Harvest Gold Corp. to Acquire 100% of the Mosseau Gold Project in the Abitibi Region of Quebec
Vancouver, Dec. 18, 2023 - Harvest Gold Corp. (TSXV:HVG) ("Harvest Gold" or the "Company") is pleased to announce that it has entered into an Option Agreement (the "Agreement") with Vior Inc. ("Vior") (TSXV: VSR). Pursuant to the Agreement, Harvest Gold can earn up to a 100% interest in the Mosseau Gold Project ("Mosseau" or the "Mosseau Gold Project"), subject to TSX Venture Exchange (the "TSXV") approval. Mosseau spans 147 claims totaling 7265.88 hectares (72.66 km2), which includes a 17.7 km long gold-bearing structure running through the length of the property. Mosseau adjoins the Urban Barry Greenstone Belt of the Abitibi Region of Quebec (Figure 1). Vior is a Montreal based, Quebec-focused mineral exploration company and is owned 14.1% by Osisko Mining Inc. ("Osisko Mining") (TSX: OSK).
Rick Mark, President and CEO of Harvest Gold states: "I am very pleased to inform our shareholders that our year-long search for a new, high quality gold exploration project in a mining-friendly jurisdiction is complete and, further, we can earn 100% of this opportunity. Mosseau has only recently been consolidated by Vior, so it has not undergone any extensive, systematic exploration in over 35 years, enhancing our chances for discovery."
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Figure 1: Regional Location of Mosseau and the Urban-Barry Greenstone Belt
The Mosseau Gold Project
Mosseau lies at the western boundary of the prolific Urban Barry Greenstone Belt, an area renowned for both historic and current mining activities, including the Windfall deposit. Notably, Osisko Mining and the well-known prospector, Shawn Ryan, hold neighboring claims. Recent wildfires and logging activities have fortuitously improved access to the property and revealed numerous new outcrop exposures, which further enhance exploration prospects.
Mosseau has been amalgamated under single ownership for the first time by Vior. It is 100% owned by Vior, with the majority of the claims not subject to any underlying royalties or encumbrances.
Mark Fedosiewich, President and CEO of Vior commented: "Vior is pleased to announce the execution of this definitive Agreement with the experienced and proven team at Harvest Gold. Our recently consolidated district-scale Mosseau Gold Project warrants the resources and commitment that Harvest Gold will dedicate to unearth a significant new discovery at Mosseau."
Short Term Plans
Harvest Gold will begin a thorough compilation of all historical exploration data and is planning to conduct a high-resolution airborne magnetics survey during the winter over previously unsurveyed areas and selected surveyed sections of the property. The geological team will interpret the airborne survey results in conjunction with the consolidated historical data to establish priorities for an intensive field season in spring 2024. The field program will consist of detailed mapping, prospecting, and soil sampling aimed at accurately delineating priority drill targets. Harvest is also contemplating drilling the historical Morono deposit this summer.
Harvest Gold has had several meetings with the Vior geological team and will continue that collaboration. Vior's extensive regional knowledge and their experience within Quebec are invaluable to Harvest Gold as the Company begins work on Mosseau.
The Property
Warren Bates, Director of Property Investigation for Harvest Gold states: "We believe that with the distinct geological characteristics defined below, and on a more local property scale, the presence of ultramafic rocks plus Cu-Ni mineralization, we are looking at an area representing deep seated structures. This ground has also undergone significant uplift and movement as indicated by an interpreted sedimentary basin, all features that are common to many of the more important gold camps."
The Mosseau Gold Project exhibits several geological characteristics common to significant orogenic gold deposits, including:
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Major Greenstone Belt within the Abitibi region with significant known gold deposits (Urban-Barry)
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Regional large scale deformation zone (Toussaint and Kiask River fault zones)
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Geological framework including variable intrusives (felsic to ultramafics), bi-modal volcanism and sedimentary basins
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Demonstrated continuity of property scale mineralized zones (Morono Shear Zone)
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Favourable gold environment with the presence of polymetallic mineral showings (Au, Cu, Ni)
Mosseau hosts numerous gold showings and prospects, as well as copper and nickel occurrences (Sigeom), both explored and underexplored.
Field investigations and drill core review by Harvest Gold have verified the presence of shear-hosted gold mineralization. The property contains multiple, parallel shear zones consisting of quartz-sericite schist, which further underscores its potential for gold discovery.
