-looking statements and are based on expectations, estimates and projections as at the date of this news release. Any statement that involves discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as “expects”, or “does not expect”, “is expected”, “anticipates” or “does not anticipate”, “plans”, “proposed”, “budget”, “scheduled”, “forecasts”, “estimates”, “believes” or “intends” or variations of such words and phrases or stating that certain actions, events or results “may” or “could”, “would”, “might” or “will” be taken to occur or be achieved) are not statements of historical fact and may be forward-looking statements. In this news release, forward-looking statements relate, among other things, to: the anticipated benefits to the Company and its shareholders respecting the Company’s objectives, goals and exploration activities conducted and proposed to be conducted at the White Gold and other properties; future growth potential of the Company, including whether any further mineral resources will be established in accordance with NI 43-101 at any of the Company’s properties; exploration results; and future exploration plans.

These forward-looking statements are based on reasonable assumptions and estimates of management of the Company at the time such statements were made. Actual future results may differ materially as forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to materially differ from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors, among other things, include: the expected benefits to the Company relating to the exploration conducted and proposed to be conducted at the White Gold and other properties; failure to expand or identify any additional mineral resources; the preliminary nature of metallurgical test results; uncertainties relating to the availability and costs of financing needed in the future, including to fund any exploration programs on the White Gold properties and the Company’s other properties; business integration risks; fluctuations in general macroeconomic conditions; fluctuations in securities markets; fluctuations in spot and forward prices of gold, silver, base metals or certain other commodities; fluctuations in currency markets (such as the Canadian dollar to United States dollar exchange rate); change in national and local government, legislation, taxation, controls, regulations and political or economic developments; risks and hazards associated with the business of mineral exploration, development and mining (including environmental hazards, industrial accidents, unusual or unexpected formations pressures, cave-ins and flooding); inability to obtain adequate insurance to cover risks and hazards; the presence of laws and regulations that may impose restrictions on mineral exploration and mining; employee relations; relationships with and claims by local communities and indigenous populations; availability of increasing costs associated with mining inputs and labour; the speculative nature of mineral exploration and development (including the risks of obtaining necessary licenses, permits and approvals from government authorities); the unlikelihood that properties that are explored are ultimately developed into producing mines; geological factors; actual results of current and future exploration; changes in project parameters as plans continue to be evaluated; soil sampling results being preliminary in nature and are not conclusive evidence of the likelihood of a mineral deposit; title to properties; and those factors described under the heading “Risks and Uncertainties” in the Company’s most recently filed management’s discussion and analysis. Although the forward-looking statements contained in this news release are based upon what management of the Company believes, or believed at the time, to be reasonable assumptions, the Company cannot assure shareholders that actual results will be consistent with such forward-looking statements, as there may be other factors that cause results not to be as anticipated, estimated or intended. Accordingly, readers should not place undue reliance on forward-looking statements and information. There can be no assurance that forward-looking information, or the material factors or assumptions used to develop such forward-looking information, will prove to be accurate. The Company does not undertake any obligations to release publicly any revisions for updating any voluntary forward-looking statements, except as required by applicable securities law.

Neither the TSX Venture Exchange (the “Exchange”) nor its Regulation Services Provider (as that term is defined in the policies of the Exchange) accepts responsibility for the adequacy or accuracy of this news release.

Contact Information:
David D’Onofrio
Chief Executive Officer
White Gold Corp.
(416) 643-3880
ddonofrio@whitegoldcorp.ca

Photos accompanying this announcement are available at:

http://www.globenewswire.com/NewsRoom/AttachmentNg/133932b1-2ccf-40a1-87b9-64d70e278e0b

http://www.globenewswire.com/NewsRoom/AttachmentNg/ba545391-b2e3-4e70-8445-3233550f0ce1

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Cartier Continues to Widen Zones 5 below Chimo Mine with 14.6 g/t Au over 3.0 m within 5.8 g/t Au over 10.0 m

Cartier Resources Inc. (TSX-V: ECR) (“Cartier”) reports additional drill hole intersections grading 14.6 g/t Au over 3.0 m including 36.8 g/t Au over 1.0 m, 450 m below the Chimo Mine (FIGURE). These higher-grade sections are included within a section grading 5.8 g/t Au over 10.0 m included within an interval of 44.0 m grading 2.2 g/t Au. The Chimo Mine project is situated 45 Km east of Val-d’Or within the prolific Val-d’Or Mining Camp. Results continue to confirm the robustness of the gold system below the former mine.

These new results further increase the volume of gold mineralization of interest beneath the Chimo Mine to the east, significantly increasing the potential for resource development.” commented Philippe Cloutier, President and CEO.

The details of the new results received from the laboratory are as follows:

Drill HoleFrom
(m)
To
(m)
Length (m)Au
(g/t)
Cluster of Zones 5
CH17-46C1 377.01 380.03.014.65M2, 5M, 5B and 5BS
Including1 356.01 357.01.020.8
Including1 370.01 371.01.013.4
Including1 377.01 378.01.07.0
Including1 379.01 380.01.036.8
Included within1 370.01 380.010.05.8
Included within1 343.01 387.044.02.2
CH17-46BE11 246.01 247.91.95.7
Including1 246.01 247.01.07.2
Included within1 238.01 253.015.01.6
Lengths are expressed along drill core axis. The true thickness was not determined.

The deep drilling program along the depth extension of the Zone 5 cluster, which produced 75% of the ounces extracted from the Chimo Mine, was completed after 11 months of drilling. The program consisted of 20 holes totaling 10,000 m from 2 pilot holes starting at the surface. All of the holes intersected gold mineralization similar to Zones 5 of the Chimo Mine. Mineralization consists of non-refractory arsenopyrite, smoky and / or whitish quartz veins, biotite, and visible gold grains.

The Phase II drilling program is currently underway (August 28th 2018 press release) and aims to focus on the resource development potential of 7 peripheral gold zones to the main cluster of Zones 5.

The reader should view the YouTube VIDEO, available on Cartier’s website. The 3D video helps visualize the different gold-bearing structures on the Chimo Mine property as well as key components that are the mine infrastructures, the gold-bearing zones, the gold intersection areas left unmined as well as the main targets of the ongoing drill program. The gold structure and zone 6N1 is illustrated.

Chimo Mine Project Highlights

  • The Chimo Mine produced 379,012 ounces of gold (MERN DV 85-05 to DV-97-01).
  • Cartier owns 100% interests of the property.
  • Year-round access by road, proximal to custom mills.
  • Gold ore was mined intermittently from 14 zones by 3 different producers from 1964 to 1997 with a weighted average grade of 4.8 g/t Au.
  • Mine infrastructure consists of a network of drifts distributed on 19 levels, 80 m to 870 m deep, connected by a 3-compartment shaft 965 m deep. The headframe and surface facilities were dismantled in 2008 but the electrical line and the sand pit are still present.
  • A 105-hole drill program totaling 45,000 m has been underway since July 2017.
  • Press releases on drill results from the Chimo Mine project since beginning of program:
• October 25, 2018 – Cartier Widens Zones 5 Below Chimo Mine With…
• October 9, 2018 – New Zone 6N1 Increases Potential at Chimo Mine
• September 19, 2018 – Cartier Confirms Mineralization Continuity to a Depth of 1.6 km…
• August 28, 2018 – Cartier Ramps Up Expanded Chimo Mine Drill Program
• June 28, 2018 – Cartier Cuts 86.1 g/t Au over 1.5 m at Chimo Mine
• May 29, 2018 – Cartier Cuts 4.8 g/t Gold over 4.0 m, 525 m Below Chimo Mine
• May 16, 2018 – Cartier Cuts 6.0 g/t Gold over 3.0 m and Expands Zone 6P2 …
• March 27, 2018 – Cartier Cuts 8.5 g/t Gold over 3.5 m, 205 m Below Chimo Mine
• March 20, 2018 – Cartier Cuts 7.6 g/t Gold over 5 m, 235 m Below Chimo Mine
• March 6, 2018 – Cartier Cuts 6.5 g/t Au over 4.0 m, 165m below Zone 3 at Chimo Mine
• February 14, 2018 – Cartier Cuts 4.7 g/t Au over 5.1 m Including 17.7 g/t Au over 0.5 m…
• January 18, 2018 – Cartier Cuts 7.5 g/t Au Over 2.0 m and Extends 2B Zone …
• November 17, 2017 – Cartier Intersects 9.4 g/t Au Over 6.5 Meters at Chimo Mine
• November 7, 2017 – Cartier Intersects 7.6 g/t Au Over 3.3 Meters on Chimo …
• October 24, 2017 – Cartier Intersects 7.3 g/t Au Over 2.2 Meters on Chimo, Extends 5M4..
• January 18, 2017 – Cartier Intersects 8.2 g/t Au over 7.0 m on the Chimo Mine Property

About Cartier
Cartier Resources was founded in 2006 and is based out of Val-d’Or, Quebec. Quebec has consistently ranked high as one of the best mining jurisdictions in the world primarily based on its mineral rich geology, attractive tax environment, and pro-mining government. In 2017, the Fraser Institute again ranked Quebec as one of the best jurisdictions in the world for investment attractiveness.

Cartier Investment Highlights

  • The Corporation has a strong cash position with over $8M in the bank and important corporate and institutional investors including Agnico Eagle Mines, JP Morgan UK and the Quebec investment funds.
  • Cartier’s strategy is to focus on gold projects that are relatively advanced with significant potential for resource expansion laterally and at depth.
  • The Corporation holds a portfolio of advanced stage exploration projects in the Abitibi Greenstone Belt in Quebec – one of the most prolific mining regions in the world – the commodity focus is gold.
  • The Corporation is focused on advancing its four key projects through drill programs. All of these projects were acquired at very reasonable valuations over the past few years. All of them are drill-ready with targets identified similar to the deposits that have been outlined on each project.
  • The Chimo Mine project is a historic gold producer. Three other projects, namely Wilson, Benoist and Fenton, hold historic resource estimates.
  • In 2018, an ongoing program of 105 holes totaling 45,000 m aims to enhance the resource development potential at Chimo Mine.

