Proven ProbableCategory: Precious Metals
Ottawa, Ontario–(Newsfile Corp. – October 10, 2024) – Gold79 Mines Ltd. (TSXV: AUU) (OTCQB: AUSVF) (“Gold79” or the “Company”) is pleased to announce the closing of a first tranche of its previously announced $4,000,000 non-brokered private placement financing (the “Offering”), raising gross proceeds of $2,190,000 through the issuance of 8,760,000 units at $0.25 per unit.
Each unit consists of one common share of the Company and one-half common share purchase warrant. A total of 4,380,000 whole warrants were issued, with each warrant entitling the holder to purchase one common share of the Company at a price of $0.40 per share until October 9, 2026. The warrants are callable, at the option of the Company, in the event that the 20-day volume-weighted average price of the Company’s common share meets or exceeds $0.60 for ten consecutive trading days based on trades on the TSX Venture Exchange (“TSX-V”) and Alternative Trading Systems. Subscribers will be notified of the call provision being triggered and will have a 30-day period to exercise the warrants.
Warrants will contain provisions that prohibit the exercise by the holder, together with its affiliates, which would result in the holder, together with its affiliate, beneficially owning in excess of 9.99% of the issued and outstanding common shares of the Company immediately after giving effect to such exercise of the Warrant.
“We are pleased to close the first tranche of this financing allowing us to resume drilling at Gold Chain this month. Importantly, with the first hole of this new drill program, we plan to follow up hole GC23-28 at Tyro, which returned 9.1m at 51.1 g/t Au”, Derek Macpherson, President, CEO & Director stated. “The closing of this first tranche of the financing represents an exciting turning point for Gold79, and the completion of the balance of this financing and the transaction with Bullet Exploration Inc. will allow us to advance the Company’s projects, in particular Gold Chain, more aggressively.”
Additionally, the Company is pleased to announce that as a result of closing this first tranche of the financing it has begun preparation for a 1,000m core drilling campaign at its Gold Chain project in northwest Arizona.
This program represents the next step in the Company’s efforts to define a maiden resource at the Tyro Main Zone. Drilling is expected to commence later this month and will be completed in Q4 2024. In Figure 1, the Company has outlined the tentatively planned hole locations at Tyro. The Company will provide further updates on the drill program as work progresses.
Figure 1: Tyro Main Zone Plan View with Proposed Drill Holes
To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/5717/226219_9f4a1cb004e098e1_001full.jpg
In connection with this first tranche closing of the Offering, cash finder’s fees of $37,800 were paid, and 151,200 finder warrants were issued. The finder warrants are exercisable at $0.40 per share and expire October 9, 2026.
This private placement is subject to the final approval of the TSX-V. All securities issued in the first tranche of the placement are subject to a statutory hold period until February 10, 2025. It is expected that the next and potentially final tranche of the Offering would be closed later this month.
Officers and directors of the Company participated in the private placement and acquired 600,000 units for $150,000. The participation of these insiders in the private placement constitutes a Related Party Transaction within the meaning of Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions (“MI 61-101”). The board of directors of the Company, with participating directors abstaining, determined that the transaction is exempt from the formal valuation and minority shareholder approval requirements contained in sections 5.5(a) and 5.7(1)(a) of MI 61-101 for the related party transaction, as neither the fair market value of securities issued to the insiders nor the consideration paid by the insiders exceeded 25 percent of the Company’s market capitalization. The Company did not file a material change report in respect of the transaction 21 days in advance of the closing of the private placement because insider participation had not been confirmed. The shorter period was necessary in order to permit the Company to close the private placement in a timeframe consistent with usual market practice for transactions of this nature.
Proceeds raised in the placement will be used for exploration expenditures related to the Gold Chain, Arizona, project; property claim costs and contractual property payments; costs associated with the transaction with Bullet Exploration Inc., assuming the closing of the transaction with Bullet Exploration Inc. exploration expenditures related to the Jefferson North, Nevada, project and, for working capital and general corporate purposes.
The securities issued in the private placement will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) and may not be offered or sold within the United States or to or for the account or benefit of U.S. persons, except in certain transactions exempt from the registration requirements of the U.S. Securities Act. This press release does not constitute an offer to sell, or the solicitation of an offer to buy, securities of the Company in the United States.
Transaction Summary
Gold79 is pursuing the Offering for $4,000,000 in total in connection with its previously announced proposed amalgamation agreement with its wholly-owned subsidiary and Bullet Exploration Inc. (“Bullet”) to acquire all of the issued and outstanding shares of Bullet (the “Transaction”). The Transaction and the Offering are expected to create a well-funded gold exploration company focused on the southwest United States
Pursuant to the Transaction, Bullet shareholders will receive one (1) Gold79 common share for every three (3) Bullet common shares held. Existing shareholders of Gold79 and Bullet will hold approximately 54% and 46%, respectively, of the outstanding Gold79 shares on closing of the Transaction on a fully diluted, in-the-money basis (but prior to the completion of the Offering).
Additional details relating to the Transaction can be found in Gold79’s September 4, 2024 press release. Full details of the Transaction will be provided in the management information circular of Bullet to be prepared and filed in respect of the annual and special meeting of the Bullet shareholders to be held on November 25, 2024.
The closing of one or more tranches of the Offering are not contingent upon the closing of the Transaction. There can be no assurances that the Transaction will be completed and the proceeds from the Offering may be used entirely by Gold79 whether or not the Transaction is completed.
About Gold79 Mines Ltd.
Gold79 Mines Ltd. is a TSX-V listed company focused on building ounces in the Southwest USA. Gold79 has four gold projects, two of which are partnered with major gold producers (Kinross at Jefferson Canyon and Agnico at Greyhound). Gold79 is focused on establishing a maiden resource at its Gold Chain project in Arizona and advancing its Tip Top Project in Nevada.
For further information regarding this press release contact:
Derek Macpherson, President & CEO
Phone: 416-294-6713
Email: dm@gold79mines.com
Website: www.gold79mines.com.
Book a 30-minute meeting with our CEO here.
Stay Connected with Us:
Twitter: @Gold79Mines
Facebook: https://www.facebook.com/Gold79Mines
LinkedIn: https://www.linkedin.com/company/gold79-mines-ltd/
FORWARD-LOOKING STATEMENTS:
This press release may contain forward looking statements that are made as of the date hereof and are based on current expectations, forecasts and assumptions which involve risks and uncertainties associated with our business including the proposed Transaction, any future tranches of the current private placement or future private placements, the uncertainty as to whether further exploration will result in the target(s) being delineated as a mineral resource, capital expenditures, operating costs, mineral resources, recovery rates, grades and prices, estimated goals, expansion and growth of the business and operations, plans and references to the Company’s future successes with its business and the economic environment in which the business operates. All such statements are made pursuant to the ‘safe harbour’ provisions of, and are intended to be forward-looking statements under, applicable Canadian securities legislation. Any statements contained herein that are statements of historical facts may be deemed to be forward-looking statements. By their nature, forward-looking statements require us to make assumptions and are subject to inherent risks and uncertainties. We caution readers of this news release not to place undue reliance on our forward-looking statements as a number of factors could cause actual results or conditions to differ materially from current expectations. Please refer to the risks set forth in the Company’s most recent annual MD&A and the Company’s continuous disclosure documents that can be found on SEDAR at www.sedar.com. Gold79 does not intend, and disclaims any obligation, except as required by law, to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.
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.
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES OR
FOR DISSEMINATION TO U.S NEWS WIRE SERVICES
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/226219
Original Source: https://jayantbhandari.com/can-south-asians-assimilate-mae-azt/
Here, C.Jay Engel and I discuss how well South Asians assimilate into Western society:
Thanks for the help with editing from my friend, Maurice Jackson; here is the playlist of the speeches from the last Capitalism & Morality seminar:
On Investments
Here are some companies that I am interested in at the mentioned prices. I almost never chase stocks—illiquid stocks often come to me at my limit prices.
- Irving Resources (IRV; $0.29): I am spending the next week on a site visit with them. The two joint ventures—one with Newmont and Sumitomo on the Yamagano project and the other with JX Mining on the Omu project—are close to the finish line.
