Intact Gold acquires contiguous 43-101 Gold Resource Properties
VANCOUVER, May 10, 2016 /CNW/ - Intact Gold Corp. (TSX-V: ITG) (FSE: 1A5) (the "Company" or "Intact Gold"), is pleased to announce that it has entered into an option agreement dated May 9, 2016 (the "Agreement") with Caprock Ventures Corp. ("Caprock") is to acquire a 100% interest in, and to, certain mineral properties together with the surface rights, mineral rights, personal property and permits associated therewith (collectively, the "Belletere Extreme East Property" and the "Ortona Property" or collectively the "Properties"), located five kilometres east of the town of Belleterre, Temiscamingue, Quebec.
The Ortona Property
The Ortona property is located in the Guillet township and comprises 15 claims covering an area of 272 hectares. It sits on the north west border of the previous Belleterre Mine mining concession and 3 kilometres north west of the Guillet property, to which Intact Gold has an option to acquire 100%.
The main known showing on this property consists of a gold-bearing vein with a maximum width of 2.1 metres, located within a shear zone. Historic channel samples along a 21 meter long section of this vein returned gold grades ranging from 5.88 to 48.98 g/t Au (RP190-11). Additional channel samples along the vein returned gold grades between 2.18 to 78.9 g/t Au on widths between 0.3 metre and 0.7 metre (GM 10617).
The Belleterre Extreme-East property
Comprising 7 mineral claims, the property is located 3 km east of Belleterre and 60 km east of Ville-Marie, Temiscamingue, Quebec, adjacent to Intact Gold's Guillet property.
Previously, resource estimate was performed in order to evaluate the gold potential of this project. The results were an estimated 21,178 tons in the indicated category, grading at 6.37 g/t Au and 33,465 tons in the inferred category grading 5.47 g/t Au, for a total (indicated + inferred) of 54,644 tons of ore grading 5.77 g/t (0.17 Oz/t) Au (from 43-101 Technical Report by Mr. Donald Théberge, Ing., M.B.A.. in May 2009).
Additionally, more recent work on the property has identified a significant gold bearing structural corridor. This is marked by the presence of quartz-carbonate veins in a fractured fault zone, with mineralization similar to the Abitibi orogenic-type deposits, such as the Sigma and Lamaque mines. The most significant results included a channel sample with 32.23 g/t Au over 2 m, and 21.73 g/t Au over 0.91 m intersected in drilling. (Rapport Géologique - Programme de forages 2002, R. Roy P.Geo, Janvier 2003).
Lying south-east of, and in between the Ortona and Belleterre Extreme-East properties, JAG Mines Ltd's Belleterre property has identified similarly mineralized zones associated with weathered intrusive porphyries and shear zones. Results from grab samples have been up to 27.7 g/t Au and 37.0 g/t Ag.
Closing of the Agreement is subject to a number of conditions, including the receipt of the approval of the TSX Venture Exchange (the "TSX-V").
Anthony Jackson of Intact Gold comments: "Acquiring both Ortona and Belletere Extreme East is a positive and exciting step for the Company. The properties are contiguous to our recent Guillet property acquisition and gives us a greater presence in this exciting area".
Agreement Terms
Intact Gold will have the option to acquire 100% of the Ortona and Belletere Extreme East Property in consideration for:
| (a) | payment to Caprock of an aggregate amount of $25,000 to be paid upon the following: | ||
| a. | payment to Caprock of $10,000 upon signing of agreement; | ||
| b. | payment to Caprock of $15,000 upon receipt of TSX-V approval; | ||
| (b) | issuance to Caprock of 1,500,000 common shares of the Company (each, a "Share") upon receipt of TSX-V approval; and | ||
| (c) | Intact Gold must incur $500,000 in exploration expenditures over a period of three years from date of signing the agreement. | ||
The Properties are subject to a 0.5% net smelter royalty (the "Royalty") on future gold production which includes advance royalty payments of $25,000 annually on Dec. 31, beginning in 2020 to Caprock. The Company has the option at any time to purchase 0.5% of the Royalty on payment of $500,000 to Caprock. The original vendors of the Ortona property will retain a 1% NSR Royalty on the Properties. Intact Gold will have the right to purchase the 1% for $1.0 million. The original vendors of the Belleterre Extreme East will retain a 3.5% NSR. Intact gold will have the right to purchase the first 2% for $1 million, and the remaining 1.5% for $750,000 at any time.
Qualified Person - David Hladky, P. Geo., is the Qualified Person as defined in National Instrument 43-101, that has reviewed and approved the contents of this press release.
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.
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.
Contact
For further information, please contact the Company at 604-283-1722.