Quality Assurance / Quality Control
All lengths, mentioned in this press release, were measured along the drill core. The NQ core samples are crushed up to 80% passing 8 mesh sieves and then pulverized up to 90% passing a 200-mesh sieve. Cartier inserts 5% of the number of samples in the form of certified standards and another 5% in the form of sterile samples to ensure quality control. The samples are analyzed at the Techni-Lab laboratory (Actlabs), located in Ste-Germaine-Boulé, Quebec. The 50 g pulps are analyzed by fire assay and atomic absorption. For samples containing visible gold, 1,000 g of rock are directly analyzed by the “Metallic Sieve” method.

The scientific and/or technical information presented in this press release has been reviewed and approved by Mr. Gaétan Lavallière, P. Geo., Ph. D. and Vice President for Cartier Resources. Mr. Lavallière is a qualified person as defined by National Instrument 43-101.

For more information, please contact:
Philippe Cloutier, P.Geo.
President and CEO
Telephone: 819 856-0512
philippe.cloutier@ressourcescartier.com
www.ressourcescartier.com
Investor Relations:
Relations Publiques Paradox
514 341-0408

Neither the TSX Venture Exchange nor its regulatory services provider accepts responsibility for the adequacy or accuracy of this press release.

A photo accompanying this announcement is available at http://www.globenewswire.com/NewsRoom/AttachmentNg/e51c9cf5-9df2-4386-bd82-31cb19d99bca

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White Gold Corp. Completes Offerings to Raise Aggregate Gross Proceeds of C$15 Million; Agnico Eagle Mines and Kinross Gold Corp. Each Maintain 19.6% Interest

White Gold Corp. (TSX.V: WGO, OTC – Nasdaq Intl: WHGOF, FRA: 29W) (the “Company”) is pleased to announce the completion of its previously announced offering (the “Public Offering”) of common shares (“Common Shares”) issued on a flow-through basis (the “FT Shares”) and concurrent brokered private placement (the “Concurrent Private Placement”, and together with the Public Offering, the “Offering”) of Common Shares with a syndicate of underwriters (the “Underwriters”) led by Clarus Securities Inc. and including GMP Securities L.P., Canaccord Genuity Corp. and Sprott Private Wealth L.P. The Public Offering consisted of the sale of 5,000,000 FT Shares issued at a price of C$2.00 per FT Share for aggregate gross proceeds of C$10,000,000, and the Concurrent Private Placement consisted of the sale of 3,333,332 Common Shares at a price of C$1.50 per Common Share for aggregate gross proceeds of C$5,000,000.

The gross proceeds from the sale of the FT Shares will be used by the Company to incur exploration expenditures on its properties in the White Gold District of the Yukon Territory (the “Qualifying Expenditures”) prior to December 31, 2019.  The Qualifying Expenditures will be renounced to subscribers of FT Shares for the fiscal year ended December 31, 2018. The net proceeds from the sale of the Common Shares will be used for general corporate expenses.

Pursuant to existing investor rights agreements between the Company and Agnico Eagle Mines Limited (“Agnico”) (TSX: AEM, NYSE: AEM) and the Company and Kinross Gold Corp (“Kinross”) (TSX: K, NYSE: KGC), each of Agnico and Kinross exercised its right to participate in the Offering by purchasing 1,666,666 Common Shares pursuant to the Concurrent Private Placement. As a result, each of Agnico and Kinross holds an approximate 19.6% interest in the Company after giving effect to the Offering. In addition, certain directors and officers of the Company (and together with Agnico and Kinross, the “Insiders”) purchased an aggregate of 37,500 FT Shares pursuant to the Public Offering.

David D’Onofrio, the Chief Executive Officer of the Company, stated, “We are very pleased to close this financing maintaining our strong financial position as we further explore our recent discoveries in the White Gold district and look to increase the size of our flagship Golden Saddle deposit. We would also like to thank all the parties who have been instrumental in this financing as well as Agnico and Kinross for their continued support.”

The Underwriters received a cash commission equal to 6.5% of the gross proceeds from the sale of FT Shares under the Public Offering, and a cash commission equal to 2.0% of the gross proceeds from the sale of Common Shares under the Concurrent Private Placement. The Underwriters also received broker warrants equal to 6% of the number of FT Shares sold under the Public Offering (each a “Broker Warrant”). Each Broker Warrant entitles the Underwriters to purchase one Common Share at a price of C$2.00 for a period of 24 months following the closing date of the Offering.

Participation by the Insiders in the Offering was considered a “related party transaction” pursuant to Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (“MI 61-101”). The Company was exempt from the requirements to obtain a formal valuation or minority shareholder approval in connection with the Insiders’ participation in the Offering in reliance of sections 5.5(a) and 5.7(1)(a) of MI 61-101. A material change report was filed in connection with the participation of Insiders in the Offering less than 21 days in advance of the closing of the Offering, which the Company deemed reasonable in the circumstances so as to be able to avail itself of potential financing opportunities and complete the Offering in an expeditious manner.

The Common Shares issued pursuant to the Concurrent Private Placement are subject to a statutory four month and one day hold period.

About White Gold Corp.

The Company owns a portfolio of 21,218 quartz claims across 34 properties covering over 423,000 hectares representing over 40% of the Yukon’s White Gold District. The Company’s flagship White Gold property has a mineral resource of 960,970 ounces Indicated at 2.43 g/t gold and 282,490 ounces Inferred at 1.70 g/t gold as set forth in the technical report entitled “Independent Technical Report for the White Gold Project, Dawson Range, Yukon, Canada”, dated March 5, 2018, filed under the Company’s profile on SEDAR. Mineralization on the Golden Saddle and Arc is also known to extend beyond the limits of the current resource estimate. Regional exploration work has also produced several other prospective targets on the Company’s claim packages which border sizable gold discoveries including the Coffee project owned by Goldcorp Inc. with a M&I gold resource(1) of 4.1M oz. and Western Copper and Gold Corporation’s Casino project which has P&P gold reserves(1) of 8.9M oz. Au and 4.5B lb. Cu. The Company has outlined an aggressive exploration plan backed by partners Agnico and Kinross. For more information visit www.whitegoldcorp.ca.

(1)Noted mineralization is as disclosed by the owner of each property respectively and is not necessarily indicative of the mineralization hosted on the Company’s property.

Cautionary Note Regarding Forward Looking Information

This news release contains “forward-looking information” and “forward-looking statements” (collectively, “forward-looking statements”) within the meaning of the applicable Canadian securities legislation. All statements, other than statements of historical fact, are forward-looking statements and are based on expectations, estimates and projections as at the date of this news release. Any statement that involves discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as “expects”, or “does not expect”, “is expected”, “anticipates” or “does not anticipate”, “plans”, “proposed”, “budget”, “scheduled”, “forecasts”, “estimates”, “believes” or “intends” or variations of such words and phrases or stating that certain actions, events or results “may” or “could”, “would”, “might” or “will” be taken to occur or be achieved) are not statements of historical fact and may be forward-looking statements. In this news release, forward-looking statements relate, among other things, to: the anticipated benefits to the Company and its shareholders respecting the Company’s objectives, goals and exploration activities conducted and proposed to be conducted at the White Gold properties; the proposed use of proceeds from the Offering; future growth potential of the Company, including whether any proposed exploration programs at any of the Company’s properties will be successful; exploration results; and future exploration plans and costs and financing availability.

These forward-looking statements are based on reasonable assumptions and estimates of management of the Company at the time such statements were made. Actual future results may differ materially as forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to materially differ from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors, among other things, include: the expected benefits to the Company relating to the exploration conducted and proposed to be conducted at the White Gold properties; the ability of the Company to incur the Qualifying Expenditures  prior to December 31, 2019. the receipt of all applicable regulatory approvals for the Offering; failure to identify any additional mineral resources or significant mineralization; the preliminary nature of metallurgical test results; uncertainties relating to the availability and costs of financing needed in the future, including to fund any exploration programs on the White Gold properties and the Company’s other properties; business integration risks; fluctuations in general macroeconomic conditions; fluctuations in securities markets; fluctuations in spot and forward prices of gold, silver, base metals or certain other commodities; fluctuations in currency markets (such as the Canadian dollar to United States dollar exchange rate); change in national and local government, legislation, taxation, controls, regulations and political or economic developments; risks and hazards associated with the business of mineral exploration, development and mining (including environmental hazards, industrial accidents, unusual or unexpected formations pressures, cave-ins and flooding); inability to obtain adequate insurance to cover risks and hazards; the presence of laws and regulations that may impose restrictions on mining and mineral exploration; employee relations; relationships with and claims by local communities and indigenous populations; availability of increasing costs associated with mining inputs and labour; the speculative nature of mineral exploration and development (including the risks of obtaining necessary licenses, permits and approvals from government authorities); the unlikelihood that properties that are explored are ultimately developed into producing mines; geological factors; actual results of current and future exploration; changes in project parameters as plans continue to be evaluated; soil sampling results being preliminary in nature and are not conclusive evidence of the likelihood of a mineral deposit; title to properties; and those factors described under the heading “Risks and Uncertainties” in the Company’s most recently filed management’s discussion and analysis. Although the forward-looking statements contained in this news release are based upon what management of the Company believes, or believed at the time, to be reasonable assumptions, the Company cannot assure shareholders that actual results will be consistent with such forward-looking statements, as there may be other factors that cause results not to be as anticipated, estimated or intended. Accordingly, readers should not place undue reliance on forward-looking statements and information. There can be no assurance that forward-looking information, or the material factors or assumptions used to develop such forward-looking information, will prove to be accurate. The Company does not undertake any obligations to release publicly any revisions for updating any voluntary forward-looking statements, except as required by applicable securities law.

Neither the TSX Venture Exchange (the “Exchange”) nor its Regulation Services Provider (as that term is defined in the policies of the Exchange) accepts responsibility for the adequacy or accuracy of this news release.

Contact Information:
David D’Onofrio
Chief Executive Officer
White Gold Corp.
(416) 643-3880
ddonofrio@whitegoldcorp.ca

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Precipitate Gold: Gold in the Dominican Republic

If you go to Google maps and look at the Dominican Republic you can see Barrick Gold’s huge Pueblo Viejo gold mine. It is the largest gold mine in the Americas and the fourth largest in the world. The mine has reserves and resources of over 15 million gold ounces.

Surrounding Pueblo Viejo, on three sides, is junior explorer Precipitate Gold’s (V.PRG) Pueblo Grande property. Looking at the map it was very clear there was a story here and Jeff Wilson, Precipitate’s CEO was more than happy to tell it.