- Florida Canyon Gold (FCGV; $0.57): The merger with Integra Resources is underway and should close next month. There is still a 7% arbitrage upside left.
- Harfang Exploration (HAR; $0.07): It trades for less than its cash value. The merger with Neworigin (NEWO) should close next month. NEWO is hardly trading but could be worth a bid at $0.015.
- Bullet Exploration (AMMO; $0.075): It is merging with Gold79 (AUU; $0.225). At the current share price of AMMO, there is a significant arbitrage upside, although not many shares are available.
- Aztec Minerals (AZT; $0.175): They are drilling their project in Arizona. I expect the results to be good. I am sitting on a stink bid, as AZT has increased significantly over the next few days.
Finally, I have recently started conducting weekly online discussions with guests on X. These are mainly on the Third World, focused primarily on India. The discussions are also available on podcast services.
Jayant Bhandari
Disclaimer: All information found here, including any ideas, opinions, views, predictions, forecasts, commentaries, suggestions, or stock picks, expressed or implied herein, are for informational, entertainment, or educational purposes only and should not be construed as personal investment advice. While the information provided is believed to be accurate, it may include errors or inaccuracies. The sole purpose of these musings is to show my thinking process when analyzing a stock, not to provide any recommendations. I will not and cannot be held liable for any actions you take resulting from anything you read here. Conduct your due diligence or consult a licensed financial advisor or broker before making any investment decisions. Any investments, trades, speculations, or decisions made based on any information found on this site, expressed or implied herein, are committed at your own risk, financial or otherwise.
Vancouver, British Columbia–(Newsfile Corp. – October 4, 2024) – EMX Royalty Corporation (NYSE American: EMX) (TSXV: EMX) (FSE: 6E9) (the “Company” or “EMX“) is pleased to announce it has recently repurchased shares in a block trade from an undisclosed seller via its existing Normal Course Issuer Bid (“NCIB”) in the amount of two million shares at a price of C$2.05, totaling C$4.1 million or approximately US$3.0M. Since the NCIB was announced on February 7, 2024, EMX has purchased a total of 2,805,346 shares at an average price of C$2.15, totaling approximately C$6.0M. EMX may purchase a remaining 2,194,654 shares under the current NCIB program expiring February 13, 2025.
EMX CEO Dave Cole commented “EMX is committed to astute allocation of capital. We believe EMX shares are undervalued. Buybacks at these levels should provide exceptional risk-adjusted returns on capital.”
About EMX – EMX is a precious and base metals royalty company. EMX’s investors are provided with discovery, development, and commodity price optionality, while limiting exposure to risks inherent to operating companies. The Company’s common shares are listed on the NYSE American Exchange and TSX Venture Exchange under the symbol “EMX”. Please see www.EMXroyalty.com for more information.
For further information contact:
David M. Cole
President and CEO
Phone: (303) 973-8585
Dave@EMXroyalty.com
Isabel Belger
Investor Relations
Phone: +49 178 4909039
IBelger@EMXroyalty.com
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release
Forward-Looking Statements
This news release may contain “forward-looking statements” that reflect the Company’s current expectations and projections about its future results, but which are not statements of fact. When used in this news release, words such as “estimate,” “intend,” “expect,” “anticipate,” “will”, “believe”, “potential” and similar expressions are intended to identify forward-looking statements, which, by their very nature, are not guarantees of the Company’s future operational or financial performance, and are subject to risks and uncertainties and other factors that could cause the Company’s actual results, performance, prospects or opportunities to differ materially from those expressed in, or implied by, these forward-looking statements. These risks, uncertainties and factors may include, but are not limited to the Company being unable to comply with the covenants under the Credit Agreement, including the repayment of any amounts owing under the Loan, and other factors.
Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this news release or as of the date otherwise specifically indicated herein. Due to risks and uncertainties, including the risks and uncertainties identified in this news release, and other risk factors and forward-looking statements listed in the Company’s MD&A for the quarter ended June 30, 2024 (the “MD&A”), and the most recently filed Annual Information Form (“AIF”) for the year ended December 31, 2023, actual events may differ materially from current expectations. More information about the Company, including the MD&A, the AIF and financial statements of the Company, is available on SEDAR+ at www.sedarplus.ca and on the SEC’s EDGAR website at www.sec.gov.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/225549
Published 6 years ago
on January 29, 2019
Original Source: https://www.visualcapitalist.com/everything-you-need-to-know-on-vms-deposits/
Everything You Need to Know about VMS Deposits
People are often not aware of where their most prized devices really come from.
Phones, cars, and computers might not seem like the most natural objects. But the metals that make them come from natural processes deep in the earth’s crust – processes that have been going on for 3.4 billion years, and continue to this day.
Today’s visualization comes to us from Foran Mining Corp. and goes in depth to show how one type of mineral deposit, Volcanogenic Massive Sulphide or “VMS”, forms and is the primary source for many of the materials that make the modern world.
What is a VMS Deposit?
Volcanogenic Massive Sulphide (VMS) deposits are one of the richest sources of metals such as copper, lead, and zinc globally. VMS deposits can also produce economic amounts of gold and silver as byproducts of mining these deposits.
Currently, global metal production from VMS deposits account for 22% of zinc, 9.7% of lead, 6% of copper, 8.7% of silver and 2.2% of gold.
Where are VMS deposits found?
VMS deposits occur around the globe and often form in clusters or camps, following the tectonic plate boundaries in areas of ancient underwater volcanic activity.
Natural processes underway today are forming the VMS deposits of tomorrow. This gives scientists an incredible advantage in witnessing how VMS deposits form and gives a special advantage to geologists for what to look for.
Mineralization and Formation
The geological processes that form VMS deposits occur at the depths of the ocean and are associated with volcanic and/or sedimentary rocks.
At sections where the Earth’s crust is thin due to faulting or separation of tectonic plates, the magma heats up the ocean floor.
As the Earth’s crust heats up, the ground softens and allows heated magma to escape towards the ocean or crust contact, the early beginning of a volcano and the deposition of minerals into the ocean floor from magma. Also, the heated ground cracks and begins a process that draws in sea water into the crust which becomes super-heated and imbued with minerals. Black and white smokers expel this seawater back to the surface.
Black and white smokers exhale a mineral rich-plume that spreads out over the ocean floor. As it moves farther and farther away from its heat source, the plume precipitates minerals onto the ocean floor. Over time, the continual activity of the smokers and their mineral rich plumes create mineralized beds that become VMS deposits.
With the movement of the Earth’s tectonic plates, these mineral rich beds are transposed and can be found on land that was once underwater.
How Big Can VMS Deposits Get?
Current resource and historical production figures from 904 VMS deposits around the world average roughly 17 million tonnes (“Mt”), of which is approximately 1.7% copper, 3.1% zinc, and 0.7% lead.
A few giant mineral deposits (greater than 30 Mt) and several copper-rich and zinc-rich deposits of median tonnage (~2 Mt) skew the averages.
Several large VMS camps are known in Canada, including the Flin Flon, Bathurst and Noranda camps. The high-grade deposits within these camps are often in the range of five to 20 million tonnes of ore and can be much larger.
Meanwhile, approximately 90 VMS deposits have been discovered in the Iberian Pyrite Belt which runs through Portugal and Spain. Several of these are larger than 100 million tonnes, making this region one of the most significant hosts to VMS deposits in the world.
BY John Hathaway | Tuesday, October 1, 2024
We believe the stage is set for a powerful advance in gold mining equities. While the 27.96% year-to-date advance in the bullion price could (but won’t necessarily) take a breather for the rest of 2024, significant catch-up potential for deeply undervalued gold miners has been barely exploited.
With gold trading at all-time highs, precious metals mining shares are just beginning to stir. GDX (VanEck Vectors Gold Miners ETF1 and a proxy for gold mining shares) has increased 30.30% year-to-date, only slightly more than the metal’s year-to-date gain of 27.96% (as of 9/30/2024). Looking at the five-year return comparison (10/1/2019 to 9/30/2024), mining stocks gained 47.91%, distantly lagging gold’s 78.11% rise.
