SUDBURY, ON, March 6, 2017 /CNW/ - Canadian Gold Miner ("CGM" or "the Company) and Transition Metals Corp. ("Transition Metals", XTM.V) are pleased to announce that CGM has entered into two option and joint venture agreements that allow Trelawney Mining and Exploration Inc. ("Trelawney"), a wholly owned subsidiary of IAMGOLD Corporation, to earn up to an 80% interest in the Jumping Moose and Elephant Head projects, located close to the Côté Gold deposit near Gogama Ontario by incurring work expenditures on the properties and making cash payments to CGM.
Canadian Gold Miner CEO Greg Collins commented, "Both the Jumping Moose and Elephant Head properties have the potential to host gold deposits with exceptional grade. The Jumping Moose project hosts a cluster of angular boulders that have returned assays from grab samples containing up to 374 grams per tonne gold. At Elephant Head, a 1 kilometre long mineralized trend has been identified with grab samples returning up to 57.3 grams per tonne gold. We look forward to working with our new partner to advance these projects while the focus for Canadian Gold miner will be the advancement of our Lincoln-Nipissing and high grade Midlothian gold projects."
The Jumping Moose project
The Jumping Moose project area is located in Burrows and Kemp townships in the northwestern corner of the Larder Lake Mining District, Ontario approximately 50 kilometres northeast of IAMGOLD's Côté Gold deposit near Gogama. The property hosts a cluster of extremely high grade gold-silver-tellurium bearing quartz vein boulders located on the east side of Jumping Moose Lake that were identified in the 1950's. Grab samples of the float boulders collected by the Company have yielded assay values up to 374 g/t Au and 648 g/t Ag.
Under the terms of the option and joint venture agreement, Trelawney can earn an initial 51% interest by incurring $850,000 of expenditures and paying CGM $80,000 in cash over 3 years, with an option to increase up to an 80% interest by incurring an additional $2,000,000 in expenditures and making additional $250,000 in cash payments to CGM over 2 years following the initial 51% interest earn in. Upon earning a 51% or 80% interest, as the case may be, the Option will convert to a joint venture with each party providing funding to maintain its proportionate interest or be diluted down. Should a party be diluted to 10% or less, its interest would be converted to a 2% NSR. The Jumping Moose property remains subject to an underlying 2% NSR to the original land holder and a $1,000,000 commercial production payment to Transition Metals.
The Elephant Head project
The Elephant Head property is located in Connaught Township, Larder Lake Mining Division approximately 40 kilometres east of IAMGOLD's Côté Gold deposit. Prospecting and sampling conducted in 2012 and 2014 in the vicinity of a poorly exposed silicified shear zone with variable sulphide mineralization yielded up to 57.3 g/t Au and outlined an area approximately 400 by 1000 metres with similar geological and structural characteristics to those associated with the Chester 1 and 2 lode-gold deposits located near Côté Lake. At Elephant Head, a number of historical pits and trenches are exposed that have returned assays from grab samples up to 57.3 g/t Au. In 2014, portions of the property were covered by an SGH ¹ soil orientation survey consisting of 62 samples collected over the vicinity of known mineralized occurrences which outlined geochemical anomalies to the west and north of the known showings.
Under the terms of the option and joint venture agreement, Trelawney can earn an initial 51% interest by incurring $850,000 of expenditures and paying CGM $80,000 in cash over 3 years, with an option to increase up to an 80% interest by incurring an additional $2,000,000 in expenditures and making additional $250,000 in cash payments to CGM over 2 years following the initial 51% earn in. Upon earning a 51% or 80% interest, as the case may be, the Option will convert to a joint venture with each party providing funding to maintain its proportionate interest or be diluted down. Should a party be diluted to 10% or less, its interest would be converted to a 2% NSR. The Jumping Moose property remains subject to an underlying 2% NSR and a $1,000,000 million commercial production payment to Transition Metals.
Figure 1. Depicts the location of the Jumping Moose and Elephant Head Properties
¹ Spatiotemporal Geochemical Hydrocarbons
The technical elements of this press release have been approved by Mr. Tom Hart, P.Geo. (APGO), a Qualified Person as defined under National Instrument 43-101.
About Canadian Gold Miner
Canadian Gold Miner Corp. is 65% owned by Transition Metals Corp (XTM –TSX-V) and is a Canadian private corporation focused on exploring for gold in the Larder Lake Mining District near Kirkland Lake. The Company was founded by Transition to leverage its data, expertise and extensive portfolio of high quality gold projects. CGM has assembled a dominant land position in excess of 165 square kilometres around the Cadillac Larder, Lincoln-Nipissing and Ridout Structures in the southwestern part of the prolific Abitibi Greenstone belt in Ontario. The Abitibi Greenstone belt is Canada's most prolific gold district located in a stable political jurisdiction with excellent mining infrastructure in place.
Transition Metals Corp
Transition Metals Corp (XTM -TSX.V) is a Canadian-based, multi-commodity project generator that specializes in converting new exploration ideas into discoveries. The award-winning team of geoscientists has extensive exploration experience which actively develops and tests new ideas for discovering mineralization in places that others have not looked, often allowing the company to acquire properties inexpensively. Rigorous fieldwork combining traditional and new techniques helps unearth compelling prospects and drill targets. Transition uses the project generator business model to acquire and advance multiple exploration projects simultaneously, thereby maximizing shareholder exposure to discovery and capital gain. Joint venture partners earn an interest in the projects by funding a portion of higher-risk drilling and exploration, allowing Transition to conserve capital and minimize shareholder's equity dilution. The company has a portfolio that currently includes gold, copper, nickel and platinum projects primarily in Ontario, Nunavut and Saskatchewan.
2017 PDAC Conference
Transition Metals Corp, Canadian Gold Miner and Sudbury Platinum Corporation will have a significant presence at the PDAC Conference being held at the Metro Convention Centre. We welcome your enquiry and there will be a number of opportunities to meet with management and exploration teams. Please drop by Booth 2126 of the Investor's Exchange from 10 am to 5 pm Sunday to Tuesday, and 9 am to 12 pm Wednesday. The Investors Exchange is open to the public and does not require a fee.
Cautionary Note on Forward-Looking Information
Except for statements of historical fact contained herein, the information in this news release constitutes "forward-looking information" within the meaning of Canadian securities law. Such forward-looking information may be identified by words such as "plans", "proposes", "estimates", "intends", "expects", "believes", "may", "will" and include without limitation, statements regarding estimated capital and operating costs, expected production timeline, benefits of updated development plans, foreign exchange assumptions and regulatory approvals. There can be no assurance that such statements will prove to be accurate; actual results and future events could differ materially from such statements. Factors that could cause actual results to differ materially include, among others, metal prices, competition, risks inherent in the mining industry, and regulatory risks. Most of these factors are outside the control of the Company. Investors are cautioned not to put undue reliance on forward-looking information. Except as otherwise required by applicable securities statutes or regulation, the Company expressly disclaims any intent or obligation to update publicly forward-looking information, 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.
SOURCE Transition Metals Corp.
For further information: Further information is available at www.transitionmetalscorp.com or by contacting: Greg Collins, President and CEO, Canadian Gold Miner Corp., Tel: (705) 669-0590; Scott McLean, President and CEO, Transition Metals Corp, Tel: (705) 669-1777