HALIFAX, Feb. 9, 2017 /CNW/ - Zonte Metals listed on the TSX Venture exchange late 2009 and since then has focused on acquiring gold exploration projects that show large scale potential. The recent success in acquiring the McConnell's Jest (MJ) property in the Yukon is the culmination of over five years of property investigations. The MJ is Zonte's second Canadian property, the first being the drill ready Wing's Point gold project in Newfoundland and Labrador. Additionally, in Colombia Zonte with its Colombian partner identified and made application over open areas between titles over the Gramalote Deposit which is owned by AngloGold Ashanti and B2Gold. The local authority is attempting to not title the application, however, our legal advisors have noted that if their own Mining Code is followed the application should be titled to us.
Zonte's MJ project is contiguous with Victoria Gold's (TSXV: VIT) Dublin Gulch Project. The Dublin Gulch project has a resource of 6.3 million ounces of gold (4.8 million ounces indicated and 1.5 million ounces inferred), including the Eagle Deposit which hosts a reserve of 2.7 million ounces of gold. Victoria recently announced it has arranged a US$220 million credit facility that "is expected to be the foundation of the financing package that will fund the Eagle Project through construction and into production." Production targets for the Eagle Deposit are 200,000 ounces of gold per year for 10 years with an all-in sustaining cost of US$630 per ounce, according the Eagle Gold Project Feasibility Study announced Sept 12, 2016.
Victoria's gold mineralization is hosted in and related to an intrusion which has been identified as an Intrusion Related Gold System (IRGS). That intrusion is about 5 by 2 km in size. Zonte's newly acquired MJ project also hosts an IRGS with the intrusion measuring about 7 by 2.5. The MJ project has been explored intermittently since 2010 including; soil and rock sampling and mapping. Approximately half the intrusion has been covered with a soil grid leaving the other half mostly unexplored. Soil sampling has been the key to identifying targets and so far six targets hosting bedrock gold mineralization have been identified. Two of the targets, Pink Mountain and the Two Four Zone, are most advanced in that they have received the most exploration.
The Pink Mountain target is defined by sheeted veins at densities of up to five veins per metre with the grades in those veins ranging from 1 to 7 g/t. The target area is 500 by 375 metres and open on three sides. The Two Four Zone was discovered this past summer and sits outside the soil gridded area. The Two Four Zone hosts a high-density set of auriferous quartz and scorodite veins. The veins generally assay between 4 to 41 g/t Au and are 3 to 5 cm wide. Vein samples taken from the Pink Mountain and the Two Four Zone were grab samples across the width of the veins and may not be representative of the property or targets as a whole. The Two Four Zone is unique in that the scorodite/auriferous quartz vein density is high. Generally, these veins are spaced 1 vein every 30 or so metres in these geological systems, but in a 50 metre area that was mapped the vein density was 1 vein per metre according to Andy Randell, P Geo. of SGDS Hive, who mapped the area noted. Andy has considerable experience in IRG systems, and is a former project geologist for Victoria Gold's Dublin Gulch project. Based on mapping, visual inspection and aerial photo interpretation the structure hosting this target is approximately 1 km in length. Andy also pointed out several key geological aspects that indicate the potential for additional exploration success. One of the most important geological features is the "roof" of the intrusion appears to still be intact and has not been eroded. This is important since much of the gold in these IRGS's is found in the roof. Andy has been working with the vendor of the MJ for several years and spent eight years working on an IGRS in the Yukon.
The second property in Zonte's portfolio is the Wings Point Gold Project (Wings) which is located on the island portion of Newfoundland and Labrador. The Wings project is a gold bulk-tonnage, drill ready target partially exposed in an operating rock and gravel pit. It was acquired in 2010 and over the subsequent two years was taken to the drill-ready stage. With the downturn in the commodity markets Zonte elected to put the project on hold. In Newfoundland, over the past several years, exciting exploration stories have been developing. In late 2016, Shawn Ryan, who found the Coffee deposit in the Yukon, staked a land package, including a claim block that abuts the southern portion of Wings. Stratton Resources (TSXV: SI) optioned property package from Mr. Ryan. According to press releases, Stratton is in the process of raising $13 million with some of the proceeds being used to explore its Newfoundland projects. Stratton has attracted attention with a market capitalization of approximately $50 million. In central Newfoundland, Marathon Gold (TSXV: MOZ) is drilling their Valentine Lake project with success. Their resource is over 1 million ounces of gold in the measured and indicated categories. Just north of Marathon, Antler Resources (TSXV: ANTL), has been publishing encouraging results.
In Colombia, Zonte and its local partner identified open areas between titles sitting on top of the open pit outline for the large Gramalote gold deposit, which is owned by AngloGold Ashanti (NYSE: AU) and B2Gold (TSX-BTO). The provincial authorities who manage the mineral titling system, the Secretary of Mines, is attempting to deny titling the application so we have presented the case to Special Court wherein we have asked the Judge to have the Secretary of Mines process the application according to the Colombian Mining Code. According to our legal advisors, based on the Mining Code, the application should be titled. It's unclear why the authorities won't process the application according to the Colombian mining laws.
With the recent acquisition of the McConnell's Jest project in the Yukon and the drill ready Wings Point Gold Project in Newfoundland, Zonte now has two high quality exploration assets that are ready to move to the next stage. Planning is underway for these projects and investors will be apprised of developments as they occur. We are very excited about our prospects and look forward to exploration and drilling in the 2017 field season. We would like to take this opportunity to thank shareholders who have supported the company over the early years and welcome new shareholders as we move to the next phase of our development.
This news release has been reviewed and approved by Dean Fraser, P.Geol, and a "qualified person" under National Instrument 43-101.
Zonte Metals Inc. is a junior explorer focused on gold and copper. The Company holds the Wings Point Gold Project which is a drill ready project in Newfoundland and Labrador and has signed an Option Agreement to acquire 100% of the McConnell's Jest project, in the Tintina Gold Belt, located in the Yukon Territory, which is composed of 172 claims totaling approximately 3371 hectares. In addition, the Company and a Colombian 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.
This news release contains forward-looking statements which include statements regarding the Company's future plans, as well as statements regarding financial and business prospects and the Company's future plans, objectives or economic performance and financial outlooks. The Company 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 Company 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 or 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