We have addressed the disconnect between gold bullion and gold equities in previous commentaries. Gold stocks, in our opinion, are coiling for a sharp advance during the remainder of 2024. At the time of writing, GDX is breaking out above a five-year trading range that looks very similar, with a six-month lag, to gold’s breakout earlier this year.
Figure 1a./b. Gold Bullion vs. Gold Mining Stock Prices (2019-2024)
Source: Bloomberg. Data as of 9/30/2024.
Favorable Fundamentals for Gold Miners
The investment fundamentals for miners have rarely been so favorable against a backdrop of such disinterest. The Q3 2024 average gold price (the most important single variable for miners’ earnings and cash flow) will exceed Q2 by 5.2% sequentially, and 2023 by 18.8% year-over-year. For many companies, production is weighted toward the second half; we believe we may see blockbuster Q3 earnings reports later in October and early November.
Looking ahead to 2025, we expect production costs to remain stable or even decline in the event of a recession. Profit margins could expand even if the U.S. dollar gold price marks time (which we don’t expect). Figure 2 depicts the relationship between gold and commodity prices (CRB Index2). A rising trend line tends to be exceptionally bullish for the earnings of gold miners.
Figure 2. Ratio of Gold Price to CRB Index (2022-2024)
Source: StockCharts.com. Data as of 8/30/2024.
Gold Is Still Underpriced
A key factor in the underperformance of mining shares is general disbelief that current gold bullion prices are sustainable or capable of further increase. In our view, the breakout in the gold price is not a fluke. The many contributing factors include (but are not limited to) de-dollarization, central bank buying, seemingly intractable U.S. fiscal issues, a possible recession, further monetary malpractice by the Federal Reserve (and other central banks) and the worrisome geopolitical landscape. Still, gold skeptics far outnumber believers. Proof can be seen in the forecasts for future gold prices from a broad array of financial firms (compiled by Beacon Securities; individual estimates by firm in Appendix A).
Figure 3. Gold Price Forecast
Who would invest in a gold mining stock with such a negative price outlook? While there are a few outliers, the consensus does not regard current prices as sustainable. We attribute collective bearishness to inattentiveness, lack of understanding, intellectual laziness, disinterest, and incompatibility with the groupthink underpinning mainstream financial market positioning.
For the sake of brevity, we will not elaborate here on the multiple forces (some admittedly speculative) that could power the further gains in monetary metals that we expect. Extensive commentary on our rationale can be found in our previous commentaries, as well as from many other observers.
Western Investors Continue to Ignore Gold
For now, it is enough to note that gold’s 78.12% five-year advance has occurred with almost no participation from U.S. and European investors. Negative investment flows have persisted in both ETFs backed by physical gold and mining stocks, as shown in Figures 4 and 5.
Figure 4. SPDR Gold Shares ETF (GLD) Change in Holdings by Year (2005-2024)
Source: Meridian Macro Research. Data as of 6/30/2024.
Figure 5. Current Shares Outstanding for GDX (2019-2024)
Source: Bloomberg. Data as of 9/30/2024.
Figure 6 shows that the positioning of financial advisors to precious metals is at a five-year low.
Figure 6. Advisors Hold Little Gold (2017-2024)
Source: BofA Global Research. Data as of 2/26/2024.
When Western capital market investors decide to reallocate a small portion of their capital to gold, and there are multiple reasons why they might, the metal’s price will likely move higher. The impact on mining company shares, which collectively have a market capitalization approximately equal to Home Depot or Costco’s, would, in our opinion, substantially exceed the percentage increase in the metal’s price.
It is worth noting that following the launch of GLD (SPDR Gold Shares ETF)3 in 2004, inflows of approximately 38 million ounces were sufficient to help fuel a 300% rise in the gold price from slightly less than $600 to $1,900 in August 2011, a seven-year span. Since 2010, the quantity of money (M2)4 has increased 248% while the quantity of gold has increased (through mine output) only 22.2%. The quantity of U.S. dollars that could be exchanged for gold has increased 10x relative to the quantity of physical gold over the past 15 years.
Measured against the ratio of U.S. dollars to gold creation, the five-year 70% increase in the U.S. dollar gold price seems both sustainable and probably inadequate. Liquidity created by the Fed’s decade-long policy of ultra-low interest rates and QE (quantitative easing) initially found its way into overvalued equities and assorted other financial assets. A small leakage from those positions would represent enormous buying power relative to available metal.
Early-Stage Bull Market for Gold
The current bull market for gold is embryonic, in our opinion. The classic hallmarks of an early-stage bull market include widespread skepticism and general underpositioning. The inevitable transition of investor psychology from pessimism to exuberance takes several years. Long-term investors in mining stocks are beginning to experience a small amount of daylight with the year-to-date rally.
The temptation to cash in gains that are paltry relative to years of unproductive returns is difficult to resist. We advise further patience. In our view, valuations remain exceptionally attractive assuming only the continuation of spot pricing for precious metals. Inflows into the tiny precious metals mining universe have barely started. The upside potential that likely lies ahead may be well worth any additional wait.
View Appendix A: Gold Price Forecasts by Company
Original Source: https://www.sprott.com/insights/sprott-gold-report-the-stage-is-set/
North Vancouver, British Columbia–(Newsfile Corp. – October 1, 2024) – Lion One Metals Limited (TSXV: LIO) (OTCQX: LOMLF) (“Lion One” or the “Company”) is pleased to report significant new high-grade gold results from near-mine exploration and infill drilling at the West Zone target west of to the Tuvatu Gold Mine in Fiji. The company is also pleased to report record preliminary Q1 FY2025 gold production at Tuvatu.
Highlights of West Zone exploration and infill drilling:
- 105.20 g/t Au over 2.1 m (including 248.35 g/t Au over 0.3 m) (TUDDH-636, from 67.8 m depth)
- 70.07 g/t Au over 2.1 m (including 73.43 g/t Au over 1.2 m) (TUDDH-647, from 144.5 m depth)
- 102.38 g/t Au over 1.2 m (TUDDH-645, from 97.7 m depth)
- 19.82 g/t Au over 5.1 m (including 68.88 g/t Au over 0.9 m) (TUDDH-636, from 34.5 m depth)
- 146.61 g/t Au over 0.6 m (including 289.85 g/t Au over 0.3 m) (TUDDH-645, from 164.3 m depth)
- 24.16 g/t Au over 3.3 m (including 96.78 g/t Au over 0.3 m) (TUDDH-652, from 173.5 m depth)
- 49.72 g/t Au over 0.8 m (including 78.61 g/t Au over 0.4 m) (TUDDH-755, from 52.94 m depth)
- 42.44 g/t Au over 1.8 m (including 61.66 g/t Au over 0.6 m) (TUDDH-636, from 60.6 m depth)
- 7.68 g/t Au over 4.2 m (including 28.63 g/t Au over 0.3 m) (TUDDH-645, from 142.4 m depth)
- 14.86 g/t Au over 2.0 m (TUDDH-636, from 228.8 m depth)
*All drill intersects are downhole lengths, 3.0 g/t cutoff. See Table 1 for additional data
Highlights of quarterly gold production (preliminary results):
- 3,680 oz of gold recovered from July-September 2024
- 31,390 tonnes milled from July-September 2024
- Record quarterly gold production (previous record set in the prior quarter, April-June 2024)
- July production impacted by scheduled 9-day mill maintenance shutdown
- August production impacted by mining equipment breakdown
Quarterly Production Results
Lion One Metals will produce approximately 3,680 oz of gold during the three-month period ending September 30th, 2024. This is a new quarterly production record, beating the previous production record of 3,551 oz of gold produced in the prior three-month period ending June 30th, 2024. Production during the period was impacted by a scheduled 9-day mill maintenance shutdown in July, as well as by mining equipment breakdowns in August. The total tonnes processed during the three-month period ending September 30th was 31,390 tonnes, which is comparable to the prior three-month period of 32,100 tonnes processed.
The mill shutdown in July was conducted to maintain and upgrade the Tuvatu processing plant facilities, and will have a significant impact on processing efficiency and cost savings moving forward. Major upgrades completed during the shutdown include re-lining the primary ball mill with rubber liners, replacing the bowl/mantle for the cone crusher, replacing the #1 conveyor belt, replacing the grinding and gravity circuit piping with flexible slurry hoses, and installing new detox feed pumps and feed splitter box for the detox circuit.
