Origen Resources Inc. Options 75% of Bonanza Mountain to Tearlach Resources Ltd.
Vancouver, June 15, 2020 - Origen Resources Inc. (CSE: ORGN) (the "Company" or "Origen") is pleased to announce that it has signed an option agreement with Tearlach Resources Ltd. (TSXV: TEA.H) ("Tearlach") to acquire a 75% interest in the Company's high-grade Bonanza Mountain gold and copper project, in the historic Knight's mining camp, Grand Forks, B.C. "This is another significant milestone for our very young company and we welcome Tearlach as a partner in exploring our Bonanza Mountain project. This follows the Company's business model of generating quality projects and partnering with highly capable groups to advance our assets," states Blake Morgan, President.
Bonanza Mountain Project Highlights
The road accessible Bonanza Mountain property consists of four claims totalling 1603 hectares (ha) and is situated approximately 20 km north of Grand Forks, BC, on the east slope of the Granby River. The Project encompasses the historic Knight's Camp, centered on the Bonanza, Mountain View, Colorado and Nevada lapsed Crown Grants ("Bonanza Crown Grants") on what is locally known as Bonanza Mountain.
Bonanza Mountain was the scene of significant exploration and development activity over a short period from the late 1800s through to the early 1900s. By 1901, multiple shafts and tunnels were developed on the Bonanza Crown Grant with references of high-grade gold and copper sourced from the workings. Historic details of the activities have been sourced from local newspapers from the period, original Crown Grant documents, Annual Reports to the Minister of Mines, and the online GATOR system, a database registry of Crown land records for British Columbia.
The Company completed a comprehensive field program in the fall of 2019 and identified three separate styles of mineralization at Bonanza Mountain highlighted by the following grab samples collected at or in close proximity to the 15 historical workings, comprising shafts, adits and blast pits identified on the property:
- Cu-Zn-Pb-Ag Skarn mineralization with one grab sample grading 2.44% Cu, 4.41% Zn, 0.47% Pb and 53 g/t Ag*;
- Ag-Pb-Zn Fault Breccia (cataclasite) mineralization with one grab sample grading 266 g/t Ag, 3.14% Pb and 5.31% Zn*; and
- Au-Ag Epithermal Quartz Vein hosted mineralization with one grab sample grading 19.7 g/t Au and 28.0 g/t Ag*.
*Grab samples are solely designed to show the presence or absence of mineralization and to characterize the mineralization. Grab samples are by definition selective and not intended to provide nor should be construed as a representative indication of grade or mineralization at the Project; and the grab samples analysed from the Project reflect a broad range in grade from below detection limit to the grades highlighted herein.
Geochemical soil sampling completing during the fall 2019 program also delineated a greater than 1km long by 150m wide north-south coincident Cu-Ag-Pb-Zn soil anomaly that follows a significant topographic feature identified through aerial drone orthophotography and is open to the north along this same feature. Most historic workings are within or adjacent to this multi-element soil anomaly.
Rick Kemp, P Geo., a Qualified Person as that term is defined in NI 43-101 has prepared, supervised the preparation or approved the scientific and technical disclosure in the news release.
Terms of the Option Agreement
The Company has granted Tearlach an option to acquire a 75% interest in the project by incurring $500,000 in exploration expenditures on the property, paying the Company $210,000 and issuing 500,000 shares over a three-year period. Upon exercise of the option, Origen will be granted a 1.5% net smelter royalty ("NSR") on the property, of which Tearlach can purchase 1.0% of the NSR for $1,000,000 within one year of commencement of commercial production.
About Origen
Origen is an exploration company engaged in generating, acquiring and advancing base and precious metal properties. The Company currently holds a property portfolio of four 100% owned precious and base metal projects in southern British Columbia and recently acquired a 100% interest in the 26,771 ha LGM project and an option to acquire a 100% interest in the 3,971 ha Wishbone property in the mineral rich Golden Triangle of British Columbia.
On behalf of Origen,
Blake Morgan
President
For further information, please contact Blake Morgan, President at 236-878-4938 or Gary Schellenberg, CEO at 604-681-0221.
Neither the Canadian Securities Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this press release.