BEDFORD, NS, Nov. 17, 2016 /CNW/ - Zonte Metals Inc (TSXV: ZON) ("Zonte") is pleased to announce it has signed a binding Letter Agreement to option and acquire 100% of the McConnells Jest project, in the Tintina Gold Belt in the Yukon Territory, which is composed of 172 claims totaling approximately 3371 hectares.
The agreement was entered into between Zonte and Bill Koe-Carson (the "Optionor") and grants Zonte the option to purchase a 100% interest in the project by making payments of $150,000 over two years and 1.5 Million common shares over three years. The claims are subject to a 3% NSR, 2/3rds of which can be purchased for $2,000,000. The acquisition is subject to a finder's fee and acceptance by the TSX Venture Exchange.
The McConnells Jest project hosts an Intrusion Related Gold System (IRGS) where gold mineralization has been identified in sheeted and scorodite veins in numerous areas within a pluton that is approximately 7 by 2.5 km in size. The project is adjacent to the Dublin Gulch Project owned by Victoria Gold (TSXV: VIT). Victoria is currently constructing the Eagle Mine which is projected to produce 200,000 ounces of gold per year for 10 years according to the recently released National Instrument 43-101 Feasibility Study. The Dublin Gulch is a reduced IRGS that is 5 by 2 km in size and contains a resource of 6.3 Million ounces of gold in indicated and inferred categories.
The McConnells Jest property has been explored sporadically since it was acquired in 2010 and work has been limited to soil and rock sampling. Soil sampling has produced numerous multi-element anomalies, several of which correlate with discovered bedrock gold mineralization. Prospecting has successfully identified five bedrock target areas containing gold mineralization characteristic of IRGS's. The most intriguing target, the Two-Four Zone, was discovered this summer. The Two-Four zone lies on the edge of the pluton and hosts a series of high density auriferous quartz and scorodite veins. The veins generally assay between 4 to 41 g/t Au and are 3 to 5 cm wide. The scorodite vein density at this target is abnormally high with about one vein per metre, which compares to other IRGS systems in the area where scorodite veins are typically spaced out at one vein every 20 to 30 metres, according to Andy Randell, P Geo. of SGDS Hive. Mr. Randell has considerable experience in IRG systems as he was the project geologist for the adjacent Dublin Gulch for 2.5 years and spent several additional years on IGR systems in the Yukon. Mr. Randell has visited the McConnells Jest project on two occasions and is preparing a National Instrument 43-101 for the project. According to Mr. Randell, only about 50 metres of the zone was examined, but visual inspection and aerial photo interpretation shows the structure running for approximately 1 kilometre. Please see the following link for location map and targets noted herein; http://www.zontemetals.com/projects/mcconnells-jest/
Four additional gold zones in bedrock have been identified with limited exploration. The Pink Mountain target, which covers an area of 500 by 375 metres is open on three sides and located at the centre of the pluton. Pink Mountain contains an abundance of sheeted auriferous quartz veins in numerous locations with veining density running as high as 5 veins per metre. Vein sampling returned values up to 7.17 g/t Au. The Bullion zone is a highly oxidized bedrock target containing numerous scorodite veins with samples assaying up to 28.8 g/t. The Seven-Four and the Tea zone have returned gold in bedrock and require additional follow-up exploration.
Mr. Randell notes that the centre of the intrusion contains sheeted and scorodite veins; the later pointing to the fact the complete intrusion is likely intact and has not been eroded. If this is the case, there is significant additional potential for mineralization since the complete carapace (outer and top of the pluton) could be intact, and this is typically where the mineralization is concentrated in IRG systems.
Terry Christopher, President and CEO of Zonte Metals, quotes "It's been five years since the Zonte has made a property acquisition. During that time the company has reviewed and passed on a considerable number of projects. Zonte has been focused on acquiring a high-value gold project in a safe, mining-friendly jurisdiction. We believe that in the McConnells Jest project we've found a property that not only meets, but exceeds our criteria. The McConnells Jest project is rare in that it offers the opportunity for multiple target potential and is located next to Victoria Gold's Dublin Gulch project which hosts a global resource of 6.3 Million ounces of gold."
Zonte Metals Inc. is a junior explorer focused on gold and copper. The Company has the Wings Point Gold Project which is a drill ready project in Newfoundland and Labrador. In addition, the Company and partner have an application over open areas sitting on top of the open pit outline of the Gramalote Deposit in Colombia, which is held by AngloGold Ashanti (NYSE: AU) and B2Gold (TSX: BTO) (NYSE: BTG). The title issuance is being contested by the state governing the application and the Company has started legal action to protect its rights.
Andy Randell, P.Geo. is the qualified person as defined by NI 43-101 and is responsible for the preparation of the Technical Report and the technical disclosures in this press release.
This news release contains forward-looking statements which include statements regarding the Corporation's future plans, as well as statements regarding financial and business prospects and the Corporation's future plans, objectives or economic performance and financial outlooks. The Corporation believes that the expectations reflected in this news release are reasonable but actual results may be affected by a variety of variables and may be materially different from the results or events predicted in the forward-looking statements. Readers are therefore cautioned not to place undue reliance on these forward-looking statements.
In evaluating forward-looking statements readers should consider the risk factors which could cause actual results or events to differ materially from those indicated by such forward-looking statements. These forward-looking statements are made as of the date hereof, and unless otherwise required by applicable securities laws, the Corporation does not intend nor does it undertake any obligation to update or revise any forward-looking statements.
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 of accuracy of this release.
SOURCE Zonte Metals Inc.
For further information: Terry Christopher, CEO and President, 902-405-3520, firstname.lastname@example.org, www.zontemetals.com