VANCOUVER, British Columbia,
Jan. 29, 2021 /CNW/ -- St. James
Gold Corp. (TSX – V: LORD) (OTC: LRDJF) (FSE: BVU3), the
"Company" has been advised that TSX Venture Exchange has
accepted for filing documentation pertaining to an option agreement
(the "Agreement") dated January 7,
2021 between the Company and Herb M.
Froude, Robert Snook and
Alexander S. Duffett (the
"Optionors"), whereby the Company can acquire a 100% interest in
certain mineral claims in Newfoundland,
Canada known as the Quinn Lake Claims (the "Property"). The
Quinn Lake Claims are comprised of two contiguous map-staked
mineral licenses, for a landholding of 1,730 acres (the "Property")
in the emerging prolific central Newfoundland gold district. Entered into
at arm's length, the Property is not only adjacent to Marathon
Gold.'s Valentine Lake property
where over 4 million ounces of gold have been evaluated to
pre-feasibility, but is also situated 17 km northeast from the
Marathon gold deposit and along strike of the main gold bearing
structure in the district, the Valentine Shear Zone. The
Property is accessible by a network of well-maintained seasonal
gravel resource roads originating at Millertown approximately 35 km to the
north.
The Company knows of no reason for the increase in price and
volume that has occurred in their stock today other than the
Company's acquisition of the Grub line property originally
announced December 17, 2020 and the
Quinn Lake property originally announced January 15, 2021.
The Property is located within the Exploits Subzone of the
Dunnage tectonostratigraphic zone and is underlain by rocks of the
Victoria Lake supergroup, a structurally complex, composite collage
of bimodal Neoproterozoic to Ordovician arc-related magmatic and
sedimentary rocks. This structurally controlled gold district
in central Newfoundland is
emerging as a major area of gold endowment and occurs within
a northeast-trending corridor defined by crustal-scale
faults. Known as the Rogerson Lake Conglomerate, the presence
of Silurian syn-orogenic polymict conglomerate reflects the
preservation of syn-orogenic upper crustal clastic sequences
commonly associated with orogenic gold vein systems. Gold
deposits and other gold occurrences in the district show that
mineralization can be hosted with volcanic and epiclastic rocks
that are in fault contact with the Rogerson Lake
Conglomerate. This setting is very likely the most
prospective target at the Quinn Lake property.
To the southwest of the Property, the Rogerson Lake corridor
hosts Marathon Gold's Valentine Lake
project where gold mineralization has been traced over a distance
of 18 km to several other deposits, while along to the
northeast at Wilding Lake, gold mineralization is also hosted by
quartz-tourmaline veins associated with shearing along a thrust
fault within the Rogerson Lake conglomerate. Situated between
these two projects, the local geology is inferred from geophysical
surveys and adjacent projects, and indicates the presence of the
Valentine Lake Shear Zone and the Rogerson Lake Conglomerate which
are spatially related and define the corridor favourable for gold
mineralization.
As commented by George
Drazenovic, CEO of St. James Gold Corp., "We are excited
to build on our recent Grub Line option agreement and expand our
portfolio of exploration gold assets in Newfoundland. While
there has been considerable past exploration for volcanogenic base
metal mineralization surrounding the Rogerson Lake corridor, until
recently, the Conglomerate has not seen significant exploration for
gold. In the past month alone, Marathon Gold announced drill
results of the Berry Zone and Narrows prospect situated southwest
of our property along this structural corridor, while northeast of
our property and on strike with Marathon Gold's Valentine Lake project, Canterra Minerals just
announced a planned $2.75 m. work
exploration program at their Wilding Lake gold project. We will
continue to monitor activity in this rapidly emerging gold region,
further develop the geological model, and put together a work
program that will ultimately target enhanced value for our
shareholders."
