Pancon Enters Into Agreement to Acquire Gold Properties in South Carolina, United States
TORONTO, ONTARIO--(Marketwired - May 25, 2016) -
NOT FOR DISSEMINATION INTO THE USA
Pancontinental Uranium Corp. (NEX:PUC.H) ("Pancon" or the "Company") is pleased to announce it has signed a binding purchase agreement (the "PA") with Firebird Resources Inc. ("Firebird") (TSX VENTURE:FIX), Pageland Minerals Inc. ("Pageland") and Appalachian Resources LLC ("Appalachian"), to acquire a 100% interest in a high-potential, advanced exploration stage gold project (the "Jefferson Gold Project" or "Jefferson"), located in mining-friendly South Carolina, United States.
The Jefferson Gold Project is located within one of the most significant gold trends in the United States, which hosts the nearby Haile Gold Mine. Haile is less than 7 miles away and has a 4 million ounce resource currently being developed by OceanaGold Corp. (TSX:OGC), with initial production scheduled to start in 2017. The region also includes the former Ridgeway Gold Mine (approximately 35 miles away), a 15,000 tons per day open pit mine operated by Kennecott Minerals from 1988 to 1999, which produced in excess of 1.6 million ounces of gold, as well as the former Brewer Gold Mine which forms the western border of Jefferson and mined over 12 million tons during the period 1987 to 1995.
Rick Mark, President and CEO, stated "The Pancon Board believes we are in the early stages of a significant bull market for gold and the Jefferson Gold Project provides us with an excellent advanced exploration opportunity to capitalize on this renewed interest in gold. To reflect this new direction, we are asking our shareholders to approve a name change to "Pancontinental Gold Corporation" at our shareholder meeting on June 22, 2016. In conjunction with this acquisition we plan to complete an updated NI43-101 technical report as soon as feasible".
The Jefferson Gold Project consists of over 1,500 acres under lease from private landowners who own the surface and sub-surface mineral rights. Jefferson is along a nearly continuous northeast-striking structural trend of hydrothermal alteration and gold mineralization. The mineralized footprint of Jefferson is similar in magnitude to the footprints of the Haile and Ridgeway mines. The Jefferson properties contain multiple drill targets within a mineralized trend over 2 kilometres wide.
In 2011, Firebird and Pageland drilled four holes at Jefferson with very positive results, providing a base for establishing a significant gold resource. All four holes encountered mineralization, with the best hole averaging 1.27 grams per tonne over 164.3 metres (539 feet - true width unknown).
Assay results are as follows, using a 0.1 gram/tonne cutoff and up to 5 metres of internal dilution:
| FRDDJF-103 | From (m) | To (m) | Interval (m) | Interval (ft) | g/MT | Oz/ST |
| 25.9 | 190.2 | 164.3 | 539.0 | 1.27 | 0.037 | |
| Including | 80.8 | 85.3 | 4.6 | 15.0 | 8.57 | 0.250 |
| And | 90.5 | 93.5 | 3.0 | 9.8 | 3.84 | 0.112 |
| And | 105.2 | 106.4 | 1.2 | 4.1 | 3.20 | 0.093 |
| And | 153.0 | 153.9 | 0.9 | 3.0 | 19.36 | 0.565 |
| FRDDJF-102 | From (m) | To (m) | Interval (m) | Interval (ft) | g/MT | Oz/ST |
| 7.6 | 13.7 | 6.1 | 20.0 | 0.12 | 0.004 | |
| 19.5 | 21.0 | 1.5 | 5.0 | 0.37 | 0.011 | |
| 53.2 | 57.9 | 4.7 | 15.3 | 0.78 | 0.023 | |
| 63.4 | 134.1 | 70.7 | 232.0 | 0.88 | 0.026 | |
| Including | 68.8 | 70.5 | 1.7 | 5.3 | 7.60 | 0.222 |
| and | 106.7 | 122.1 | 15.5 | 50.7 | 1.64 | 0.048 |
| FRDDJF-101 | From (m) | To (m) | Interval (m) | Interval (ft) | g/MT | Oz/ST |
| 17.3 | 17.7 | 0.3 | 1.1 | 0.16 | 0.005 | |
| 28.1 | 28.5 | 0.4 | 1.2 | 0.13 | 0.004 | |
| 48.8 | 50.1 | 1.3 | 4.4 | 0.12 | 0.003 | |
| 66.1 | 69.6 | 3.6 | 11.7 | 0.29 | 0.008 | |
| 78.0 | 113.1 | 35.0 | 114.9 | 1.12 | 0.033 | |
| Including | 78.0 | 86.8 | 8.7 | 28.7 | 1.49 | 0.043 |
| FRDDJF-100 | From (m) | To (m) | Interval (m) | Interval (ft) | g/MT | Oz/ST |
| 21.3 | 25.9 | 4.6 | 15.0 | 0.12 | 0.004 | |
| 30.7 | 32.3 | 1.6 | 5.2 | 0.10 | 0.003 | |
| 97.2 | 99.4 | 2.1 | 7.0 | 0.17 | 0.005 | |
| 109.4 | 150.0 | 40.5 | 133.0 | 0.55 | 0.016 |
Hole information is as follows:
| Hole | Northing | Easting | Depth in ft | Depth in m | Azimuth | Angle |