Re-lining the ball mill with rubber liners is a significant upgrade as the lighter weight rubber liners will reduce power draw by the primary ball mill and will enable a higher ball charge and finer primary grind, thereby improving mill recovery and efficiency. Wear life on the rubber liners is also expected to double from 6 months to 1 year thereby reducing long-term maintenance costs. The grinding and gravity circuit piping replacements will improve mill availability and will further reduce maintenance costs as the use of flexible slurry hoses will result in significantly less downtime for pipe repairs than with the previous steel piping. Overall, the upgrades completed during the July mill shutdown have helped to increase mill availability from 89% in the three-month period ending June 30th, to 93% in the three-month period ending September 30th. The upgrades have also helped to increase average daily mill throughput per operating day (excluding the planned mill shutdown) from 353 TPD in the three-month period ending June 30th to 371 TPD in the three-month period ending September 30th. In addition to the processing plant improvements, operational costs from the filtered tailings haulage have also been reduced by bringing the haulage operation in-house with three new trucks acquired during the quarter, which will lead to significant cost savings from operations.
Gold production during the quarter was also impacted by mine equipment availability in August. Two underground loaders were down for repairs simultaneously. Having both loaders down for repairs significantly impacted mining operations as production material could not be extracted from the mine. Stockpiled low-grade development material was therefore fed through the mill during the interim period while the loaders were repaired, resulting in decreased production in August. A new underground loader from Australia was purchased and arrived on site in September resulting in improved equipment availability and enhanced redundancy.
Figure 1. Tuvatu Monthly Gold Production. Gold recovery and production has increased steadily at Tuvatu as mining and processing activities have ramped up during the pilot plant phase of operations. Production was reduced in July due to a scheduled 9-day mill maintenance shut down and was hampered in August due to mining equipment breakdown.
To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/2178/225208_14918e48b4c2281b_001full.jpg
West Zone Drilling
The West Zone drilling consists of two separate programs: a deep exploratory drill program targeting a feeder zone at depth below the West Zone, and a shallow infill drill program targeting near-surface mineralization for inclusion in the Tuvatu mine plan (Figure 2). The deep exploration drill holes are the first holes ever designed to test the depth extension of mineralization beneath the West Zone. This program consisted of five holes and all five holes intersected high grade gold, indicating strong continuation of mineralization at depth in the West Zone and warranting further exploration. The shallow West Zone infill drill program is ongoing. The results from the first two drill holes of the program are reported here, both of which intersected visible gold near surface.
Figure 2. Location of the West Zone drilling. Left image: Plan view image showing the West Zone target area in relation to Tuvatu, with underground developments shown in red and mineralized lodes in grey. Right image: view of the West Zone lodes and drilling looking east, with underground developments at Tuvatu shown in pale red in the background.
To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/2178/225208_14918e48b4c2281b_002full.jpg
Table 1. Highlights of composited drill results in the West Zone area. Composites are calculated using a 3 g/t Au cutoff with maximum internal dilution intervals of 1 m at <3 g/t Au. For full results see Table 3 in the appendix.
| Hole ID | From (m) | To (m) | Width (m) | Au (g/t) | |
| TUDDH-636 | 67.8 | 69.9 | 2.1 | 105.20 | |
| including | 67.8 | 68.4 | 0.6 | 72.55 | |
| and | 68.4 | 68.7 | 0.3 | 126.37 | |
| and | 68.7 | 69.0 | 0.3 | 248.35 | |
| and | 69.0 | 69.6 | 0.6 | 73.82 | |
| and | 69.6 | 69.9 | 0.3 | 68.96 | |
| TUDDH-647 | 144.5 | 146.6 | 2.1 | 70.07 | |
| including | 144.5 | 145.7 | 1.2 | 73.43 | |
| and | 145.7 | 146.6 | 0.9 | 65.58 | |
| TUDDH-645 | 97.7 | 98.9 | 1.2 | 102.38 | |
| TUDDH-636 | 34.5 | 39.6 | 5.1 | 19.82 | |
| including | 37.8 | 39.6 | 1.8 | 39.86 | |
| which includes | 38.7 | 39.6 | 0.9 | 68.88 | |
| TUDDH-645 | 164.3 | 164.9 | 0.6 | 146.61 | |
| including | 164.6 | 164.9 | 0.3 | 289.85 | |
| TUDDH-652 | 173.5 | 176.8 | 3.3 | 24.16 | |
| including | 173.5 | 175.3 | 1.8 | 37.08 | |
| which includes | 173.8 | 174.1 | 0.3 | 96.78 | |
| and also including | 176.2 | 176.5 | 0.3 | 33.37 | |
| TUDDH-636 | 60.6 | 62.4 | 1.8 | 42.44 | |
| including | 60.6 | 61.8 | 1.2 | 55.81 | |
| which includes | 60.6 | 61.2 | 0.6 | 61.66 | |
| and | 61.2 | 61.8 | 0.6 | 49.96 | |
| TUDDH-755 | 52.9 | 53.7 | 0.8 | 49.72 | |
| including | 52.9 | 53.3 | 0.4 | 78.61 | |
| TUDDH-645 | 142.4 | 146.6 | 4.2 | 7.68 | |
| including | 142.4 | 143.0 | 0.6 | 13.02 | |
| and | 144.2 | 144.8 | 0.6 | 19.76 | |
| TUDDH-636 | 228.8 | 230.8 | 2.0 | 14.86 | |
| TUDDH-642 | 179.1 | 182.1 | 3.0 | 8.23 | |
| TUDDH-642 | 172.5 | 175.5 | 3.0 | 6.44 | |
| including | 174.6 | 175.5 | 0.9 | 15.55 | |
| TUDDH-647 | 137.6 | 140.9 | 3.3 | 5.49 | |
| including | 140.0 | 140.9 | 0.9 | 12.89 | |
| TUDDH-753 | 57.6 | 58.3 | 0.7 | 25.22 | |
| including | 57.6 | 57.9 | 0.4 | 43.58 |
*All drill intersects are downhole lengths
The West Zone is located approximately 300 m to the west of the main Tuvatu deposit. It is modelled as a series of mainly east-west oriented lodes dipping steeply to the south. High grade gold has been sampled at surface in the West Zone and the area is coincident with a steeply dipping CSAMT gradient, indicative of a potential deep feeder structure in the area. Given the steeply dipping nature of the mineralized lodes both at Tuvatu and at the West Zone, and given the horizontal distance between the two systems, it is unlikely that they are fed by the same feeder zone. It is therefore hypothesized that there is a second feeder zone located at depth below the West Zone, which would be separate and distinct from the very high-grade Zone 500 feeder zone at Tuvatu.
The deep drillholes reported in this news release are the first drillholes ever designed to test for feeder structures beneath the West Zone. Five drillholes were completed as part of this drill program (TUDDH-636, TUDDH-642, TUDDH-645, TUDDH-647, and TUDDH-652) and all five of these drillholes intersected high grade gold, including the headline intersections of 105.20 g/t Au over 2.1 m, 70.07 g/t Au over 2.1 m and 102.38 g/t Au over 1.2 m. These results indicate a strong potential for high-grade mineralization to continue further at depth below the West Zone and warrants additional exploration at depth. The deepest high-grade gold intersection returned in these first five drill holes was at almost 500 m depth downhole, with TUDDH-636 returning gold grades of 5.68 g/t and 7.00 g/t over 30 cm at 487.1 m and 482.0 m depth downhole respectively.
Structural analysis of oriented core and mapping of surface trenches in the West Zone has revealed the potential for north-south oriented mineralized structures as well as east-west oriented structures in the area. Historical drilling in the West Zone, however, has typically been oriented north-south to specifically target east-west oriented structures. This historical drilling is therefore likely to have missed any north-south oriented lodes as they would be oriented parallel to the drill direction. The infill drill program currently ongoing at the West Zone has been designed to intersect both the east-west and north-south oriented structures in this area by drilling in an oblique, northwest-southeast orientation. The first two holes of this drill program (TUDDH-753 and TUDDH-755) are reported in this news release. Both holes returned visible gold near surface (Figure 4).