Despite the emergence of recent discoveries along the
gold-bearing corridor related to the Valentine Lake Shear Zone and
Rogerson Lake Conglomerate, and geological mapping surveys
conducted by the Geological Survey of Newfoundland and Labrador, little work on the Property has been
conducted to date. In 1989, one of Noranda's till sampling
lines crossed the Property area and reported anomalous values up to
528 ppb gold, while a 2013 review by Paragon Minerals of existing
airborne electromagnetic-magnetic survey data, prospecting and
ground IP geophysical survey recommended more geophysical work
focusing on the Rogerson Lake Conglomerate contacts.
As stated by George Drazenovic,
"Recent exploration by others on the surrounding areas traced
boulder trains with gold mineralization traced to bedrock sources
leading to significant gold discoveries. However, past soil
and stream sediment sampling efforts on the Property were limited
and focused on surficial materials that were not representative of
underlying bedrock; and geophysical targets, in spite of showing
some promise, have not been tested by drilling. Overall, past
efforts lacked continuity and the budgets to best reflect the
risk-reward scenarios for this strategically situated area, largely
due to the fact that most discoveries along this corridor have only
materialized recently. We intend to pursue a program that
will test these theories and unlock value for our
shareholders."
Pursuant to the terms of the option agreement, total
consideration payable by the company is an aggregate of
$65,000 cash over three years,
exploration totalling not less than $100,000 over three years, and the issuance of an
aggregate of 300,000 common shares of the company as follows:
- 75,000 common shares on the approval of the option agreement by
the TSX Venture Exchange;
- 75,000 common shares on the first anniversary of exchange
approval;
- 75,000 common shares on the second anniversary of exchange
approval;
- 75,000 common shares on the third anniversary of exchange
approval.
The vendors will retain a royalty of 2-per-cent net smelter
returns on production from the Quinn Lake claims with one half of
the total royalty purchasable for $1,000,000 pre-production. Additionally, the
company will be required to issue an additional 500,000 common
shares to the vendors if at any time before or after exercise of
the option the company obtains a National Instrument 43-101 report
estimating an inferred mineral resource of not less than 100,000
ounces of gold.
A technical report for the Quinn Lake claims is being prepared
in connection with the acquisition and in accordance with National
Instrument 43-101 – Standards of Disclosure for Mineral
Projects and the policies of the Exchange.
Historic information on the Quinn Lake claims, recent activity
on adjacent companies and governmental geological compilations
provide an indication of the exploration potential of the
project.
Dr. Stewart Jackson, P.Geo.,
Senior Technical Advisor Geologist and Qualified Person within the
meaning of National Instrument 43-101 Standards of Disclosure for
Minerals Projects, has reviewed and approved the technical and
scientific information presented herein as accurate and approved
this news release.
About St. James Gold Corp.
St. James Gold Corp. is a publicly traded company listed on
the TSX Venture Exchange focused on creating shareholder value
through the discovery and development of economic mineral deposits
by acquiring prospective exploration projects with well delineated
geological theories, integrating all available geological,
geochemical and geophysical datasets, and funding
efficient exploration programs. The Company
currently holds an option to acquire a 100% interest in 29
claims covering 1,791 acres in the Gander gold district in
north-central Newfoundland
adjacent to New Found Gold Corp.'s Queensway North project, and an
option to acquire a 100% interest in 28 claims covering 1,730 acres
in central Newfoundland adjacent
to Marathon Gold's Valentine Lake
property.
George Drazenovic, CPA, CGA, MBA,
CFA
CEO
St. James Gold Corp.
For further information, please contact:
George Drazenovic, Chief Executive
Officer
Tel: 1 (800) 278-2152
Email: info@stjamesgold.com
NEITHER THE 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.
St. James Gold Corp.
For further information, please contact:
George Drazenovic, Chief Executive
Officer
Tel: 1 (800) 278-2152
Email: info@stjamesgold.com
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content:http://www.prnewswire.com/news-releases/st-james-gold-corp-receives-exchange-approval-of-its-quinn-lake-property-acquisition-in-newfoundland-and-addresses-increase-in-volume-and-price-of-its-stock-301218387.html
SOURCE St. James Gold Corp.
