VANCOUVER, Feb. 1, 2018 /CNW/ - Dynasty Gold Corp. (TSX-V: DYG) (FWB: D5G) (OTC: DGDCF) ("Dynasty" or the "Company") is pleased to announce that it has signed an option agreement with Teck Resources Limited (TSX: TECK, "Teck") to acquire a 100% interest in the Thundercloud gold property ("the Property") located in the Archean Manitou-Stormy Lakes Greenstone belt in Ontario. The belt contains numerous gold showings, several deposits and historic past producers including the Big Master Mine (1902-1943) and the Laurentian Mine (1906-1909). Results to date indicate excellent potential to define bulk-tonnage orogenic gold mineralization with potential for high grade mineralization.
The Property consists of 2,250 hectares, located 47 kilometres southeast of Dryden, northern Ontario. It is readily accessible from the Trans-Canada Highway (Hwy 17). Dryden is a resource-based town with excellent infrastructure necessary for mining operations. Several large scale mining operations in the area include New Gold's Rainy River Mine (6.4 million oz gold and 18.7 million oz silver), and Goldcorp's Red Lake Gold Mine (9.25 million oz gold) as well as multiple multi-million ounce gold reserves, defined at the Canadian Malartic Hammond Reef deposit (5.8 million oz gold), and First Mining Gold's Springpole deposit (4.9 million oz gold).
Highlights of drill results from historic work and the recent drilling by Teck (2007 and 2008) and Laurentian Goldfields (2011) include:
- 113.0 m @ 1.72 g/t Au (88-10)
- 60.30 m @ 1.46 g/t Au (88-05)
- 55.25 m @ 2.19 g/t Au (TC08-11), including 1 m @ 37.5 g/t Au, 9.34 m @ 7.91 g/t Au and 21.73 m @ 4.63 g/t Au
- 29.66 m @ 0.77 g/t Au including 9.04 m @ 2.20 g/t Au (TC08-09)
- 68.8 m @ 1.55 g/t Au (TC11-001)
- 81.0 m @ 1.31 g/t Au (TC11-006)
The highest grade from historical drilling returned up to 192.7 g/t gold over narrow intervals.
Fladgate Exploration Consulting was contracted in 2011 to create a 3D resource model of the Thundercloud historical drill data, assuming a specific gravity of 2.7 for all rocks. The model for the Pelham Zone exploration target showed an estimated potential amount of contained gold of 300,000 ounces, at a head grade of 1.6 g/t Au, using a 0.5 g/t cut-off grade, in the different grade shells. This initial resource estimate was developed for targeting purposes, and it is not National Instrument 43-101 compliant.
The main focus of the work in the past was in the Pelham Zone with limited drilling. The West Contact Zone, where trenching results in 2006 and 2007 consistently returned 1.0-9.8 g/t Au, 8.02 g/t Au over 39.0 m's including 89.4 g/t over 3.0 m, has seen little follow up work.
The Company has not independently verified any of the results reported in this news release.
Subject to the Exchange's approval, the Company has an option to earn up to a 100% interest in the Property by spending $6 million over five years and by issuing 1,000,000 common shares of the Company to Teck. The first 500,000 common shares are to be issued within 7 days of the Exchange's approval of the option agreement and the second 500,000 common shares are to be issued on the first anniversary of signing of the agreement. The Company must spend $300,000 in mandatory expenditures in the first year.
Teck retains a back-in right to earn back to a 65% interest in the Property by spending $15 million over four years ("Back-in Right"). Teck can elect to pursue the Back-in Right by delivering notice within 90 days following receipt of the Dynasty Expenditure Notice. If the Back-in Right is not exercised, Teck would retain a 2% net smelter returns royalty ("NSR") that can be reduced by the Company to a 1.5% NSR by making a cash payment of $1 million to Teck.
"It is an exciting project with high grade targets as well as bulk tonnage potential. We will be able to build on the good work done by Teck and others as we plan a drill program," said Larry Kornze, Vice President of Exploration.
"The Property is in a proven and well established mining district with many multi-million oz gold deposits and developed reserves," stated Ivy Chong, President and CEO. "It is a great opportunity for the Company to expand its portfolio into one of the most prolific mining areas in North America."
The Company's Director, Larry Kornze, a 'qualified person' for the purposes of National Instrument 43-101 Standards of Disclosure for Mineral Properties, has reviewed the technical data contained in this news release.
About Thundercloud Property
The Manitou-Stormy Lakes Greenstone belt lies within the western Wabigoon Subprovince, a granite-greenstone terrane of the Superior Province. A number of thick volcano-sedimentary sequences consisting of mafic to felsic lavas and associated intrusions and pyroclastic rocks, all of which are generally overlain by sedimentary sequences, characterize the belt. Gold-bearing mineralized zones are focused in a north-south corridor within the central portion of the property. Host rocks comprise tholeiitic basalts overlain by a suite of clastic rocks of the Stormy Lake Group, including conglomerates, breccias and sandstones with a wide range in matrix and clast compositions. These rocks form a structurally complex central corridor between the intermediate composition Taylor Lake stock (2695±4 Ma: Davis et al. 1982) to the west and the felsic Thundercloud quartz-feldspar porphyry ("QFP") to the east.
Gold is associated with hydrothermal alteration domains characterized by biotite-magnetite alteration with minor quartz veins and pyrrhotite. Biotite-magnetite alteration is in turn cut by chlorite-carbonate and pyrite. Both pyrrhotite and pyrite occur as disseminations, clots and veins, and are variably strained. In general, there is a correlation between sulphide concentration and gold grade, though a high ratio of pyrrhotite relative to pyrite appears to be the key for gold enrichment.
Given the importance of magnetite and pyrrhotite in the hydrothermal assemblage, several untested ground magnetic targets warrant trenching and/or drill testing. The presence of sulphides in association with gold suggests that chargeability is a key targeting tool, and this is confirmed by an excellent association of gold with a strong chargeability anomaly in the Pelham area. Additional modelled chargeability anomalies remain untested.
About Dynasty Gold Corp.
Dynasty Gold Corp. is a Canadian gold exploration company currently focused on gold exploration in North America. For more information on the Company and its projects, please refer to the website www.dynastygoldcorp.com.
ON BEHALF OF THE BOARD OF
DYNASTY GOLD CORP.
Ivy Chong, President & CEO
This press release contains certain "forward-looking statements" that involve a number of risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
SOURCE Dynasty Gold Corp.
For further information: Vancouver Office: Ivy Chong, Phone: 604.633.2100. Email: [email protected]