“We’ve been in the Dominican Republic since 2012,” said Wilson. “GoldQuest drilled a world-class hole in the Tireo Gold Trend in central Hispaniola, the island upon which the Dominican Republic is located,” said Wilson. “While GoldQuest’s share price was rocketing from $0.06 per share to nearly $2.00 per share almost overnight, we were nimble enough to pick up ground immediately adjacent to them, stretching nearly 40 kilometres along the boundary of their project.”

While Precipitate did extensive mapping, IP surveying, soil and geochemical sampling and trenching and completed a 43-101 Technical Report in March 2016, there were regionally specific issues for GoldQuest’s next phase of permitting. “The byproduct of making a new discovery in an underexplored region with no mining history or understanding of mining meant limited local understanding of the potential benefits of mining, and that slowed the permitting process” Wilson explained. “Until the permitting issues are resolved for GoldQuest we did not want to put more money into the project next door. So, it’s on hold.”

At the same time, Precipitate had accumulated a lot of experience in the Dominican Republic,  which meant that it made sense to look for another exploration project. “One of our directors, Alistair Waddell, has over twenty years experience in the Dominican Republic,” said Wilson. “He was the Founder and CEO of GoldQuest. We wanted to identify the right project in the Dominican Republic.”

As this decision was being reached, junior explorer Everton Resources was coming to the end of its ability to explore the land concessions it had obtained surrounding Barrick’s Pueblo Viejo gold mine. “Everton had pretty much thrown their hands up,” said Wilson. “They were low on funds and looking to make a change.”

We made a deal with Everton,” said Wilson. “Light on cash ($25,000) and a few hundred thousand worth in shares which are “locked up” and only sellable in stages with the last 40% of the shares restricted from trading for 3 years”.

As part of that deal, Precipitate Gold got a lot of data on the property – soil samples, a drill hole database including 158 diamond drill holes and 62 shallow RAB drill holes; totalling about 29,500 metres, a Heliborne magnetic-GeoTEM geophysical survey and extensive mapping. “Our first step is to take the time to clean up this information,” said Wilson. “The next step will be to bring in a really high-level consulting geologist, familiar with the specific area’s geology, to prepare a technical report and some guidance on the best ways forward.”

All of which begs the question, “Why didn’t Barrick buy the concessions?”

“That’s a very good question,” said Wilson. “First off, Barrick already has 13-15 million ounces at Pueblo Viejo. The mine had previously been run by the state. The state ran it poorly and created an environmental disaster. After the state shut it down and put it out to tender Barrick won the bid on 20 million ounces. But the government wanted ongoing exploration and development in the area to find more deposits, therefore Barrick’s bid was restricted to the existing Pueblo Mine site and nothing more.” Interestingly, however, in an April 24, 2018, Financial Post article Barrick executives were quoted as saying the company is shifting to a growth strategy, focusing on Nevada and the Dominican Republic. Surely this bodes well for juniors who successfully identify new deposits in-country. Which seems to invite junior companies like Precipitate to go find more mineable resources. The problem being that the concessions surround Pueblo Viejo are not geologically straightforward.

“This is not a “real estate play,” said Wilson. “It is not “closeology”.”

Which means that some real geological talent has to be brought to bear to figure out where the best targets are located. The historical data, while it is useful for understanding the geology may be even more useful in defining where the targets aren’t. The fact is, Everton pursued certain geological hypothesis with varying degrees of success but never really found the “big prize”.

“Often, in this business,” said Wilson “it’s not the first or second guy in who makes the big discovery. It’s typically the third or fourth who benefits from the predecessors’ work and capital investment and takes the combined information to look at the targets differently in finding something that had been missed or overlooked in the past. I think we have a chance to benefit from prior work and data to pursue something new and untested in the shadow f one of the world’s richest gold deposits.”

Precipitate has one great advantage: its Board is packed with world-class geologists. Its Chairman, Adrian Flemming, founded Underworld Resources in the Yukon which was later sold to Kinross. Quinton Hennigh, founder of Novo Resources in Western Australia directed Novo to a $1 billion market cap last year, also serves. Alastair Waddell spent 6 years as a senior member of the Kinross team and brings extensive local knowledge of the Dominican Republic. A fourth geologist, Michael Moore serves as VP Exploration. If there is a gold target to be found on the property, these are the people who can find and evaluate it.

The company is closing in on a target which has never been explored. “We’re looking at areas which may have been missed,” said Wilson. “We are focused on a highly prospective area just west of the Pueblo Viejo mining pits that is highly altered and the host of a significant magnetic high anomaly which has not been systematically drill tested at all.”

In certain settlings and situations, explorationists look for magnetic lows as target areas for mineralization, however, Precipitate has a geological thesis that the magnetic highs may be indicative of a common cap rock associated with high sulphidation mineralized gold systems (the same type of deposit found at Pueblo Viejo next door).

“We’ll have boots on the ground soon to map and sample,” said Wilson. “We want to delineate and prioritize targets and start drilling before the end of Q1 2019. It could be an inexpensive initial drill program as we’re looking at 200-metre holes on average, but we’ll need to complete our review of the data before we can say for sure.”

The logic of the geological thesis is set out on page 14 of Precipitate’s corporate presentation.

V.PRG, Precipitate Gold, Dominican Republic, gold

If the magnetic high on Precipitate’s land is caused by the same sort of structure which underlies the magnetic high at the Pueblo Viejo mine, then a few, relatively shallow drill holes will confirm or refute the geos’ hypothesis. Basically, the company needs to drill through the “cap” and see if nature has repeated herself.

From an investor’s perspective, Precipitate offers the prospect of near-term, significant, drill results. The Pueblo Grande property has excellent infrastructure, nearby power, a highway and a mining friendly jurisdiction. Sooner rather than later the drill is going to determine if the Precipitate geos’ hypothesis is right. Precipitate is trading at $0.075 at time of writing. Right now, it is under the radar. That might change, a lot, when the drill results come back from Pueblo Grande.

Website: https://precipitategold.com/

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Triumph Gold Reports Results from Drilling of the Nucleus Au-Ag-Cu Deposit, Freegold Mountain Property, Yukon Territory

Triumph Gold Corp., (TSX-V: TIG) (OTCMKTS: TIGCF) (“Triumph Gold” or the “Company”) is pleased to announce the results from 4,159 metres of diamond drilling, in twenty-one holes, conducted in the Nucleus gold, silver, copper (Au-Ag-Cu) deposit area. Highlights of the 2018 Nucleus drill program include:

  • Four high-grade gold intersections:
    — 19.8 grams per tonne (g/t) gold (Au) over 0.84 metres*** (m) in N18-06 (39.62 – 40.46m)
    — 15.93 g/t Au over 1.00 metre*** in N18-17 (150.00 – 151.00m)
    — 13.67 g/t Au over 1.67 metres*** in N18-04 (28.51 – 30.18m)
    — 9.13 g/t Au over 2.00 metres*** in N18-16 (106.00 – 108.00m)
  • Mineralized intervals from sixteen of the twenty-one holes drilled in 2018 returned gold grades that exceed the average grade (0.544 g/t Au) of the current inferred mineral resources estimated in December 2014*. Examples include:
    — 1.196 g/t Au over 45.19 metres*** in N18-08 (19.81 – 65.00m)
    — 1.184 g/t Au over 59.50 metres*** in N18-17 (149.00 – 208.50m)

Highlighted intersections are noted below in Table 1, a full list of significant intersections is contained in Table 2, and the location and orientation of the drill holes are listed in Table 3 and displayed on Figure 1.

Table 1 – Highlighted results from 2018 Diamond Drilling at the Nucleus Au-Ag-Cu Deposit
Drill HoleFromToLength***AuAgCu
 metremetremetreg/tg/t%
N18-0138.1051.8213.720.9660.90.040
N18-0423.0935.0511.963.0301.90.307
Including28.5130.181.6713.67010.00.542
N18-0638.1051.3013.201.9800.40.146
Including39.6240.460.8419.8000.00.164
N18-082.04150.11148.070.6190.10.046
Including19.8165.0045.191.1960.10.052
N18-16106.00108.002.009.1300.00.120
N18-17149.00208.5059.501.1841.60.081
Including150.00151.001.0015.9305.00.551
Also Inc.166.00176.0010.003.2127.00.227
N18-18155.45166.7311.281.0754.10.314
N18-1985.0095.5010.501.6440.00.187

The 2018 drill program at Nucleus was designed to optimize a future pit-constrained estimate of mineral resources by targeting:

  1. Near-surface mineralized areas that had insufficient drill density to support estimates of mineral resources.
  2. Near-surface mineralized areas where additional delineation drilling could facilitate upgrading of Inferred mineral resources to an Indicated category.
  3. Areas prospective for high-grade mineralization.

Triumph Gold Corp. has contracted SIM Geological Inc. to provide updated estimates of mineral resources for the Nucleus, Revenue and Tinta deposits, to be completed in 2019. All three deposits are located on Triumph Gold’s 100% owned, road accessible, two hundred square kilometre Freegold Mountain property, Yukon Territory. The updated resource estimate at Nucleus will incorporate all drill results prior to 2014, the results from sixteen holes completed in 2017 (press release PR18-01, dated January 18, 2018), as well as 4,159 metres of diamond drilling, in twenty one holes, conducted in 2018 (as described in this news release).