| FRDDJF-100 | 1031044 | 2180955 | 505 | 153.9 | 165 | -75 |
| FRDDJF-101 | 1031007 | 2180973 | 404 | 123.1 | 165 | -60 |
| FRDDJF-102 | 1030875 | 2181005 | 451 | 137.5 | 0 | -90 |
| FRDDJF-103 | 1030729 | 2181042 | 658 | 200.6 | 345 | -65 |
| SC State Plane Coordinates | ||||||
Pancon has engaged the services of Dr. Dennis LaPoint, PhD, LGeo, to manage the exploration programs at Jefferson. Dr. LaPoint, who is President of and controls Appalachian, originally assembled the Jefferson property package and oversaw Firebird's and Pageland's 2011 drill program. In addition, Dr. LaPoint has over 40 years of experience in project generation and was instrumental in the discovery of Newmont's 4 million ounce Merian Gold Mine in Suriname.
Dr. Dennis LaPoint (PhD, LGeo), a qualified person under National Instrument 43-101 "Standards of Disclosure for Mineral Projects", has approved the technical information contained in this news release. Dr. LaPoint is not independent of Pancon, as he is a Consultant of the Company. Dr. LaPoint has verified all the technical data in this release as he managed and was responsible for Firebird's and Pageland's 2011 exploration program at Jefferson and was their identified QP when the assay results were originally released in Firebird's March 1, 2012 press release.
As consideration for acquiring the 100% ownership in the Jefferson Gold Project, along with all exploration and property information, Pancon has agreed to pay and issue to:
- Firebird and Pageland, in the aggregate: cash totalling $100,000, of which $30,000 (non-refundable) was paid on execution of the PA with the balance of $70,000 payable on August 18, 2016, conditional on closing; and, 1,000,000 common shares on closing; and to,
- Appalachian, 1,000,000 common shares on closing.
Closing is subject to: Pancon being satisfied with its due diligence and the assignment of the property leases, prior to August 18, 2016; and, regulatory approval. As part of having the property leases assigned, Pancon will be required to settle Firebird's and Pageland's current lease arrears with the private landowners of approximately USD $106,000 for 2015 and approximately USD $77,000 for 2016.
About Pancontinental Uranium Corporation
Pancontinental Uranium Corp. is a Canadian-based mining company listed on the NEX Board of the TSX Venture Exchange, trading under the symbol PUC.H. In 2015, Pancon sold its interest in its Australian rare earth element (REE) and uranium properties, formerly held through a joint venture, and retains a 1% gross overriding royalty on 100% of future production.
ON BEHALF OF THE BOARD OF DIRECTORS
Rick Mark, President and CEO
Cautionary Language and Forward-Looking Statements
This news release contains forward-looking information which is not comprised of historical facts. Forward-looking information is characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur. Forward-looking information involves risks, uncertainties and other factors that could cause actual events, results, and opportunities to differ materially from those expressed or implied by such forward-looking information. Factors that could cause actual results to differ materially from such forward-looking information include, but are not limited to, changes in the state of equity and debt markets, fluctuations in commodity prices, delays in obtaining required regulatory or governmental approvals, and other risks involved in the mineral exploration and development industry, including those risks set out in the Company's management's discussion and analysis as filed under the Company's profile at www.sedar.com. Forward-looking information in this news release is based on the opinions and assumptions of management considered reasonable as of the date hereof, including that all necessary governmental and regulatory approvals will be received as and when expected. Although the Company believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information. The Company disclaims any intention or obligation to update or revise any forward-looking information, other than as required by applicable securities laws.
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.
Contact
Pancontinental Uranium Corp.
Rick Mark
President and CEO
(416) 293-3957
(416) 293-8437
info@panconu.com