Figure 3. West Zone drilling with high-grade intersects highlighted, 3.0 g/t gold cutoff. View is to the East. High to very high-grade gold is intersected near surface in the West Zone.
To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/2178/225208_14918e48b4c2281b_003full.jpg
Figure 4. Visible gold from West Zone near surface drilling. Visible gold observed within narrow chalcedonic quartz roscoelite vein (TUDDH-755, from 52.9 m to 53.3 m). Left and right images are close-up views of visible gold seen in the center image.
To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/2178/225208_14918e48b4c2281b_004full.jpg
The West Zone is not included in the current Tuvatu mine plan. However, given the high-grade mineralization present at surface in the West Zone as well as the close proximity of the West Zone to the Tuvatu processing plant, the West Zone is an ideal target for near-mine expansion. The West Zone is located just south of the mine office building at Tuvatu (Figure 5). To bring the West Zone into the current mine plan a second portal could be opened to provide direct access to the area, or an underground access drive could be developed from Tuvatu. The ongoing West Zone infill drill program is designed to help inform this decision as well as to increase confidence in the near-surface mineralization present in the West Zone.
Figure 5. Approximate location of the West Zone target area in relation to the Tuvatu processing plant and infrastructure.
To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/2178/225208_14918e48b4c2281b_005full.jpg
Competent Persons Statement
The information in this report that relates to mineral exploration at the Tuvatu Gold Project is based on information compiled by the Lion One team and reviewed by Melvyn Levrel, who is the company’s Senior Geologist. Mr Levrel is a Member of the Australian Institute of Geoscientists and has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration, and to the activity being undertaken, to qualify as a Competent Person as defined in the 2012 edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’ (JORC code). Mr Levrel consents to the inclusion in this report of the matters based on the information in the form and context in which it appears.
Lion One Laboratories / QAQC
Lion One adheres to rigorous QAQC procedures above and beyond basic regulatory guidelines in conducting its drilling, sampling, testing, and analyses. The Company operates its own geochemical assay laboratory and its own fleet of diamond drill rigs using PQ, HQ and NQ sized drill rods.
Diamond drill core samples are logged and split by Lion One personnel on site and delivered to the Lion One Laboratory for preparation and analysis. All samples are pulverized at the Lion One lab to 85% passing through 75 microns and gold analysis is carried out using fire assay with an AA finish. Samples that return grades greater than 10.00 g/t Au are re-analyzed by gravimetric method, which is considered more accurate for very high-grade samples.
Duplicates of 5% of samples with grades above 0.5 g/t Au are delivered to ALS Global Laboratories in Australia for check assay determinations using the same methods (Au-AA26 and Au-GRA22 where applicable). ALS also analyses 33 pathfinder elements by HF-HNO3-HClO4 acid digestion, HCl leach and ICP-AES (method ME-ICP61). The Lion One lab can test a range of up to 71 elements through Inductively Coupled Plasma Optical Emission Spectrometry (ICP-OES), but currently focuses on a suite of 23 important pathfinder elements with an aqua regia digest and ICP-OES finish.
About Lion One Metals Limited
Lion One Metals is an emerging Canadian gold producer headquartered in North Vancouver BC, with new operations established in late 2023 at its 100% owned Tuvatu Alkaline Gold Project in Fiji. The Tuvatu project comprises the high-grade Tuvatu Alkaline Gold Deposit, the Underground Gold Mine, the Pilot Plant, and the Assay Lab. The Company also has an extensive exploration license covering the entire Navilawa Caldera, which is host to multiple mineralized zones and highly prospective exploration targets.
On behalf of the Board of Directors,
Walter Berukoff, Chairman & CEO
Contact Information
Email: info@liononemetals.com
Phone: 1-855-805-1250 (toll free North America)
Website: www.liononemetals.com
Neither the TSX-V nor its Regulation Service Provider accepts responsibility or the adequacy or accuracy of this release
This press release may contain statements that may be deemed to be “forward-looking statements” within the meaning of applicable Canadian securities legislation. All statements, other than statements of historical fact, included herein are forward-looking information. Generally, forward-looking information may be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “proposed”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases, or by the use of words or phrases which state that certain actions, events or results may, could, would, or might occur or be achieved. This forward-looking information reflects Lion One Metals Limited’s current beliefs and is based on information currently available to Lion One Metals Limited and on assumptions Lion One Metals Limited believes are reasonable. These assumptions include, but are not limited to, the actual results of exploration projects being equivalent to or better than estimated results in technical reports, assessment reports, and other geological reports or prior exploration results. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance, or achievements of Lion One Metals Limited or its subsidiaries to be materially different from those expressed or implied by such forward-looking information. Such risks and other factors may include, but are not limited to: the stage development of Lion One Metals Limited, general business, economic, competitive, political and social uncertainties; the actual results of current research and development or operational activities; competition; uncertainty as to patent applications and intellectual property rights; product liability and lack of insurance; delay or failure to receive board or regulatory approvals; changes in legislation, including environmental legislation, affecting mining, timing and availability of external financing on acceptable terms; not realizing on the potential benefits of technology; conclusions of economic evaluations; and lack of qualified, skilled labor or loss of key individuals. Although Lion One Metals Limited has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated, or intended. Accordingly, readers should not place undue reliance on forward-looking information. Lion One Metals Limited does not undertake to update any forward-looking information, except in accordance with applicable securities laws.
Appendix 1: Full Drill Results and Collar Information
Table 2. Collar coordinates for drillholes reported in this release. Coordinates are in Fiji map grid.
| Hole ID | Easting | Northing | Elevation | Azimuth | Dip | Depth |
| TUDDH-636 | 1875867 | 3920760 | 175 | 160.0 | -56.8 | 515.8 |
| TUDDH-642 | 1875885 | 3920756 | 175 | 186.4 | -76.4 | 417.0 |
| TUDDH-645 | 1875917 | 3920685 | 203 | 325.9 | -59.5 | 311.9 |
| TUDDH-647 | 1875917 | 3920685 | 203 | 326.0 | -72.2 | 458.3 |
| TUDDH-652 | 1875918 | 3920685 | 203 | 325.0 | -79.1 | 783.0 |
| TUDDH-753 | 1875838 | 3920802 | 141 | 125.8 | -19.6 | 184.9 |
| TUDDH-755 | 1875838 | 3920802 | 141 | 131.8 | -33.4 | 220.4 |