Table 2 Significant Results from 2018 Diamond Drilling at the Nucleus Au-Ag-Cu deposit
Drill HoleFromToLength***AuAgCu
 metremetremetreg/tg/t%
N18-0122.8669.0046.140.4550.60.076
Including38.1051.8213.720.9660.90.040
And206.00216.0010.000.2130.40.111
N18-0287.2089.001.801.2303.00.019
And107.00111.004.000.6030.00.056
N18-0325.0075.0050.000.5150.00.025
And193.00195.002.001.0200.00.007
N18-0423.0935.0511.963.0301.90.307
Including28.5130.181.6713.67010.00.542
And62.0072.0010.000.4810.00.061
N18-053.3016.5013.200.6500.00.022
And180.00181.201.206.8800.00.017
N18-0638.1051.3013.201.9800.40.146
Including39.6240.460.8419.8000.00.164
And94.0096.012.012.0300.00.113
N18-072.7021.3318.630.4220.00.024
And158.00177.0919.090.2560.50.134
N18-082.04150.11148.070.6190.10.046
Including19.8165.0045.191.1960.10.052
N18-0919.0077.7258.720.3890.10.059
N18-1036.4938.001.511.2800.00.020
And111.00113.002.001.4000.00.031
And137.00146.309.300.3801.30.099
N18-11No Significant Results
N18-1241.0051.0010.000.5160.00.044
And80.1581.151.002.2103.00.015
N18-1316.4018.361.961.5500.00.043
And38.6745.727.050.5741.10.007
And125.00129.824.821.1240.00.077
N18-1457.0072.6015.600.3720.30.087
And85.0097.0012.000.3480.00.017
N18-1581.7683.001.241.1100.00.004
And155.00158.003.000.4270.00.047
And194.50201.476.970.4151.10.055
N18-1613.7217.944.221.0370.00.019
And98.72189.0090.280.5350.30.085
Including106.00108.002.009.1300.00.120
N18-1767.5072.004.500.4520.00.018
And82.0086.004.002.2950.00.055
And115.00119.004.000.7900.00.023
And149.00208.5059.501.1841.60.081
Including150.00151.001.0015.9305.00.551
Also Inc.166.00176.0010.003.2127.00.227
N18-1836.5838.101.523.0200.00.018
And47.5553.055.500.9900.00.016
And60.6763.452.780.7020.00.023
And78.0081.863.860.8570.00.042
And155.45166.7311.281.0754.10.314
N18-1985.0095.5010.501.6440.00.187
N18-2052.2172.0019.790.4080.00.029
And93.00106.9513.950.0910.20.162
And134.48152.0417.560.4380.00.038
And193.33206.1212.790.7521.30.124
N18-2137.0038.101.101.5900.00.046
And94.0098.004.000.5880.00.017
And164.45184.0019.550.4880.00.011
And192.03196.003.970.5530.00.010
Table 3 Location and Orientation of Nucleus Drill Holes, 2018
Hole IDEasting**Northing**AzimuthInclinationDepth
N18-013794586913881000-60225.55
N18-023794586913967000-60127.71
N18-033795316913586000-60260.60
N18-043795486913260000-60201.78
N18-053793586913559000-60199.64
N18-063795036913272000-60268.22
N18-073793546913688000-60206.96
N18-083793706913930000-50200.86
N18-093794136913298000-50200.86
N18-103791716913911000-60157.96
N18-113790946913776000-60104.55
N18-123793656913314000-50201.47
N18-133790286913779000-60203.96
N18-143793566913400000-50152.42
N18-153789996913646000-60201.47
N18-163792796913531000-55220.98
N18-173791546913695000-70210.62
N18-183792066913565000-50201.17
N18-193792746913629000-65201.47
N18-203791476913585000-60208.48
N18-213790896913601000-60201.78

Notes:

* Campbell, J., Sexton, A., Armitage, A., Studd, D., (effective date December 15, 2014, publication date February 28, 2015): Technical Report on The Freegold Mountain Project, Yukon Canada, Resource Estimates. 43-101Techincal Report. www.sedar.com 

** Coordinates are given in North American Datum 83 (NAD83), Zone 8.

*** Length/interval refer to drill hole intercept. True widths have not been determined.

Methods and Qualified Person

Drill core samples ranged between 1 and 2 metres length and were cut at Triumph’s core logging facility on the Freegold Mountain Property. The samples were analyzed by SGS Canada of Vancouver, British Columbia. They were prepared for analysis according to SGS method PRP89: each sample was crushed to 75% passing 2mm and a 250g split was pulverized to better than 85% passing 75 micron mesh. Gold was tested by fire assay with atomic absorption finish on a 30g nominal sample (method GE FAA313), and samples that tested over 10 g/t Au were retested using a 30g nominal sample and gravimetric analysis (method GO FAG303). An additional 35 elements were tested by ICP-AES using a four-acid digestion (method GE ICP40B), over limit samples for copper were retested using the same technique but with assay grade four acid digestion and a higher range of detection (method GA AAS42S). Quality assurance and control (QAQC) is maintained at the lab through rigorous use of internal standards, blanks and duplicates. An additional QAQC program was administered by Triumph Gold: at minimum three quality control samples, consisting of blanks, certified reference standards and duplicates, were blindly inserted into each 75 sample batch. QAQC samples that return unacceptable values trigger investigations into the results and reanalyses of the samples that were tested in the batch with the failed QAQC sample.

The technical content of this news release has been reviewed and approved by Tony Barresi, Ph.D., P.Geo., VP Exploration for the company, and qualified person as defined by National Instrument 43-101.

About Triumph Gold Corp.

Triumph Gold Corp. is a growth oriented Canadian-based precious metals exploration and development company. Triumph Gold Corp. is focused on creating value through the advancement of the district scale Freegold Mountain project in Yukon. For maps and more information, please visit our website www.triumphgoldcorp.com

On behalf of the Board of Directors

Signed “Paul Reynolds”
Paul Reynolds, President & CEO

For further information please contact:
John Anderson, Executive Chairman
Triumph Gold Corp.
(604) 218-7400
janderson@triumphgoldcorp.com

Nancy Massicotte
IR Pro Communications Inc.
(604)-507-3377
nancy@irprocommunications.com

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

This news release contains forward-looking information, which involves known and unknown risks, uncertainties and other factors that may cause actual events to differ materially from current expectation. Important factors – including the availability of funds, the results of financing efforts, the completion of due diligence and the results of exploration activities – that could cause actual results to differ materially from the Company’s expectations are disclosed in the Company’s documents filed from time to time on SEDAR (see www.sedar.com). Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The company disclaims any intention or obligation, except to the extent required by law, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

A photo accompanying this announcement is available at http://www.globenewswire.com/NewsRoom/AttachmentNg/268a441a-d1cd-44c5-90a8-1bccbed24163

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Goldplay continues to intercept new silver-lead-zinc-gold mineralization from sampling of historical core at San Marcial; including 23 meters @ 160 gpt AgEq

Goldplay Exploration Ltd. (TSXV: GPLY, OTCQB: GLYXF) (“Goldplay” or the “Company”) is pleased to announce positive results from sampling of the historical core drill holes completed in 2010 (“historical core”), from the Company’s San Marcial Project in Mexico. The results support open pit potential for the initial 500-meter-long historical NI 43-101 resource area (“historic resource”). Results reveal a much wider mineralized zone along strike and down-dip than originally modelled in the historic resource with opportunities for expansion.

  • 61.0 meters (true width 47.8 meters) @ 93 gpt AgEq
    • Including 23 meters (true width 17.3 meters) @ 160 gpt AgEq
  • 56.0 meters (true width 42.0 meters) @ 61 gpt AgEq
    • Including 33.0 meters (true width 24.8 meters) @ 79 gpt AgEq
  • 12.5 meters (true width 9.4 meters) @ 126 gpt AgEq

<!– assetTag:

–> <!– image and imageTag: Figure 1: Drill Hole Location Map San Marcial Project (CNW Group/Goldplay Exploration Ltd) –> <!– assetTag:

–> <!– image and imageTag: Figure 2: San Marcial Cross Section Q-R (CNW Group/Goldplay Exploration Ltd) –> <!– assetTag:

–> <!– image and imageTag: Figure 3: San Marcial Cross Section K-L (CNW Group/Goldplay Exploration Ltd) –> <!– assetTag:

–> <!– image and imageTag: Figure 4: San Marcial Cross Section M-N (CNW Group/Goldplay Exploration Ltd) –> <!– assetTag:

–> <!– image and imageTag: Figure 5: San Marcial Cross Section O-P (CNW Group/Goldplay Exploration Ltd) –> <!– assetTag:

–> <!– image and imageTag: Figure 6: San Marcial Cross Section S-T (CNW Group/Goldplay Exploration Ltd) –> <!– assetTag:

–> <!– image and imageTag: Figure 6: San Marcial Cross Section U-V (CNW Group/Goldplay Exploration Ltd) –> <!– assetTag:

–> <!– image and imageTag: Figure 7: San Marcial Longitudinal Section A-B (CNW Group/Goldplay Exploration Ltd) –>

Goldplay President and CEO Marcio Fonseca commented, “Our systematic sampling of available core (not previously sampled) has confirmed much wider and continuous mineralization than previous geological modelling part of the historic resource. The width and shallow depth of intersections associated with attractive grades, hosted in wide hydrothermal breccias and favorable topography, continue to reinforce the open pit development potential at San Marcial. The results also reinforce opportunities for future open pit development and upside exploration potential, as sampling is revealing new, wider polymetallic mineralized zones, continuous along strike and down dip, doubling the footprint of the previously modelled mineralized zone. The sampling results together with an updated geological interpretation are being incorporated in a new 3D Geological Model in preparation for a scheduled new resource estimation.”

The location of drill holes completed prior to the historical resource and the location of sampled drill holes SM-10-01, SM-10-05, SM-10-10, SM-10-13, SM-10-16, SM-10-17 and SM-10-19 are illustrated below (Figure 1).

The most significant result for this release was returned from drill hole SM-10-01 (Figure 2), which intersected 61 meters grading 93 gpt silver equivalent (AgEq), including a high-grade section of 23 meters grading 160 gpt AgEq.

Drill hole SM-10-05 (Figure 2), intersected 56 meters grading 61 gpt AgEq including 33.0 meters grading 79 gpt AgEq. The following table summarizes the most significant drill intercepts (uncut, undiluted) for this release:

Hole No.

From (m)

To (m)

Interval

(m)

True

Width

(m)

Ag g/t

Pb %

Zn %

Au g/t

AgEq*

g/t

SM-10-01

50

111

61.0

47.8

46.8

0.3

0.6

0.02

93

including

60

83

23

17.3

56

2.5

2.6

0.01

160

SM-10-05

163.1

219.1

56.0

42.0

26

0.2

0.3

0.14

61

including

163.1

196.1

33.0

24.7

32.9

0.3

0.5

0.08

79

SM-10-10

159.9

178

18.1

13.7

16.9

0.2

0.5

0.03

49

SM-10-13

161.1

164.1

3.0

2.3

50.8

0.02

0.05

0.12

64

SM-10-16

50

69

19.0

14.2

42

0.1

0.3

0.10

68

SM-10-16

103.4

116.3

12.9

9.7

15

0.9

1.3

0.10

126

SM-10-17

79.2

150

70.8

53.0

11

0.1

0.4

0.03

35

SM-10-19

27

51

24.0

18.0

60

0.2

0.3

0.03

82

Note: all numbers are rounded. AgEq (silver equivalent) is calculated from gpt data. AgEq g/t = Ag g/t + Au g/t x (Ag Price per oz/ Au price per oz) + (Pb grade x ((Pb price per lb./Ag price per oz) x 0.0685714 lbs. per Troy Ounce x 10000 g per %)) +(Zn grade x ((Zn price per lb./Ag price per oz) x 0.0685714 lbs. per Troy Ounce x 10000 g per %)). Ag price per oz (US$16.50), Au price per oz (US$1,250), Pb price per lb. (US$0.95) and Zn price per lb. (US$1.15) and 100% Metallurgical Recovery.

