TSX-V: VEIN | FSE: N071
TORONTO, Jan. 11, 2018 /CNW/ - Enforcer Gold Corp ("Enforcer" or the "Company") (TSX-V: VEIN – FSE: N071) is pleased to announce it has entered into an option and joint venture agreement with SOQUEM Inc. ("SOQUEM") to acquire a 50% interest in the Roger Property ("Roger" or the "Property") located in the prolific Abitibi greenstone belt, 5 km from Chibougamau, Quebec.
President & CEO, Steve Roebuck, comments:
"We are very pleased to have the opportunity to earn 50% in the advanced-stage Roger gold-copper porphyry property and to be working with a stable partner in SOQUEM. Roger comes with a substantial database with over 54,906 m of diamond drilling and 1,177 m of underground development and a historical resource estimate. Our plan is to quickly advance the project through additional drilling to bring it to a current mineral resource status. SOQUEM has been involved with the property since 1997 and thus brings extensive knowledge and continuity to the project going forward. We are excited to add to our Quebec project base and to be working in one of Quebec's underexplored gold districts."
The Roger Property
Roger is an advanced-stage exploration property containing the Mop-ll porphyry gold-copper deposit. A 2006 NI 43-101 compliant mineral resource estimate on the deposit by Scott Wilson Roscoe Postle Associates Inc. for SOQUEM totalled 3.24 Mt of Inferred Resources at an average grade of 1.61 g/t Au and 0.04% Cu at a cut-off grade of 1.0 g/t Au for a total 167,200 ounces of gold.
N.B.: Enforcer considers the 2006 estimate as a historical resource estimate that has relevance to the project; however, a qualified person for the Company has not done sufficient work to classify the historical estimate as a current mineral resource and as such it should not be relied on.
Subsequent to completion of the 2006 estimate, SOQUEM drilled an additional 60 holes on the property totalling 15,456 m of diamond drilling. In 1988, an underground exploration program on the deposit included 1,177 m of underground development and 1,433 m of underground drilling in 23 core holes. In total, 54,906 m of diamond drilling have been completed on the property.
The 987-hectare Roger property is located in the Chibougamau Mining District within the prolific Abitibi greenstone belt. It is situated 5 km from the mining center of Chibougamau, Quebec and has all-season road access. The first gold/copper discoveries in the Chibougamau district occurred in the early 1900s. Mining in the district from 1953 to 2008 produced 1.6 billion pounds of copper and 3.2 million ounces of gold along with significant amounts of silver and zinc.
Terms of the Agreement
Under the terms of the option agreement (the "Option"), Enforcer can earn a 50% undivided interest in the Property after Enforcer invests $2,000,000 in a work program over 3 years and issues 1,000,000 common shares of Enforcer to SOQUEM as follows:
Financing $2,000,000 in work program investments as follows:
- $500,000 by the end of year 1 (January 8, 2019)
- $750,000 by the end of year 2 (January 8, 2020)
- $750,000 by the end of year 3 (January 8, 2021)
Issuing a total of 1,000,000 common shares of Enforcer as follows:
- 250,000 by the end of year 1 (January 8, 2019)
- 250,000 by the end of year 2 (January 8, 2020)
- 500,000 by the end of year 1 (January 8, 2021)
The Option can be earned prior to the end of the 3-year period if Enforcer completes the work requirement and issues the common shares earlier.
SOQUEM will act as the sole manager of the Property prior to the exercise of the Option and will add a 10% management fee to the funds they manage, or in the case of third party work a 5% management fee. Upon exercise of the Option, a joint venture (the "Joint Venture") will be established to continue the exploration and potential development, construction, commercial production, mine closure and rehabilitation. Prior to the establishment of the Joint Venture, it is deemed that each party has contributed $2,000,000 to the Property. Subsequent contributions to the Property will determine the interest of each party moving forward. If both parties agree to spend their relative proportion, the Joint Venture will continue on a 50-50 basis.
SOQUEM Inc., a subsidiary of Ressources Québec, is a leading player in mineral exploration with its mission to explore, discover and develop mining properties in Quebec. SOQUEM has participated in more than 350 exploration projects and contributed to major discoveries of gold, diamonds, lithium and other minerals in Quebec.
About Enforcer Gold Corp
Enforcer Gold Corp is a Canadian-based mineral exploration company and is earning a 100% interest in the Montalembert gold project from Globex Mining Enterprises Inc. (TSX: GMX). The 7,300-hectare property is located 125 km west of Chibougamau in Quebec's prolific Abitibi greenstone belt. The Company completed its first exploration program on the project in October 2017, including 5,784 m of diamond drilling. Enforcer has a strong cash position with $3.9 M is its treasury.
Enforcer's President & CEO, Steve Roebuck, PGeo, is a Qualified Person as defined by National Instrument 43-101 and has reviewed and approved the content of this news release.
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 news release.
This news release contains "forward-looking statements" that are based on expectations, estimates, projections and interpretations as at the date of this news release. Forward-looking statements are frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate", "suggest", "indicate" and other similar words or statements that certain events or conditions "may" or "will" occur, and include, without limitation, statements regarding the Company's plans with respect to the exploration of its Roger Project, the exploration potential and analogous deposit potential of the Roger Project and the timing of the Company's exploration programs. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such risks and other factors may include, but are not limited to, the results of exploration activities; the ability of the Company to complete further exploration activities; the ability of the Company to complete transactions on terms announced; timing and availability of external financing on acceptable terms and those risk factors outlined in the Company's Management Discussion and Analysis as filed on SEDAR. Enforcer Gold does not undertake to update any forward-looking information except in accordance with applicable securities laws.
SOURCE Enforcer Gold
For further information: please visit www.enforcergold.com or contact: Steve Roebuck, President & CEO, T: (647) 496-7984, C: (905) 741-5458, E: [email protected]