Table 3. Composite results from drillholes reported in this news release (composite grade >3.0 g/t Au)
| Hole ID | From (m) | To (m) | Width (m) | Au (g/t) | |
| TUDDH-636 | 26.7 | 27.3 | 0.6 | 6.28 | |
| TUDDH-636 | 34.5 | 39.6 | 5.1 | 19.82 | |
| including | 34.5 | 35.1 | 0.6 | 3.657 | |
| and | 35.1 | 35.7 | 0.6 | 15.96 | |
| and | 35.7 | 36.3 | 0.6 | 18.29 | |
| and | 36.3 | 36.9 | 0.6 | 10.99 | |
| and | 36.9 | 37.8 | 0.9 | 0.01 | |
| and | 37.8 | 38.7 | 0.9 | 10.84 | |
| and | 38.7 | 39.6 | 0.9 | 68.88 | |
| TUDDH-636 | 43.8 | 44.7 | 0.9 | 11.22 | |
| including | 43.8 | 44.4 | 0.6 | 13.59 | |
| and | 44.4 | 44.7 | 0.3 | 6.47 | |
| TUDDH-636 | 47.1 | 47.7 | 0.6 | 12.23 | |
| TUDDH-636 | 60.6 | 62.4 | 1.8 | 42.44 | |
| including | 60.6 | 61.2 | 0.6 | 61.66 | |
| and | 61.2 | 61.8 | 0.6 | 49.96 | |
| and | 61.8 | 62.4 | 0.6 | 15.69 | |
| TUDDH-636 | 67.8 | 69.9 | 2.1 | 105.20 | |
| including | 67.8 | 68.4 | 0.6 | 72.55 | |
| and | 68.4 | 68.7 | 0.3 | 126.37 | |
| and | 68.7 | 69.0 | 0.3 | 248.35 | |
| and | 69.0 | 69.6 | 0.6 | 73.82 | |
| and | 69.6 | 69.9 | 0.3 | 68.96 | |
| TUDDH-636 | 228.8 | 230.8 | 2.0 | 14.86 | |
| TUDDH-636 | 334.2 | 335.1 | 0.9 | 4.86 | |
| TUDDH-636 | 429.8 | 430.1 | 0.3 | 3.06 | |
| TUDDH-636 | 472.1 | 473.0 | 0.9 | 3.55 | |
| TUDDH-636 | 482.0 | 482.3 | 0.3 | 7.00 | |
| TUDDH-636 | 487.1 | 487.4 | 0.3 | 5.68 | |
| TUDDH-642 | 117.6 | 117.9 | 0.3 | 8.10 | |
| TUDDH-642 | 123.0 | 124.5 | 1.5 | 10.23 | |
| including | 123.0 | 123.6 | 0.6 | 11.96 | |
| and | 123.6 | 124.5 | 0.9 | 9.08 | |
| TUDDH-642 | 149.4 | 150.0 | 0.6 | 5.28 | |
| TUDDH-642 | 172.5 | 175.5 | 3.0 | 6.44 | |
| including | 172.5 | 172.8 | 0.3 | 5.39 | |
| and | 172.8 | 173.7 | 0.9 | 4.00 | |
| and | 173.7 | 174.6 | 0.9 | 0.12 | |
| and | 174.6 | 175.5 | 0.9 | 15.55 | |
| TUDDH-642 | 179.1 | 182.1 | 3.0 | 8.23 | |
| including | 179.1 | 180.0 | 0.9 | 8.68 | |
| and | 180.0 | 180.3 | 0.3 | 12.64 | |
| and | 180.3 | 180.6 | 0.3 | 10.99 | |
| and | 180.6 | 181.2 | 0.6 | 8.91 | |
| and | 181.2 | 182.1 | 0.9 | 4.95 | |
| TUDDH-642 | 229.2 | 229.5 | 0.3 | 4.21 | |
| TUDDH-642 | 234.9 | 235.5 | 0.6 | 5.82 | |
| including | 234.9 | 235.2 | 0.3 | 7.02 | |
| and | 235.2 | 235.5 | 0.3 | 4.62 | |
| TUDDH-642 | 241.8 | 243.9 | 2.1 | 8.10 | |
| including | 241.8 | 242.4 | 0.6 | 11.23 | |
| and | 242.4 | 243.3 | 0.9 | 0.93 | |
| and | 243.3 | 243.6 | 0.3 | 10.55 | |
| and | 243.6 | 243.9 | 0.3 | 20.86 | |
| TUDDH-642 | 296.3 | 297.2 | 0.9 | 3.52 | |
| TUDDH-642 | 323.0 | 323.6 | 0.6 | 7.35 | |
| TUDDH-645 | 86.0 | 86.3 | 0.3 | 4.91 | |
| TUDDH-645 | 97.7 | 98.9 | 1.2 | 102.38 | |
| TUDDH-645 | 142.4 | 146.6 | 4.2 | 7.68 | |
| including | 142.4 | 143.0 | 0.6 | 13.02 | |
| and | 143.0 | 143.3 | 0.3 | 9.81 | |
| and | 143.3 | 143.6 | 0.3 | 5.80 | |
| and | 143.6 | 143.9 | 0.3 | -0.01 | |
| and | 143.9 | 144.2 | 0.3 | 8.14 | |
| and | 144.2 | 144.5 | 0.3 | 10.88 | |
| and | 144.5 | 144.8 | 0.3 | 28.63 | |
| and | 144.8 | 145.4 | 0.6 | 1.30 | |
| and | 145.4 | 146.0 | 0.6 | 3.97 | |
| and | 146.0 | 146.6 | 0.6 | 3.85 | |
| TUDDH-645 | 152.9 | 154.1 | 1.2 | 4.77 | |
| including | 152.9 | 153.2 | 0.3 | 8.38 | |
| and | 153.2 | 153.5 | 0.3 | 1.51 | |
| and | 153.5 | 154.1 | 0.6 | 4.60 | |
| TUDDH-645 | 155.9 | 156.5 | 0.6 | 7.88 | |
| TUDDH-645 | 161.6 | 162.2 | 0.6 | 9.46 | |
| TUDDH-645 | 164.3 | 164.9 | 0.6 | 146.61 | |
| including | 164.3 | 164.6 | 0.3 | 3.36 | |
| and | 164.6 | 164.9 | 0.3 | 289.85 | |
| TUDDH-647 | 137.6 | 140.9 | 3.3 | 5.49 | |
| including | 137.6 | 138.2 | 0.6 | 5.39 | |
| and | 138.2 | 139.1 | 0.9 | <0.01 | |
| and | 139.1 | 140.0 | 0.9 | 3.66 | |
| and | 140.0 | 140.9 | 0.9 | 12.89 | |
| TUDDH-647 | 144.5 | 146.6 | 2.1 | 70.07 | |
| including | 144.5 | 145.7 | 1.2 | 73.43 | |
| and | 145.7 | 146.6 | 0.9 | 65.58 | |
| TUDDH-647 | 196.7 | 197.6 | 0.9 | 5.13 | |
| including | 196.7 | 197.0 | 0.3 | 6.46 | |
| and | 197.0 | 197.3 | 0.3 | 4.85 | |
| and | 197.3 | 197.6 | 0.3 | 4.07 | |
| TUDDH-652 | 17.6 | 17.9 | 0.3 | 4.96 | |
| TUDDH-652 | 173.5 | 176.8 | 3.3 | 24.16 | |
| including | 173.5 | 173.8 | 0.3 | 29.86 | |
| and | 173.8 | 174.1 | 0.3 | 96.78 | |
| and | 174.1 | 174.4 | 0.3 | 20.89 | |
| and | 174.4 | 174.7 | 0.3 | 38.19 | |
| and | 174.7 | 175.0 | 0.3 | 15.99 | |
| and | 175.0 | 175.3 | 0.3 | 20.75 | |
| and | 175.3 | 175.6 | 0.3 | 0.40 | |
| and | 175.6 | 175.9 | 0.3 | 1.80 | |
| and | 175.9 | 176.2 | 0.3 | 2.28 | |
| and | 176.2 | 176.5 | 0.3 | 33.37 | |
| and | 176.5 | 176.8 | 0.3 | 5.41 | |
| TUDDH-652 | 184.3 | 184.9 | 0.6 | 15.26 | |
| TUDDH-652 | 193.3 | 193.9 | 0.6 | 7.71 | |
| TUDDH-652 | 195.7 | 196.3 | 0.6 | 5.29 | |
| including | 195.7 | 196.0 | 0.3 | 5.03 | |
| and | 196.0 | 196.3 | 0.3 | 5.55 | |
| TUDDH-652 | 205.0 | 205.6 | 0.6 | 12.65 | |
| including | 205.0 | 205.3 | 0.3 | 9.33 | |
| and | 205.3 | 205.6 | 0.3 | 15.96 | |
| TUDDH-652 | 215.2 | 217.0 | 1.8 | 6.32 | |
| including | 215.2 | 215.5 | 0.3 | 5.45 | |
| and | 215.5 | 215.8 | 0.3 | 1.34 | |
| and | 215.8 | 216.1 | 0.3 | 4.56 | |
| and | 216.1 | 216.4 | 0.3 | 7.43 | |
| and | 216.4 | 216.7 | 0.3 | 3.30 | |
| and | 216.7 | 217.0 | 0.3 | 15.82 | |
| TUDDH-652 | 220.3 | 220.6 | 0.3 | 26.72 | |
| TUDDH-652 | 223.3 | 223.6 | 0.3 | 3.56 | |
| TUDDH-652 | 224.5 | 224.8 | 0.3 | 4.13 | |
| TUDDH-652 | 430.2 | 431.4 | 1.2 | 3.90 | |
| including | 430.2 | 430.8 | 0.6 | 3.99 | |
| and | 430.8 | 431.4 | 0.6 | 3.80 | |
| TUDDH-753 | 57.6 | 58.3 | 0.7 | 25.22 | |
| including | 57.6 | 57.9 | 0.4 | 43.58 | |
| and | 57.9 | 58.3 | 0.4 | 6.86 | |
| TUDDH-753 | 60.5 | 60.9 | 0.5 | 7.94 | |
| TUDDH-753 | 64.4 | 65.2 | 0.8 | 4.40 | |
| including | 64.4 | 64.7 | 0.3 | 5.58 | |
| and | 64.7 | 65.2 | 0.5 | 3.69 | |
| TUDDH-755 | 52.9 | 53.7 | 0.8 | 49.72 | |
| including | 52.9 | 53.3 | 0.4 | 78.61 | |
| and | 53.3 | 53.7 | 0.4 | 21.56 | |
| TUDDH-755 | 64.7 | 65.0 | 0.3 | 6.20 | |
| TUDDH-755 | 68.2 | 68.5 | 0.3 | 2.00 | |
| TUDDH-755 | 153.6 | 153.9 | 0.3 | 2.19 |
*All drill intersects are downhole lengths
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/225208
Vancouver, British Columbia–(Newsfile Corp. – September 27, 2024) – Dolly Varden Silver Corporation (TSXV: DV) (OTCQX: DOLLF) (the “Company” or “Dolly Varden“) is pleased to announce the closing of the second and final tranche of its previously announced bought deal financing (the “Offering“) for additional gross proceeds of $4,500,000 from the issuance of 3,600,000 FT Shares (as defined below). The aggregate gross proceeds to the Company from the completion of the Offering (including the gross proceeds raised from the completion of the first tranche of the Offering on September 4, 2024) is $32,200,000, from the issuance of:
- 11,500,000 common shares of the Company (“Common Shares“) at a price of $1.00 per Common Share for gross proceeds of $11,500,000, issued under a prospectus supplement dated August 21, 2024 to the Company’s final short form base shelf prospectus dated April 25, 2023 (“Prospectus Offering“), including the full exercise of the over-allotment option under the Prospectus Offering; and
- 16,560,000 Common Shares that qualify as “flow-through shares” within the meaning of subsection 66(15) of the Income Tax Act (Canada) (the “Tax Act“) (each, a “FT Share“) at a price of $1.25 per FT Share for gross proceeds of $20,700,000, on a bought deal private placement basis (“Private Placement Offering“), including the full exercise of the over-allotment option under the Private Placement Offering.