All the results highlighted in this release support a silver-zinc-lead-gold mineralization hosted in a wide and continuous hydrothermal breccia with evidence of a multi-phase mineralizing event along major northwest oriented faults.

The Company is continuing its drill core sampling program, aiming to complete a NI 43-101 compliant resource estimate during the December 2018 quarter. The receipt of the drilling permits (News Release dated 18 October 2018), provides the Company immediate capability to advance drilling along the 3.5 km mineralized trend, outside the historic resource, with the objective of identifying new discoveries.

In addition to the core sampling program, the Company has re-opened historical underground workings where there is evidence of bonanza style mineralization in the center of the historic resource (Figure 7). A sampling program has been implemented with results expected over coming weeks.

To view the drill hole location map, cross sections and longitudinal section from this news release, please click the following links:

Historical Drill Holes Location Map San Marcial

Cross Section K-L San Marcial

Cross Section M-N San Marcial

Cross Section O-P San Marcial

Cross Section Q-R San Marcial

Cross Section S-T San Marcial

Cross Section U-V San Marcial

Longitudinal Section San Marcial

QA/QC Protocols

Thorough QA/QC protocols are followed in all sampling programs and in assays completed by the Company. Goldplay’s management includes routine duplicates, blanks and standard samples in assay lots for all surface and drill hole samples. The samples are submitted directly to the SGS laboratory facilities in Durango, Mexico, for sample preparation and assaying. The assaying at SGS is by Fire Assay with AA finish, for Au (> 10 ppm gravimetric finish), Ag ICP-AES with 4 acid digestion (up to 100 ppm). For Ag results over 100 ppm an ICP-AES 4 acid digestion with detection limit from 100-1,000 g/t is completed at SGS laboratories in Vancouver, Canada. For samples with over limits of Zn and Pb (>10,000 ppm), an ICP-AES with Sodium Peroxide Fusion is performed, to improve recovery.

The Qualified Person under the NI 43-101 Standards of Disclosure for Mineral Projects for this news release is Marcio Fonseca, President and CEO of Goldplay, who has reviewed and approved its contents.

About Goldplay Exploration Ltd.

Goldplay owns a >250 sq. km exploration portfolio in the historical Rosario Mining District, Sinaloa, Mexico. Goldplay’s current exploration focus includes surface exploration and drilling, with a resource update to follow at the advanced-stage San Marcial Project and follow up exploration program at the El Habal Project.

The San Marcial land package consists of 1,250 ha, located south of the La Rastra and Plomosas historical mines and 20 km from the Company’s 100% owned El Habal Project in the Rosario Mining District, Sinaloa, Mexico. San Marcial is an attractive, near-surface high-grade silver, lead and zinc project for which a historical resource estimate has been previously disclosed.

San Marcial exhibits significant exploration upside supported by regional exploration programs completed by previous operators who identified 14 exploration targets similar to San Marcial within its 100% Goldplay-owned concessions. Some of these exploration targets consist of old shallow pits, caved shafts and historical underground workings in areas with extensive hydrothermal alteration, hosted by major regional structures.

The El Habal Project is a drilling stage project with an ongoing drill program. The oxidized gold mineralized zone outcrops along a series of rolling hills with evidence of historical shallow underground mining along a 6 km long prospective corridor. The El Habal Project is located near the historical gold-silver Rosario Mine which reportedly operated for over 250 years. Goldplay’s team has over 30 years of experience with senior roles in exploration, financing, and development in the mining industry, including over ten years of extensive exploration experience in the Rosario Mining District, leading to previous successful discoveries. A current NI 43-101 report on the El Habal Project is filed on SEDAR.

Disclaimer for Forward-Looking Information

This press release contains forward-looking statements and information that are based on the beliefs of management and reflect the Company’s current expectations. When used in this press release, the words “estimate”, “project”, “belief”, “anticipate”, “intend”, “expect”, “plan”, “predict”, “may” or “should” and the negative of these words or such variations thereon or comparable terminology are intended to identify forward-looking statements and information. Such statements and information reflect the current view of the Company. Risks and uncertainties may cause actual results to differ materially from those contemplated in those forward-looking statements and information. By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. THE FORWARD-LOOKING INFORMATION CONTAINED IN THIS PRESS RELEASE REPRESENTS THE EXPECTATIONS OF THE COMPANY AS OF THE DATE OF THIS PRESS RELEASE AND, ACCORDINGLY, IS SUBJECT TO CHANGE AFTER SUCH DATE. READERS SHOULD NOT PLACE UNDUE IMPORTANCE ON FORWARD-LOOKING INFORMATION AND SHOULD NOT RELY UPON THIS INFORMATION AS OF ANY OTHER DATE. WHILE GOLDPLAY MAY ELECT TO, IT DOES NOT UNDERTAKE TO UPDATE THIS INFORMATION AT ANY PARTICULAR TIME EXCEPT AS REQUIRED IN ACCORDANCE WITH APPLICABLE LAWS.

Mr. Marcio Fonseca,
P. Geo, President & CEO
Goldplay Exploration Ltd.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accept responsibility for the adequacy or accuracy of this press release.

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SOURCE Goldplay Exploration Ltd

For further information: +1 (604) 202 31 55, Email: info@goldplayexploration.com, Website: www.goldplayexploration.com, 999 West Hastings Street, Suite 900 Vancouver, British Columbia, V6C 2W2

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Marathon Gold Announces Substantial Improvements in Updated PEA with 44% Increase in Recovered Gold, at the Valentine Lake Gold Camp, Newfoundland

Marathon Gold Corporation (“Marathon” or the “Company”) (TSX: MOZ) is pleased to announce the excellent results from an updated independent Preliminary Economic Assessment study (“PEA”) on its 100% owned Valentine Lake Gold Camp that was led by John T. Boyd Company and Lycopodium Minerals Canada. The new PEA optimizes the development of the Valentine Lake Gold Camp mineral resource by open pit mining, and gold recovery by a combination of a milling circuit and heap leaching, incorporating gravity and flotation circuits with leaching of the concentrate and tails. The study is based on an initial 12-year mine life and produced an after- tax Net Present Value (“NPV”) of $493 million using a 5% discount rate. The financial model shows an after- tax Internal Rate of Return (“IRR”) of 30% and a capital payback period of 2.5 years.  All dollar figures are reported in US$ and after-tax unless stated otherwise.

Table 1 – PEA Summary

October 2018May 2018Change
Preproduction Capital$355 Million$380 Million-$25 Million
Pre-Tax NPV (5%)$834 Million$ 597 Million+$ 237 Million
Pre-Tax IRR44%34%+10%
After-Tax NPV (5%)$493 Million$367 Million+$126 Million
After- Tax IRR30%25%+5%
Pre-Tax Payback Period1.7 years2.3 years-0.6 years
After-Tax Payback Period2.5 years2.8 years-0.3 years
Mine Life 12.2 years10.2 years+2 years
Recovered Gold Ounces2,723,3001,896,300+827,000
Average Annual Production 225,100 ounces
(12-year average)
188,500 ounces
(10-year average)
+68,000 ounces
(12 year average)
LOM Average Cash Cost$603 per ounce$557 per ounce+$46 per ounce
LOM Average AISC –
All in Sustaining Costs
$666 per ounce$595 per ounce+$71 per ounce
Throughput (tonnes per day) –
Mill and Heap Leach
9,000 tpd and
9,000 tpd
7,500 tpd and
9,000 tpd
+1,500 tpd
to the mill
Mill Grade & Recovery2.2 g/t / 95%2.2 g/t / 95%
Heap Leach Grade & Recovery0.5 g/t / 59%0.5 g/t / 53%+6% recovery
Initial Production20222022
Gold Price$1,250 / oz Au$1,250 / oz Au
FX Rate (CDN$/US$)$0.769$0.787-$0.018

“This updated study has benefited from 20,000 meters of additional drilling since February 2018, 9,000 metallic screen assays on historical drill core since the last PEA resource, and an internal review of the project. For example, initial and sustaining capital costs have been cut by leasing the mining fleet instead of purchasing it. The very positive improvements in production and mine life are attributable to this year’s successful drilling program to extend the open pit resources at the Marathon Deposit, a major gold deposit that continues to grow thereby driving expansion of the project. Early near-surface higher grade resources with a low strip ratio at the Marathon Deposit enable high gold production in the early years of the operation and a fast payback of capital.  The PEA has capitalized on several opportunities identified in the May 18, 2018 PEA, and there is still room for further improvements to the mine plan and economics for the 2019 Preliminary Feasibility Study.

“The metallurgical program to improve recoveries is in progress. 2018 Marathon Deposit drill results has substantiated a modeled extension of the open pit to the southwest, 2019 drilling will focus on drilling at both the Marathon and Sprite Deposits to attempt to expand the extended mineralization, and because of the short haul to the mill and heap leach pad. The Marathon Deposit has the potential to develop an underground mine but for now it is more cost effective to find open pit resources at $10 per new ounce rather than more costly underground resources,” said Phillip Walford, President and CEO of Marathon.

Figure 1 – Valentine Lake Gold Camp Annual Gold Production
http://www.globenewswire.com/NewsRoom/AttachmentNg/b1dab561-ed2e-4b11-9f2e-932ab6f07793

Description of the Valentine Lake Project and PEA

The PEA was developed by a team of independent consultants, including Lycopodium Minerals Canada Ltd. (“Lycopodium”), John T Boyd Company (“Boyd”), Apex Geoscience Ltd. and Stantec Consulting Ltd (“Stantec”).

The Valentine Lake Project (“The Project”) is composed of four deposits: Marathon, Leprechaun, Victory and Sprite.  The mineral resource estimate was updated on October 9th, 2018 and the results are shown in Table 8.  The Sprite Deposit was excluded from mine development planning until additional exploration drilling has increased the resource.  For the Marathon, Leprechaun and Victory deposits, standard surface mining techniques will be utilized to develop three open pit mining areas.

