VANCOUVER, Sept. 23, 2016 /CNW/ - Intact Gold Corp.
(TSX-V: ITG) (FSE: 1A5) (the "Company" or "Intact Gold"), is
pleased to announce it has entered into a Letter of Intent ("LOI")
dated September 21, 2016 with
Yellowstone Resources Ltd. ("Yellowstone") an option to acquire
100% interest in and to certain mineral properties, together with
the surface rights, mineral rights, personal property and permits
associated therewith (collectively, the "Sheep Creek
Property" or the "Property"), located in the Kootenay
Land District 12km southeast of Salmo,
BC.
About the Sheep Creek Property:
The Sheep Creek Property consists of 68 Crown Granted Claims,
and 8 mineral cell claims totaling 1400 ha combined which are owned
100% by Yellowstone Resources. Intact Gold has also acquired 100%
of 2 mineral cell claims through staking in the area adding an
additional 340 ha to the project. The total project area of 1740 ha
is centered 12 km east-southeast of Salmo and 40 km south of Nelson in
British Columbia.
Highlights of the Project are:
- A historic resource described as*:
- Proven: 40,114 tons of 0.390 ounces Au per ton
- Probable: 35,172 tons of 0.530 ounces Au per ton
- Possible: 126,294 tons of 0.284 ounces Au per ton
- Marginal: 27,561 tons of 0.154 ounces Au per ton
- The grade is not cut and is calculated at one-meter mining
width
* Details of the
historic resource are summarized from:
|
|
|
|
|
Price, B. (P. Geo.),
1988. Geological Summary Report Nugget Mine Sheep Creek Area
prepared for Gunsteel Resources Inc.
|
The reader is cautioned that a qualified person has not done
sufficient work to classify the historical estimate as current
resources and Intact Gold is not treating the historical estimate
as current mineral resources. The resource/reserve categories
disclosed in the historical estimates are not consistent with
current CIM definitions. While we believe the estimates were
completed to the standards of the day they do not use current
mineral resource and reserve categories as required by NI 43-101.
The historic resource includes 1300 tons at 0.150 ounces per ton in
the proven category which is a stockpile owned by an unrelated
3rd party and not included in this transaction.
- Historic reported production on the property constitutes
approximately 85% of the whole camp:
- 632,590 ounces of gold with an average grade of 15.12 g/t Au
from the Reno, Queen, Goldbelt, Nugget, and Motherlode mines
- 252,461 ounces of silver
- Total Land area of approximately 1400 ha including 68 Crown
Grants and 8 Mineral Cell Claims
The Sheep Creek area was initially identified by regional
prospecting in 1896 after the discovery of multiple mines and
showings in analogous rocks throughout the Kootenay Lake area, most
notably the Bluebell Mine. The first production at Sheep Creek was
in 1900, with peak production of the area being reached in 1913 and
a decrease in 1916 due to high war-time mining costs and a fixed
gold price. Production continued until the 1950's with several
mines and mills being commissioned during that period. The
whole sheep creek area has recorded production of 741,515 ounces of
gold from 1900-1951 including the adjacent Kootenay Belle mine,
production from mines within the project area is reported to be
632,590 ounces of gold (1,301,719 tonnes grading 15.12 grams per
tonne gold).
The Sheep Creek area is underlain by a thick sequence of Lower
Cambrian and Upper Proterozoic argillite, quartzite, limestone and
schists belonging to the Kootenay Arc series. The tightly folded
stratigraphy is intruded by several granitic stocks, elongate
quartz-porphyry sills and numerous lamprophyre dykes. Two north
trending anticlines are the dominant structures in the area.
Gold mineralization is concentrated in en-echelon type quartz
veins within northeast striking, steeply-dipping faults. Vein
mineralogy consists of milky-white quartz, pyrite, chalcopyrite,
and lesser sphalerite, galena, pyrrhotite and rare visible gold.
The most promising mineralized zones develop where the veins cross
the axes of two north trending anticlines largely in brittle
quartzites of the Upper Nugget and Upper Nevada members. In
general, the veins are considerably narrow in the Argillaceous Reno
Formation but wider shoots developed in some highly metamorphosed
areas like the Reno Mine. There are at least 55 known veins in the
area, of which approximately 34 have had some level of
production.
Information from historic mining reports, publications and
exploration programs are currently being interpreted and compiled
to further the project.
Agreement Terms
Intact Gold will have the option to acquire 100% of the Sheep
Creek Property in consideration for:
(a) Payment to Yellowstone of an aggregate amount of
$600,000 to be paid upon the
following:
|
|
|
|
a.
|
$50,000 Upon approval
of the Transaction by the TSXV
|
|
|
|
|
b.
|
$50,000 - 6 months
after approval of the Transaction by TSXV
|
|
|
|
|
c.
|
$25,000 - 12 months
after approval of the Transaction by TSXV
|
|
|
|
|
d.
|
$25,000 - 18 months
after approval of the Transaction by TSXV
|
|
|
|
|
e.
|
$125,000 - 2 years
after the execution of the Definitive Agreement
|
|
|
|
|
f.
|
$100,000 - 3 years
after the execution of the Definitive Agreement
|
|
|
|
|
g.
|
$125,000 - 4 years
after the execution of the Definitive Agreement
|
|
|
|
|
h.
|
$100,000 - 5 years
after the execution of the Definitive Agreement
|
(b) Issuance to Yellowstone of an aggregate amount
of 3,500,000 shares to be issued upon the following:
|
|
|
|
a.
|
1,000,000 - 2 years
after the execution of the Definitive Agreement
|
|
|
|
|
b.
|
1,000,000 - 4 years
after the execution of the Definitive Agreement
|
|
|
|
|
c.
|
1,500,000 - 5
years after the execution of the Definitive Agreement
|
Forty (40) of the claims may be subject to a historic net
smelter return royalty of 5%, and twenty-one (21) of the claims may
be subject to a historic net smelter return royalty of 4.5%, both
in favour of arm's length third parties.
Qualified Person
Brandon Macdonald, P.Geo, is the
qualified person as defined in NI 43-101, that has reviewed and
approved the contents of this press release. The contained
information regarding past production is historical in nature and
has not been confirmed.
ON BEHALF OF THE BOARD OF DIRECTORS OF INTACT GOLD
CORP.
Per: Anthony Jackson,
President and CEO
Disclaimer for Forward-Looking Information
Except for statements of historical fact, this news release
contains certain "forward-looking information" within the meaning
of applicable securities law. Forward-looking information is
frequently characterized by words such as "plan", "expect",
"project", "intend", "believe", "anticipate", "estimate" and other
similar words, or statements that certain events or conditions
"may" occur. Forward-looking information in this press release
includes, but is not limited to, statements regarding expectations
of management regarding the acquisition of the Property. Although
the Company believes that the expectations reflected in the
forward-looking information are reasonable, there can be no
assurance that such expectations will prove to be correct. Such
forward-looking information is subject to risks and uncertainties
that may cause actual results, performance or developments to
differ materially from those contained in the statements including,
without limitation, the risks that the Company may not have the
funds necessary to make its payments pursuant to the Agreement,
that the TSX-V may not approve the transaction, and other factors
beyond the control of the Company. Except as required by law, the
Company expressly disclaims any obligation, and does not intend, to
update any forward-looking information in this news release.
The reader is cautioned that a qualified person has not done
sufficient work to classify the historical estimate as current
resources and Intact Gold is not treating the historical estimate
as current mineral resources.
Neither TSX Venture Exchange nor its Regulation
Services Provider (as that term is defined in the policies of the
TSX Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
SOURCE Intact Gold Corp