The Offering was completed on a bought deal basis pursuant to an underwriting agreement dated August 21, 2024 (the “Underwriting Agreement“) between the Company and a syndicate of underwriters co-led by Research Capital Corporation, as co-lead underwriter and sole bookrunner, and Haywood Securities Inc., as co-lead underwriter, and including Raymond James Ltd. (collectively, the “Underwriters“). Eventus Capital Corp. is a special advisor to the Company.
The net proceeds from the sale of Common Shares will be used for working capital and general corporate purposes. The gross proceeds from the sale of FT Shares will be used for further exploration, mineral resource expansion and drilling in the combined Kitsault Valley project, located in northwestern British Columbia, Canada, or any other eligible Canadian property of the Company, as well as for working capital as permitted, as Canadian Exploration Expenses as defined in paragraph (f) of the definition of “Canadian exploration expense” in subsection 66.1(6) of the Tax Act and “flow through mining expenditures” as defined in subsection 127(9) of the Tax Act that will qualify as “flow-through mining expenditures” and “BC flow-through mining expenditures” as defined in subsection 4.721(1) of the Income Tax Act (British Columbia), which will be incurred on or before December 31, 2025 and renounced with an effective date no later than December 31, 2024 to the initial purchasers of FT Shares.
The FT Shares issued pursuant to the closing of the second tranche of the Private Placement Offering are subject to a hold period in Canada expiring on January 28, 2025. The Common Shares issued pursuant to the Prospectus Offering are not subject to a statutory hold period.
In connection with the closing of the second tranche of the Offering, the Underwriters received a cash fee equal to $225,000, representing 5.0% of the gross proceeds of the second tranche of the Private Placement Offering.
This press release is not an offer to sell or the solicitation of an offer to buy the securities in the United States or in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to qualification or registration under the securities laws of such jurisdiction. The securities being offered have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and such securities may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons absent registration or an applicable exemption from U.S. registration requirements and applicable U.S. state securities laws.
About Dolly Varden Silver Corporation
Dolly Varden Silver Corporation is a mineral exploration company focused on advancing its 100% held Kitsault Valley Project (which combines the Dolly Varden Project and the Homestake Ridge Project) located in the Golden Triangle of British Columbia, Canada, 25kms by road to tide water. The 163 sq. km. project hosts the high-grade silver and gold resources of Dolly Varden and Homestake Ridge along with the past producing Dolly Varden and Torbrit silver mines. It is considered to be prospective for hosting further precious metal deposits, being on the same structural and stratigraphic belts that host numerous other, high-grade deposits, such as Eskay Creek and Brucejack. The Kitsault Valley Project also contains the Big Bulk property which is prospective for porphyry and skarn style copper and gold mineralization, similar to other such deposits in the region (Red Mountain, KSM, Red Chris).
Forward-Looking Statements
This news release contains statements that constitute “forward-looking statements.” Such forward looking statements involve known and unknown risks, uncertainties and other factors that may cause the Company’s actual results, performance or achievements, or developments to differ materially from the anticipated results, performance or achievements expressed or implied by such 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. These forward‐looking statements or information relate to, among other things the expected use of proceeds from the issuance of the Common Shares and the FT Shares, and other statements that are not historical facts. By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors and risks include, among others: the Company may require additional financing from time to time in order to continue its operations which may not be available when needed or on acceptable terms and conditions acceptable; compliance with extensive government regulation; domestic and foreign laws and regulations could adversely affect the Company’s business and results of operations; and the stock markets have experienced volatility that often has been unrelated to the performance of companies and these fluctuations may adversely affect the price of the Company’s securities, regardless of its operating performance.
The forward-looking information contained in this news release represents the expectations of the Company as of the date of this news release and, accordingly, is subject to change after such date. Readers should not place undue importance on forward-looking information and should not rely upon this information as of any other date. 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.
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 news release.
For further information: Shawn Khunkhun, CEO & Director, 1-604-609-5137, www.dollyvardensilver.com.
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Vancouver, British Columbia–(Newsfile Corp. – September 23, 2024) – Goldshore Resources Inc. (TSXV: GSHR) (OTCQB: GSHRF) (FSE: 8X00) (“Goldshore” or the “Company“) is pleased to announce assay results from the 2024 field programs that concentrated on extending mineralization along the Moss trend, and evaluating the exploration potential along the Kawa trend through rock chip and channel sampling and through assaying unsampled historical drill core (Figures 1 & 2). The Company plans to conduct systematic top of bedrock sampling and ground based induced polarization geophysical surveys over these prospective shear zones in the future to develop robust drill targets.
Sampling has focused on largely undercover areas, yielding favorable results including the following:
- Discovery of additional high grade mineralized areas north of the Moss Deposit at the Superion and West Span prospects including grab assays of 15.4 g/t Au and 10.5 g/t Au.
- Discovery of a new mineralized shear outside of the drilling envelope close to the Southwest Zone of the Moss Deposit returning a surface assay of 12.3 g/t Au.
- Expanded mineralized intercepts at the Moss Nose and Kawa prospects through assaying of unsampled historical drill core returning individual values as high as 7.88 g/t Au over 0.65m in ML-02-001.
- Additional mineralized outcrops discovered at the Moss Nose prospects with grab samples returning up to 3.39 g/t Au.
- Identified mineralization at surface over 4.5km along the Kawa trend with channel samples at the Deaty prospect returning 0.92 g/t over 2.85m.
Michael Henrichsen, CEO of Goldshore commented, “The results from the rock chip and channel sampling programs in conjunction with assaying unsampled historical drill core has demonstrated the potential within the Moss Deposit area. These results re-enforce not only our belief of the ability to extend the Moss Deposit but also the discovery potential in the area. The Company’s technical team is currently designing a program to efficiently evaluate the 23 km of prospective structural corridors in the Moss Deposit area where we believe there is excellent potential for a new discovery.”