The ultimate pit designs developed for the Valentine Lake Project are based on the results of Whittle pit optimization work. The three mining areas will be developed using a total of 17 distinct mining phases designed to approximate the optimal extraction sequence. Pit design parameters, such as wall slope angles and bench dimensions, were provided by Stantec. A mine production schedule for the entire complex was prepared by Boyd using Maptek’s Chronos scheduling software.

The Valentine Lake Project consists of two gold recovery operations:  A Milling/Flotation/Carbon in Leach plant (“Mill”) and a Heap Leach plant. The Mill will process 3.0 Mtpa of high-grade mineralized material. The plant will consist of crushing, milling, gravity recovery, flotation of gravity tails, flotation concentrate regrind, cyanidation leaching of both flotation concentrate and flotation tailings via a CIL circuit, carbon elution and gold recovery circuit. CIL tails will be treated for cyanide destruction and disposed of as tails in the tailings storage facility.

The Heap Leach pad will process 3.0 Mtpa of low-grade mineralized material from open pit operations and will consist of crushing, heap leaching and carbon-in-column gold adsorption. The loaded carbon from the Heap Leach facility will be sent to the Mill facility for gold recovery.

Table 2 – Production Schedule
http://www.globenewswire.com/NewsRoom/AttachmentNg/f75203ee-de89-4d96-93b1-5550417e4e5d

Cashflow Analysis

The results of the discounted cash flow analysis are presented in Tables 3 and 4 below. NPV, IRR and payback values for the Project are estimated on a pre-tax and after-tax basis. The base case scenario assumes a long-term gold price of US$1,250 per ounce and a discount rate of 5%. The gold price sensitivity on a pre-tax and after-tax basis demonstrates the significant potential increase in the NPV and IRR of the Project should the gold price trade in a range of US$1,300 to US$1,350 per ounce.

Table 3 – Pre-tax Cashflow and NPV Gold Price Sensitivity

 OctoberMay 
 2018 PEA2018 PEAImprovement
Life of MineYears12.210.2 
AISC – All in Sustaining Costs$/oz.$666$595 
Pre-tax Pay-back & CashflowPay-backCashflowCashflowChange
YearsUS$ MillionUS$ MillionUS$ Million
Gold Price $1,2001.9$1,116.5$774.6$341.9
Gold Price $1,2501.7$1,252.7$869.4$383.2
Gold Price $1,3001.5$1,388.8$964.3$424.6
Gold Price $1,3501.4$1,525.0$1,059.1$465.9
Pre-tax IRR & NPV @ 5%
IRRNPV @ 5%NPV @ 5%Change
US$CDN$US$ Million
Gold Price $1,20039%$731.4$522.3$209.1
Gold Price $1,25044%$833.7$596.8$236.9
Gold Price $1,30049%$936.1$671.3$264.8
Gold Price $1,35054%$1,038.4$745.8$292.6

Table 4 – After-tax Cashflow and NPV Gold Price Sensitivity

 
 October
2018 PEA
May
2018 PEA
Improvement
After-tax Pay-back & Cashflow
Pay-backCashflowCashflowChange
 
YearsUS$ MillionUS$ MillionUS$ Million
Gold Price $1,2002.8$691.3$467.6$223.7
Gold Price $1,2502.5$772.8$562.5$210.4
Gold Price $1,3002.2$854.3$616.0$238.3
Gold Price $1,3502.0$935.8$671.8$264.0
Post-tax IRR & NPV @ 5%
IRRNPV@5%NPV@5%Change
 US$ MillionUS$ MillionUS$ Million
Gold Price $1,20027%$ 431.9$ 292.2$ 139.7
Gold Price $1,25030%$ 493.2 $ 366.7 $ 126.4
Gold Price $1,30033%$ 554.4$ 408.9$ 145.5
Gold Price $1,35036%$ 615.6$ 452.7$ 162.9

After-tax cash flows reflect the impact of the Newfoundland Mining Tax, calculated based on 15% of net income from mine operations and a combined Federal and Provincial income tax rate of 30%.

Operating Cost

The PEA estimates that the Project will produce approximately 2,723,000 ounces of gold during the life of the Project, or an average of 225,100 ounces per year for years 1 to 12.

Mine operating costs were calculated from first principles using vendor-supplied estimates and Boyd’s experience with similar mining operations. Fuel costs were calculated based on vendor-provided fuel consumption and a vendor quote for diesel of US$0.94/l. Over the life of the Project, overall mining operating costs, excluding rehandle, are estimated to be US$2.10/tonne of waste plus processed mineralized material or $14.45 per tonne of processed mineralized material.  Mine operating costs increased by 27% compared to the May 2018 PEA due to increase in haul distance and an additional allowance for winter hauling conditions.

The process plant operating costs were developed by Lycopodium based on a design processing rate of 3.0 Mtpa of material for the milling circuit and 3.0 Mtpa of material for the heap leach circuit. Both circuits will normally operate 24 hours/day, and 365 days/year with 75% (6,570 hours/year) crushing plant availability and 91.3% plant utilization (nominal 8,000 hours/year operation). The process operating costs for the Project have been developed in detail according to typical industry standards applicable to gold ore processing plants.

The operating cost estimates are expressed in US$ in Q3 2018 terms and have an overall accuracy of +/-25%.

Contingency

No contingency was specified for the operating cost estimate as most costs were derived from first principles, based on metallurgical test work, reagent and consumable pricing, and industry standards.

Details of the estimated operating costs and other charges are presented in Table 5 below.

Table 5 – Operating Cost

Cost CentreTotal Operating CostProportion of
Operating
Cost
US$/yearUS$/tonne
Mineralized
Material
Plant: Milling (1)
Operating Consumables (3)$22,368,000$7.4616.6%
Plant Maintenance$1,649,000$0.551.2%
Power (4)$5,514,000$1.844.1%
Laboratory$82,000$0.030.1%
Labour (O & M)$3,444,000$1.152.6%
Subtotal Milling$33,057,000$11.0224.5%
Plant: Heap Leach (2)
Operating Consumables$3,746,000$1.252.8%
Plant Maintenance$788,000$0.260.6%
Power$592,000$0.200.4%
Laboratory$21,000$0.010.0%
Labour (O & M)$2,899,000$0.972.1%
Subtotal Heap Leach$8,046,000$2.686.0%
Common
Labour (G & A)$1,000,000$0.170.7%
G&A – Expenses$1,947,000$0.321.4%
Plant Maintenance$686,000$0.110.5%
Permanent Camp Catering$2,363,000$0.391.8%
Permanent Camp Power$98,000$0.020.1%
Subtotal Common Plant$6,094,000$1.024.5%
Subtotal Plant Operating Cost$47,197,000$7.8735.0%
 
Mining
Average of  years 1 to 12$86,683,000$14.4564.2%
Subtotal Mine Operating Section Cost$86,683,000$14.4564.2%
Water Treatment Plant
Plant Maintenance$100,000$0.020.1%
Labour (O & M)$237,000$0.040.2%
Power$4,000$0.000.0%
Others including power and Consumables$722,000$0.120.5%
Subtotal Water Treatment Plant$1,063,000$0.180.8%
Grand Total Operating Cost$134,942,000$22.49100.0%

Notes:

  1. $/t is based on mill throughput of 3.0 Mtpa.
  2. $/t is based on heap leach throughput of 3.0 Mtpa.
  3. Includes consumables for common elution, carbon regeneration & gold room areas.
  4. Includes power for elution and carbon regeneration of carbon from heap leach and mill, gold room, and mine surface loads
  5. Figures are rounded, and totals may not add correctly

Capital Cost

The capital cost estimate was based on an engineering, procurement and construction management (“EPCM”) implementation approach and typical construction contract packaging.

Equipment pricing was based on quotations and actual equipment costs from recent similar Lycopodium projects considered representative of the Project.

All costs are expressed in US$ unless otherwise stated and are based on the Q3 2018 pricing. The estimate is deemed to have an accuracy of +/- 35%. The capital cost estimate conforms to AACEI (Association for the Advancement of Cost Engineering International) Class 4 estimate standards as prescribed in recommended practice 47R11.

Contingency

Contingencies were applied to the capital cost estimate on a line-by-line basis as an allowance by assessing the level of confidence in the engineering, estimate basis and vendor or contractor information. The contingencies do not cover scope changes, design growth, or the listed qualifications and exclusions. The resultant contingency for the capital estimate is 15% before taxes and duties.

Table 6 – Capital Estimate Summary by Area

AreaTotal Inc. Project Contingency
USD
Construction Indirects$  21,257,000
Treatment Plant Costs – Heap Leach Circuit$  47,626,000
Treatment Plant Costs – Milling Circuit$  92,739,000
Reagents & Plant Services – Heap Leach Circuit$  4,030,000
Reagents & Plant Services – Milling Circuit$  21,355,000
Infrastructure$  73,192,000
Mining Equipment (Leased) and Facilities$  39,108,000
Mining Preproduction$  17,123,000
Management Costs$  22,434,000
Owners Project Costs$  16,440,000
Total Capex$  355,303,000

Sensitivities

As indicated in Figures 2 and 3 and Table 7, project cashflow and NPV are particularly sensitive to changes in the price of gold and operating costs, while relatively less sensitive to changes in recovery and capital expenditures. The table below shows the effect on the pre-tax economics of the Project increasing or decreasing the price of gold, closure costs and mill and heap leach recovery estimates by up to +/- 10%. Capital and operating costs were varied by +/-35%.