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Figure 2: Location of gold showings and prospects overprinted on the geology map of Mosseau
Qualified Person Statement
The disclosure of technical or scientific information in this press release has been reviewed and approved by Phillip Terrence Coyle, P.Geo. (OGQ 2079) for Harvest Gold. Mr. Coyle serves as a "Qualified Person" as defined in National Instrument 43-101, Standards of Disclosure for Mineral Projects of the Canadian Securities Administrators. He has not been able verify the data disclosed, including sampling, analytical and test data, underlying the technical information in this news release since such data was historical and the majority of the original drill core is not readily available.
Option Terms
Pursuant to the Agreement, which is subject to TSXV approval and completion of a formal Option and Joint Venture Agreement, Harvest Gold can earn a 100%* interest in the Mosseau Gold Project by completing the following:
| Deadline | Payment | Work Commitment(1)(2) | Harvest Interest Earned(3)(4) | |
| Cash(1) | Common Shares | |||
| Within three (3) business days of regulatory approval | $50,000 | 2,000,000 | Nil | Nil |
| Earlier of (i) the completion of a minimum $500,000 financing; or (ii) February 28, 2024 | $50,000 | 2,000,000 | Nil | Nil |
| On or before December 31, 2024 | $100,000 | 2,000,000 | $250,000 | Nil |
| On or before December 31, 2025 | $100,000 | 2,000,000 | $1,250,000 | Nil |
| On or before December 31, 2026 | $100,000 | 2,000,000 | Nil | Nil |
| On or before December 31, 2027 | $100,000 | 2,000,000 | $1,500,000 | 80%(5) |
| If Harvest determines to acquire a 100% interest, on or before June 30, 2028 | $1,500,000 | Nil | Nil | 100% |
| Total: | 2000000 | 12000000 | 3000000 | 100% |
Notes:
(1) All dollar amounts referred to are stated in Canadian Dollars.
(2) All work in excess of the yearly minimum amount will be applied to the following year's Work Commitment.
(3) Subject to varying 0.5 to 2.0% net smelter returns royalties (the "NSR") due to underlying vendors of claim located over the historic Morono resource and Soquem claims located in the northwest corner of Mosseau.
(4) Subject to a 1% NSR royalty to Vior of which 0.5% maybe purchased by Harvest Gold for $1,000,000 at anytime after the publication of a 43-101 compliant mineral resource.
(5) If Harvest Gold does not elect to earn a 100% interest, either by failing to complete the required $1,000,000 payment on or before June 30, 2028 or by notifying Vior in writing of its intent prior to such deadline, Harvest Gold and Vior will form a joint venture pursuant to which Harvest Gold and Vior will respectively hold an undivided 80% and 20% interest (the "Joint Venture"). Thereafter, Harvest Gold and Vior will each fund all work expenditures on Mousseau in proportion to their respective interests in Mosseau and, if either party fails to pay its share of funding, a standard dilution calculation will apply.
About Harvest Gold Corporation
Harvest Gold is focused on exploring for near surface gold deposits and copper-gold porphyry deposits in politically stable mining jurisdictions. Harvest Gold's board of directors, management team and technical advisors have collective geological and financing experience exceeding 400 years.
Harvest Gold acknowledges that the Mosseau Gold Project straddles the Eeyou Istchee-James Bay and Abitibi territories. Harvest Gold is committed to developing positive and mutually beneficial relationships based on respect and transparency with local Indigenous communities.
ON BEHALF OF THE BOARD OF DIRECTORS
Rick Mark
President and CEO
Harvest Gold Corp.
For more information please contact:
Rick Mark or Jan Urata
@ 604.737.2303 or info@harvestgoldcorp.com
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.
Forward Looking Information
This news release includes certain statements that may be deemed "forward looking statements". All statements in this news release, other than statements of historical facts, that address events or developments that Harvest Gold expects to occur, are forward looking statements. Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur.
Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in the forward-looking statements. Factors that could cause the actual results to differ materially from those in forward looking statements include market prices, exploitation and exploration successes, and continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements. Forward looking statements are based on the beliefs, estimates and opinions of the Company's management on the date the statements are made. Except as required by securities laws, the Company undertakes no obligation to update these forward-looking statements in the event that management's beliefs, estimates or opinions, or other factors, should change.