Review of regional historical drill core:
Goldshore’s Moss Nose and Kawa trend targets were initially drilled in the early 2000s by then project holder Moss Lake Gold Mines (“MLGM”). Goldshore has relogged the MLGM core and noted strong similarities between the diorite complex which hosts the Moss Deposit and the diorites present at both the Moss Nose and Kawa targets. Goldshore assayed 477 samples to fill in significant gaps in the original MLGM sampling to better define the widths and grade of the historical drilling. Assay results returned elevated Au values which expand the known mineralized zones at both targets with values as high as 7.88 g/t Au over 0.65m in ML-02-001 underscoring the difficulty of visually identifying mineralization (Figure 1). Trace element values within the diorites of the Moss Nose and Kawa trends are very similar to those of the Moss Deposit demonstrating the prospectivity of the host rocks at these target areas. Updated significant intercepts resulting from the assaying of unsampled historical drill core are presented in Table 1 and demonstrate intervals that could be on the margins of higher-grade zones as observed at the margins of the Moss Deposit.
Figure 1: Select assays from infill sampling of historical core
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Table 1: Updated significant intercepts from the assaying of unsampled historical drill core
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Results of 2023 field program:
Goldshore’s 2023 field program focused on advancing targets within the Moss Deposit area. Gold mineralization styles discovered during this program included sulphidised iron formations as well as “Moss-like” shear-controlled sulphides. Assay results received from the 2024 grab and channel samples have revealed expanded surface gold mineralization at several targets including West Span, Southwest Kawa, Deaty, Moss Nose and a new near-deposit mineralized shear near the Moss Southwest Zone (Figure 2). Collectively these results demonstrate the potential within the Moss Deposit area. In particular, the high-grade grab samples of 15.4g/t Au and 10.5g/t Au from the West Span target demonstrate the potential of extending mineralization to the northeast of the Moss Deposit. In addition, the results from the Deaty prospect along the Kawa trend has demonstrated gold mineralization over a 4.5 km length and show the need for systematic exploration along the approximately 10km long trend to develop robust drill targets as the Company aims to realize the full potential of this structural corridor. Select results of the surface grabs and mineralized channel widths are included in Table 2 and Table 3 respectively.
Figure 2: Select assays from grab and channel sampling during the 2023 field activities.
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Table 2: Selected surface grab sample results from the 2023 field program.
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Table 3: Significant channel widths from the 2023 field program.
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Update of ongoing field activities
In 2024 Goldshore has embarked on a systematic geochemical sampling program across the core of the project surrounding the Moss Deposit in order to identify the broader signature of the gold mineralization system and identify further targets. This work is split between an ongoing summer/fall outcrop sampling program and a top-of-bedrock drilling campaign that is in planning stages for 2025 to infill unexposed areas. Sampling from prior field work is contributing to this project where able.
A stripping program is also scheduled in the fall to expose more of the SW Kawa prospect discovered in 2022 (2.5km southeast of the Moss Deposit). Additional detailed geological mapping and channel sampling will assist in determining correlations between the broad mineralization seen across the Kawa trend and that of the Moss Deposit.
Mineral resources that are not mineral reserves have no demonstrated economic viability. There is no guarantee that any part of the mineral resources discussed herein will be converted to a mineral reserve in the future. The estimate of mineral resources may also be materially affected by geology, environment, permitting, legal, title, taxation, soci-political, marketing, or other relevant issues.
Digital marketing services
Machai Capital Inc. (“Machai”) has been engaged to provide branding and content and data optimization to assist the Company in creating in-depth marketing campaigns. Machai will also offer search engine optimization, search engine marketing, lead generation, digital marketing, social media marketing, email marketing, and brand marketing services to the Company.
Machai has been engaged by the Company for an initial 3-month period. In consideration for the services provided, the Company will pay Machai a total of $110,000 in cash based on the completion of service milestones.
Machai has a business address at 505 – 5033 Cambie Street, Vancouver, BC, V5Z 0H6. The services to be provided by Machai will be overseen by Suneal Sandhu, President. The Company and Machai act at arm’s length, and neither Machai Capital nor Suneal Sandhu has a present interest, directly or indirectly, in the Company or its securities, or any right or present intent to acquire such an interest.
Machai has agreed to comply with all applicable securities laws and the policies of the TSX Venture Exchange in providing the services to the Company.
Qualified Person
Peter Flindell, PGeo, MAusIMM, MAIG, Vice-President, Exploration, of the Company, and a qualified person under National Instrument 43-101, has approved the scientific and technical information contained in this news release.
About Goldshore
Goldshore is a growth-oriented gold company focused on delivering long-term shareholder and stakeholder value through the acquisition and advancement of primary gold assets in tier-one jurisdictions. It is led by the ex-global head of structural geology for the world’s largest gold company and backed by one of Canada’s pre-eminent private equity firms. The Company’s current focus is the advanced stage 100% owned Moss Gold Project which is positioned in Ontario, Canada, with direct access from the Trans-Canada Highway, hydroelectric power near site, supportive local communities and skilled workforce. The Company has invested over $60 million of new capital and completed approximately 80,000 meters of drilling on the Moss Gold Project, which, in aggregate, has had over 235,000 meters of drilling. The 2024 updated NI 43-101 mineral resource estimate (“MRE”) has expanded to 1.54 million ounces of Indicated gold resources at 1.23 g/t Au and 5.20 million ounces of Inferred gold resources at 1.11 g/t Au. The MRE only encompasses 3.6 kilometers of the 35+ kilometer mineralized trend, remains open at depth and along strike and is one of the few remaining major Canadian gold deposits positioned for fast track through this development cycle. For more information, please visit SEDAR+ (www.sedarplus.ca) and the Company’s website (www.goldshoreresources.com).
For More Information – Please Contact:
Michael Henrichsen
President, Chief Executive Officer and Director
Goldshore Resources Inc.
E: mhenrichsen@goldshoreresources.com
W: www.goldshoreresources.com
Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.
Cautionary Note Regarding Forward-Looking Statements
This news release contains statements that constitute “forward-looking statements.” Such forward looking statements involve known and unknown risks, uncertainties and other factors that may cause the Company’s actual results, performance or achievements, or developments to differ materially from the anticipated results, performance or achievements expressed or implied by such 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.
Forward-looking statements in this news release include, among others, statements relating to expectations regarding the exploration and development of the Moss Gold Project, the Company’s plans to conduct systematic top of bedrock sampling and ground based induced polarization geophysical surveys over prospective shear zones to develop robust drill targets, the proposed program to efficiently evaluate the 23 km of prospective structural corridors in the Moss Deposit area, the top-of-bedrock drilling campaign planned in winter 2025, the stripping program scheduled for the fall, and other statements that are not historical facts. By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors and risks include, among others: the Company’s plans to conduct systematic top of bedrock sampling and ground based induced polarization geophysical surveys over prospective shear zones to develop robust drill targets, the proposed program to efficiently evaluate the 23 km of prospective structural corridors in the Moss Deposit area, the top-of-bedrock drilling campaign planned in winter 2025, and the stripping program scheduled for the fall may not be carried on the timing anticipated or at all; the Company may require additional financing from time to time in order to continue its operations which may not be available when needed or on acceptable terms and conditions acceptable; compliance with extensive government regulation; domestic and foreign laws and regulations could adversely affect the Company’s business and results of operations; and the stock markets have experienced volatility that often has been unrelated to the performance of companies and these fluctuations may adversely affect the price of the Company’s securities, regardless of its operating performance. The forward-looking information in this news release is based on management’s reasonable expectations and assumptions, including that the Company’s business and financial position and general economic conditions will not be adversely affected and that the Company’s planned exploration and development programs will be completed and on the timetable expected.
The forward-looking information contained in this news release represents the expectations of the Company as of the date of this news release and, accordingly, is subject to change after such date. Readers should not place undue importance on forward-looking information and should not rely upon this information as of any other date. 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.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/224186