Figure 2 – NPV Sensitivity, Pre-Tax
http://www.globenewswire.com/NewsRoom/AttachmentNg/d411e0c4-d254-4b9f-bdb0-46725bbb4f92

Figure 3 – IRR Sensitivity, Pre-Tax
http://www.globenewswire.com/NewsRoom/AttachmentNg/6d0c861a-52aa-45d9-bbaf-a505e79541db

Table 7 – Sensitivities, Pre-Tax

Gold PriceNPVIRRPayback
(Years)
-10%$  577,820,00032%2.40
0%$  833,706,00044%1.68
10%$  1,089,591,00056%1.34
CAPEXNPVIRRPayback
(Years)
-35%$  996,492,00080%0.92
0%$  833,706,00044%1.68
35%$  670,920,00028%3.00
OPEXNPVIRRPayback
(Years)
-35%$  1,267,486,00064%1.24
0%$  833,706,00044%1.68
35%$  399,925,00024%3.27
Mill RecoveryNPVIRRPayback
(Years)
-2%$  788,963,00042%1.76
0%$  833,706,00044%1.68
2%$  878,449,00046%1.61
Heap Leach
Recovery
NPVIRRPayback
(Years)
-10%$  801,905,00043%1.72
0%$  833,706,00044%1.68
10%$  865,506,00045%1.65
Closure CostsNPVIRRPayback
(Years)
-10%$  835,773,00044%1.68
0%$  833,706,00044%1.68
10%$  831,639,00044%1.69

Opportunities for Project Enhancement

The PEA identified several areas where additional work will advance the Project and reduce risk. The major focus of the work planned for 2019 is summarized below:

  • The drilling program at the Marathon Deposit will involve step-out drilling to expand open pit resource along strike to the southwest and infill drilling to reduce inferred resources in the pit shell. Exploration drilling at the Sprite Deposit with continue to extend the mineralized zone northeast towards the Marathon Deposit.
  • The underground resource has not been utilized in the PEA. Infill drilling will improve the continuity of the underground mineralization. This could contribute an additional ounces to be extracted using underground mining methods.
  • Additional hydrogeological and geotechnical work will enable better open pit and underground designs.
  • Extensive metallurgical testing for the mill and the heap leach started in September 2018 at SGS-Lakefield.  Early results from crushed ore bottle role (COBR) and column tests are encouraging and confirm results of test work conducted by Thibault & Associates in 2015 and 2016. The results of the test work by SGS may improve recoveries and will be included in the pre-feasibility study scheduled for 2019.
  • Options such as high-pressure grinding rolls (“HPGR”) ahead of the heap leach and a coarser grind in the mill could also have the potential to reduce operating costs.
  • Ongoing engineering studies and permitting will continue to de-risk the Project in the future. A Pre-Feasibility is scheduled to be completed in 2019. This work will include a  detailed permitting plan which includes environmental work for an Environmental Assessment study.

Mineral Resource Estimate October 30, 2018

The project resources have increased from the previous PEA, May 18, 2019 as a result of 20,000 m of additional drilling and as a result of the addition of 9,000 metallic screen assays that are used for better measurement of coarse gold which is common on the property. Overall, all classes of resource increased significantly.

The Measured and Indicated resource tonnes increased by 35% to 45,146,000 tonnes, the grade declined by 7% to 1.854 grams per tonne and the total contained ounces Au increased by 26% to 2,691,400 ounces Au. The Inferred resource tonnes increased by 55 % to 26,856,000 tonnes, the grade decreased by 11% to 1.774 and the contained ounces Au increased by 30% to 1,531,600 ounces Au.

The slight decline in grade is not attributed to any one factor. There is a slight decrease in the bottom cut for heap leach material, there is slight reduction in the variography of the higher-grade material and we are adding slight lower grade material on the fringes of the Marathon deposit.

The increase in Inferred resource is coming from infill holes at the Marathon Deposit and step out holes to the southwest of the Marathon Deposit which are extending the resource towards the Sprite Deposit.

Additional drilling in 2019 will focus on extending the higher-grade zones in the pit shells as well as infilling open material to move Inferred resources into Indicated and Measured resources.

Table 8 – Mineral Resource Estimate

Material/
Category
Open PitUndergroundTotal
TonnesGradeGoldTonnesGradeGoldTonnesGradeGold
(t)(g/t)(oz)(t)(g/t)(oz)(t)(g/t)(oz)
Leprechaun Deposit
Measured5,760,0002.381440,80081,0003.91010,2005,841,0002.402451,000
Indicated3,010,0001.916185,50064,0003.4607,1003,074,0001.949192,600
M+I8,770,0002.221626,300145,0003.71117,3008,915,0002.246643,600
Inferred7,533,0001.476357,400388,0004.27453,3007,921,0001.613410,700
Sprite Deposit
Measured00.000000.000000.0000
Indicated708,0001.70338,8009,0002.403700717,0001.71239,500
M+I708,0001.70338,8009,0002.403700717,0001.71239,500
Inferred1,291,0001.17348,70046,0002.7024,0001,337,0001.22652,700
Marathon Deposit
Measured10,637,0001.985679,000142,0007.99036,50010,779,0002.064715,500
Indicated23,211,0001.5591,163,700513,0004.79779,10023,724,0001.6291,242,800
M+I33,848,0001.6931,842,700655,0005.489115,60034,503,0001.7651,958,300
Inferred13,784,0001.693750,1001,839,0003.862228,30015,623,0001.948978,400
Victory Deposit
Measured00.000000.000000.0000
Indicated1,009,0001.53749,9002,0001.8481001,011,0001.53850,000
M+I1,009,0001.53749,9002,0001.8481001,011,0001.53850,000
Inferred1,821,0001.26474,000155,0003.17415,8001,976,0001.41489,800
All Deposits
Measured16,397,0002.1241,119,800223,0006.50846,70016,620,0002.1831,166,500
Indicated27,938,0001.6011,437,900588,0004.60587,00028,526,0001.6631,524,900
M+I44,335,0001.7942,557,700811,0005.128133,70045,146,0001.8542,691,400
Inferred24,429,0001.5661,230,2002,428,0003.862301,40026,857,0001.7741,531,600
Notes:

1. The effective date for this mineral resource estimate for Sprite, and Victory is November 27, 2017 and is reported on a 100% ownership basis.  The effective date for the mineral resource estimate for Marathon is October 9, 2018.  The effective date for the mineral resource estimate for Leprechaun Pond is October 5, 2018.  The resources have been restated using the updated PEA economics.  All material tonnes and gold values are undiluted.

  1. Mineral Resources are calculated at a gold price of US$1,250 per troy ounce.
  1. The open pit mineral resources presented above use an economic pit shell to determine material available for open pit mining.  The underground mineral resources are that material outside of the in-pit mineral resources above the stated underground cutoff grade.
  1. 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, title, socio-political, marketing, or other relevant issues.
  1. The mineral resources presented here were estimated using a block model with a block size of 6 m by 6 m by 6 m sub-blocked to a minimum block size of 2 m by 2 m by 2 m using ID3 methods for grade estimation.  Mineral resources for the Leprechaun and Sprite deposits are reported using an open pit gold cut-off of 0.281 g/t Au and an underground gold cut-off of 1.767 g/t Au.  Material between a 0.281 Au g/t value and 1.142 Au g/t is assumed to be processed on a heap leach.  Material above a 1.142 Au g/t is assumed to be processed in a mill.  Higher gold grades were given a limited area of influence which was applied during grade estimation by mineralized domain.  Mineral resources for the Marathon and Victory deposits are reported using an open pit gold cut-off of 0.328 g/t Au and an underground gold cut-off of 1.731 g/t Au.  Material between a 0.328 Au g/t value and 0.700 Au g/t is assumed to be processed on a heap leach.  Material above a 0.700 Au g/t is assumed to be processed in a mill.  Higher gold grades were given a limited area of influence which was applied during grade estimation by mineralized domain.
  1. The mineral resources presented here were estimated using the Canadian Institute of Mining, Metallurgy and Petroleum (CIM), CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on Reserve Definitions and adopted by CIM Council May 10, 2014.
  1. Figures are rounded, and totals may not add correctly.

Report Filing

The technical report prepared in accordance with National Instrument 43-101 will be filed on SEDAR and the Company’s website within two weeks of this news release.

Qualified Persons

This news release has been reviewed and approved by the Qualified Persons noted below. The Qualified Persons have reviewed or verified all information for which they are individually responsible, including sampling, analytical, and test results underlying the information or opinions contained herein.

  • Neil Lincoln, P.Eng. – Lycopodium Minerals Canada Ltd.: processing, infrastructure, capital and operating cost estimates, economic evaluation and report compilation.
  • Robert Farmer, P.Eng. – John T Boyd Company: mineral resource estimates, mining methods, mining capital and mining operating costs.
  • Roy Eccles, P.Geo. – Apex Geoscience Ltd.:  geology, exploration, drilling, sample preparation and data verification.
  • Paul Deering, P.Eng. – Stantec Consulting Ltd. – environmental & social studies, geotechnical, tailings storage facility and heap leach pad design.

Cautionary Statement

The PEA was prepared in accordance with National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101”). Readers are cautioned that the PEA is preliminary in nature. It includes 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 PEA will be realized. Mineral resources that are not mineral reserves do not have demonstrated economic viability.

Conference Call Details

Marathon Gold is hosting a Management Information Call on Tuesday, October 30,2018 at 10:00 am Eastern time (11:30 pm Newfoundland time and 7:00 am Pacific time) with the Marathon Gold executive team to discuss the results of the PEA and the way forward.

Participants:
Toll-free dial-in number (Canada/US):1-800-952-5114
Local dial-in number:416-641-6104
International dial-in numbers:https://www.confsolutions.ca/ILT?oss=7P1R8009525114
Participant passcode:3598476#

About Marathon

Marathon is a Toronto based gold exploration company rapidly advancing its 100% owned Valentine Lake Gold Camp located in Newfoundland, one of the top mining jurisdictions in the world. The Valentine Lake Gold Camp currently hosts four near-surface, mainly pit-shell constrained, deposits with measured and indicated resources totaling 2,691,400 oz. of gold at 1.85 g/t and inferred resources totaling 1,531,600 oz. of gold at 1.77 g/t. The majority of the resources occur in the Marathon and Leprechaun deposits, which also have resources below the pit shell.  Both deposits are open to depth and on strike.  Gold mineralization has been traced down over 350 metres vertically at Leprechaun and almost a kilometer at Marathon. The four deposits outlined to date occur over a 20-kilometer system of gold bearing veins, with much of the 24,000-hectare property having had little detailed exploration activity to date.

The Valentine Lake Gold Camp is accessible by year-round road and is located in close proximity to Newfoundland’s electrical grid. Marathon maintains a 50-person all-season camp at the property. Recent metallurgical tests have demonstrated 93% to 98% recoveries via conventional milling and 50% to 70% recoveries via low cost heap leaching at both the Leprechaun and Marathon Deposits.

To find out more information on the Valentine Lake Gold Camp please visit www.marathon-gold.com.

For more information, please contact:
Christopher Haldane
Investor Relations Manager
Tel: 1-416-987-0714
E-mail: chaldane@marathon-gold.com
Phillip Walford
President and Chief Executive Officer
Tel:  1-416-987-0711
E-mail:  pwalford@marathon-gold.com

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION

Except for statements of historical fact relating to Marathon Gold Corporation, certain information contained herein constitutes “forward-looking statements”. Forward-looking statements include statements that are predictive in nature, depend upon or refer to future events or conditions, or include words such as “expects”, “anticipates”, “plans”, “believes”, “considers”, “intends”, “targets”, or negative versions thereof and other similar expressions, or future or conditional verbs such as “may”, “will”, “should”, “would” and “could”. We provide forward-looking statements for the purpose of conveying information about our current expectations and plans relating to the future and readers are cautioned that such statements may not be appropriate for other purposes.  By its nature, this information is subject to inherent risks and uncertainties that may be general or specific and which give rise to the possibility that expectations, forecasts, predictions, projections or conclusions will not prove to be accurate, that assumptions may not be correct, and that objectives, strategic goals and priorities will not be achieved. These risks and uncertainties include but are not limited to those identified and reported in Marathon Gold Corporation’s public filings, which may be accessed at www.sedar.com.  Other than as specifically required by law, we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made, or to reflect the occurrence of unanticipated events, whether as a result of new information, future events, results or otherwise.

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Aben: Moving Fast in BC’s Golden Triangle

It is a short exploration and drilling season in BC’s Golden Triangle. Jim Pettit, CEO of Aben Resources (V.ABN), knows the company has only four or five months to accomplish its program. Aben’s property is in the North Coastal Mountains where 30 or even 40 feet of snow could fall. “Winter drilling is possible,” said Pettit, “But it is a logistical nightmare and really, really expensive.”

Aben’s season at its Forrest Kerr project started off with a bang when it drilled a hole at the area it refers to as “Northern Boundary” which had four different intercepts including 6 meters of 62 gpt gold within an intercept of 10 meters grading at 38 gpt.

“It was a “discovery hole”,” said Pettit. “The markets liked it.”

V.ABN, Aben Resources, gold, BC
Visible gold in core from Aben’s Forrest Kerr project Hole FK 18-10

The August 9, 2018, release sent Aben shares on a run. They hit $.45 by August 28. Pettit has been around the business long enough to know that the time to raise money is when the market loves the company and Aben went to the market and raised $4.25 million dollars in a financing led by Eric Sprott who became a strategic shareholder. The boost the discovery hole gave Aben’s shares also meant that warrants were being exercised putting more money into the company’s coffers. And Aben raised an additional $950,000  in a flow-through financing at $0.40 with no warrant.

Along with the high grades, the early holes of the 2018 program were all quite shallow. “The discovery hole was under last year’s drilling,” said Pettit. “We did 40-meter stepouts and we hit in six out of eight holes. Plus, they were all within 120 meters of surface.”

Which did not come as a surprise to Pettit. “We’re there for a reason,” said Pettit. “We put together properties from three companies. We have to spend 3 million dollars and issue 7 million shares and we’ll own 100%. We got all their data and we put it together in one regional report. We made a priority list of targets and we are still on target #1.”

One of the attractions of Target #1 is that it is the northern extent of a historic region geochemical survey and has an outcrop Aben sampled. That outcrop sample came in at 50 gpt. The other attraction is that the Target is in close proximity with a hole drilled by Noranda in 1991. That historic hole had 10 meters of 34 gpt gold.

“We’re closing the gap to the Noranda hole,” said Pettit. “The way we are set up we can drill a hole every two shifts so it goes fast.”

So fast that there are 24 holes left to report on the Northern Boundary. In fact, Aben shifted its drills to another target called “South Boundary” as it waited for the North Boundary assays needed to help guide the program.

“We had done geo-chemical and geo-physical work and there was historical geo-physical as well,” said Pettit. “We knew that there was something there. And we wanted to wait for assays on the North Boundary holes to figure out where to drill next.”

Shifting to the South Boundary target, Aben drilled three holes. “We found a broad zone of mineralization,” said Pettit. “Bang on with my expectations. There is no visible gold in the core. But the tenor of the gold was amazing.”

“Next year we’ll have a couple of new drill pads and more drilling at the Southern Boundary,” said Pettit. “This is a big area. 6 kilometres North-South, 2 kilometres East-West. We’ll have 38 holes and 10,000 meters of drilling. Plus geo-chemical analysis from the late ‘80s early ‘90s. An airborne survey with 50 meter line spacings and extended soil samples. We know the gold came from somewhere. But where?”

“Right now the Golden Triangle has the attention of the investment community,” said Pettit. “It’s an area play with 20 drill rigs and a lot going on. Our shares respond to other people’s news.”

Because of the short season at Forrest Kerr, Aben is also able to look at advancing its other projects. The company’s Justin project is right beside Golden Predator’s 3 Aces property in South Eastern Yukon.

“This was discovered as an intrusive related gold system in 2011. We now call it The Lost Ace,” said Pettit. “We did a fourteen day program to gain a better understanding of the system. As an intrusive system, it is like the Fort Knox mine in Alaska and many others in the Tintina belt. These can have epithermal and hydrothermal elements related to them. We’ll have an update in mid-November. We might have the engine which powers 3 Aces.”

Because Justin is inland, there is a good possibility of doing work earlier in the season and working later. However, realistically, at this point, there won’t be much activity until late March.

Which brings Pettit to Aben’s third project in Northern Saskatchewan.  “This is on the southern edge of the SSR Mining Fisher holdings,” said Pettit. “We’re looking at drilling 1500 to 2000 meters on our property. Geophysics is already completed. We can drill here in January, February and March.”

The property itself is associated with a structure known as the Tabinor Fault. A structure that extends from the SSR Mine to the north and south to the Dakotas where the Homestake mine is located..

With money in the bank, a flagship property in the hottest North American gold district generating assay news and two highly prospective properties, Pettit and Aben are ready to take advantage in any upturn in the gold price or the junior resource market.

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Triumph Gold: The Geology

Tony Barresi, VP Exploration at Triumph Gold, sets the geological stage for the company’s Freegold property in the Yukon.

We’re expecting a steady news flow from Triumph and that news will make a lot more sense if you’ve watched this video.

 

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Triumph Gold Purchases Royalty Interest in Golden Revenue Claims

Triumph Gold Corp., (TSX-V: TIG) (OTCMKTS: TIGCF) (“Triumph Gold” or the “Company”) is pleased to announce the purchase of a 2% Net Smelter Return (the “NSR”) interest in the Golden Revenue property, which is wholly contained within the Company’s 100% owned, road accessible Freegold Mountain Property, YT. With this purchase, a critical 9.9 sq. km portion of the Freegold Mountain property, centered over the Blue Sky-Revenue-Nucleus area, is now unencumbered by any royalties (Figure 1).

The NSR relates to 69 claims forming the original Golden Revenue property and was purchased from the original property owner for $100,000. The claims are centered over the Revenue Au-Ag-Cu-Mo deposit and extend approximately three kilometres west, covering one half of the Nucleus Au-Ag-Cu deposit, and one kilometre east, covering the recently delineated WAu Breccia and a portion of the newly discovered high-grade, gold-rich Blue Sky porphyry; they also include the recently discovered Drone Zone (PR18-11, October 16, 2018). Highlights from drilling within the original Golden Revenue property include:

  • RVD18-17 with 125.13 metres of 1.24 g/t Au, 7.0 g/t Ag, 0.31% Cu and 0.01% Mo (310.47 – 435.60m) contained within 202.10 metres of 0.87 g/t Au, 5.8 g/t Ag, 0.26% Cu and 0.01% Mo (287.00 – 489.10m) in the Blue Sky Zone.
  • RVD18-03 with 72 metres of 0.54 g/t Au, 13.7 g/t Ag, 0.30% Cu and 0.01% Mo (60.00 – 132.00m) contained within 180 metres of 0.31 g/t Au, 5.7 g/t Ag, 0.16% Cu and 0.02% Mo (52.00 – 232.00m), in the WAu Breccia.
  • RVD17-14 with 7 metres of 15.0 g/t Au (129 – 136m), in the Guder Zone.
  • GRD08-099 with 9.36 metres of 70.19 g/t Au (109.64 – 119.00m) including 1.27 metres of 410.00 g/t Au (113.28 – 114.55m) at Nucleus.

The purchase of this royalty reduces the NSR in most of the Nucleus – Revenue – Blue Sky area to zero percent. The remainder of the Freegold Mountain property has underlying NSR’s ranging from one to three percent, all of which may be bought down to one percent at any time.

Executive Chairman’s Comment

John Anderson, Triumph Gold’s Executive Chairman, comments, “With the recent drilling success at Revenue East and the Blue Sky zone, we thought it imperative to purchase this royalty interest. This should have a significant positive impact on any future economic studies.”

The technical content of this news release has been reviewed and approved by Tony Barresi, Ph.D., P.Geo., VP Exploration for the company, and qualified person as defined by National Instrument 43-101.

About Triumph Gold Corp.

Triumph Gold Corp. is a growth oriented Canadian-based precious metals exploration and development company.  Triumph Gold Corp. is focused on creating value through the advancement of the district scale Freegold Mountain project in Yukon.  For maps and more information, please visit our website www.triumphgoldcorp.com

On behalf of the Board of Directors

Signed “Paul Reynolds”
Paul Reynolds, President & CEO

For further information please contact:
John Anderson, Executive Chairman
Triumph Gold Corp.
(604) 218-7400
janderson@triumphgoldcorp.com

Nancy Massicotte
IR Pro Communications Inc.
(604)-507-3377
nancy@irprocommunications.com

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

This news release contains forward-looking information, which involves known and unknown risks, uncertainties and other factors that may cause actual events to differ materially from current expectation. Important factors – including the availability of funds, the results of financing efforts, the completion of due diligence and the results of exploration activities – that could cause actual results to differ materially from the Company’s expectations are disclosed in the Company’s documents filed from time to time on SEDAR (see www.sedar.com).  Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release.  The company disclaims any intention or obligation, except to the extent required by law, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

A photo accompanying this announcement is available at http://www.globenewswire.com/NewsRoom/AttachmentNg/f67cb934-e46f-4656-bdeb-77edc242977f

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