Genius Metals Adds the Nictaux Fall Dams and A Lake Properties to its Portfolio, Announces Amendment to Mt. Cameron Option Agreement and Initiates Exploration at Meaghers
Nov 15, 2018, 10:01 ET
ST-SAUVEUR, QC, Nov. 15, 2018 /CNW/ - Genius Metals Inc. (CSE: GENI) ("Genius") is pleased to announce several transactions which strengthen its mining properties portfolio in Nova Scotia and New Brunswick:
- Amendment to the Mt. Cameron Option Agreement;
- Acquisition of the A Lake Cu-Sn-Zn Property;
- Acquisition of the Nictaux Falls Dam Co-Ni-As-Bi-Au Property;
- Beginning Exploration Program at Meaghers
Amendment to Mt. Cameron Option Agreement, Nova Scotia
The Corporation has completed an amended agreement (the "Amendment Agreement") to the option agreement entered into with Mt. Cameron Minerals Inc. ("MCM") on March 8, 2017 (the "Option Agreement"), pursuant to which the Corporation has an option to acquire from MCM an undivided 80% interest in and to the leases, licenses, claims, permits and authorities relating to the Mt. Cameron property located in Nova Scotia (the "Tenements").
Pursuant to the terms and conditions of the Option Agreement, the Corporation has the option to acquire the Tenements, upon, among other things, incurring not less than $1,000,000 of direct expenditures (including exploration, evaluation and development of the Tenements) on the Tenements (the "Direct Expenditures"), as follows: $500,000 on or before December 31, 2019 and $500,000 on or before December 31, 2020. MCM and the Corporation agreed to amend the Option Agreement to extend the period granted to the Corporation to incur the Direct Expenditures and postpone the above mention deadlines by a year each.
In consideration for the postponement of the deadlines to incur the Direct Expenditures, the Corporation issued an aggregate of 100,000 common shares of its capital stock to stakeholders of MCM. These common shares are subject to a hold period under applicable securities laws, which will expire four months and one day from the date of their issuance.
The Property is conveniently located 25 kilometers west of Sydney, Nova Scotia and is comprised of 7 licenses (82 claims over 13.3 km2). The property is easily accessible by paved roads and in close proximity of powerlines. With the potential construction of NOVAPORT, a deep-water mega-terminal in Sydney, trans-Atlantic shipping would be readily available. Sydney has a highly skilled workforce, having an extensive history in steel manufacturing and coal mining.
The George River Group marbles underlying the Property host graphite in flake and massive form. The mineralization is concentrated in marble and dolomitic horizons. It has been observed along strike for a length of approximately 9.5 kilometers and a width up to 300 meters A TDEM heliborne survey was carried out in 2017 over the property allowing the discovery of four important conductive zones located in the northeastern area and associated with graphite-mineralized lithologies. MCM has carried out prospecting, drilling and geophysics on the Property; all of which indicate an extensive mineralized zone.
A Lake Cu-Sn-Zn Property, New Brunswick
Genius has signed a Letter of Intent (the "Letter of Intent") to acquire the interest of Atlantic Vanadium Corporation ("Atlantic") in the A Lake Property, located in northern New Brunswick.
Genius agrees to pay an amount of $10,000 to Atlantic. This payment will entitle Genius to have access, as soon as they will become available, to reports and presentations concerning the Property.
In addition, Genius agrees to incur exploration work for an amount of $10,000 on the Property, in November 2018.
Finally, Genius agrees to pay an additional amount of $20,000 to Atlantic on or prior to January 15, 2019.
Thereafter, subject to our complete due diligence review of the Property, Genius could acquire a 100% interest in the Property for the following considerations:
- Incur exploration work for an aggregate amount of $500,000, on or prior to December 31, 2021;
- Make annual cash payments equal to 10% of the amount spent in exploration for that year, pursuant to paragraph 1, subject to a maximum of $50,000; and
- Pay a 4% NSR, with a buy-down before December 31, 2023 of $500,000 for the first 1%, $1 million for the second 1% and $2 million for the third 1%.
The A Lake property is located in southern New Brunswick within the Charlotte County, NTS map 21G07. It consists of six claims (8866, 8840, 8864, 8896, 8897 and 8900) containing 78 units covering 17.2 km2. The geology reveals a series of Late Devonian porphyritic, equigranular, fined-grained or seriate biotite±hornblende monzogranite, biotite microgranite plutons hosting endogranitic, granophile-element Sn-, W-, Mo-, Zn-, Bi-, and U-bearing greisen/sheeted veins. The rocks belong to the Mount Douglas Granite which constitutes a unit of the Saint George Plutonic suite.
The A Lake property was prospected during the late summer and fall of 2018. Numerous mineralized float samples were recovered of mineralized copper, tin and zinc greisens in various parts of the property. Initial assays on the discovery samples performed in 2014 gave results of > 8% copper and > 0.2 % tin. Newer samples have been sent to Activation Labs for analysis, which are expected shortly. Trenching targets have been identified and are planned for work in the near future.
The claims are located < 20 km from the W-Mo Mount Pleasant deposit associated with hydrothermally porphyritic granites intruding intracaldera Late Devonian volcanic and sedimentary rocks of the Piskahegan Group.
Nictaux Falls Dam Co-Ni-As-Bi-Au Property, Nova Scotia
The Corporation has signed a letter of intent (the "Letter of Intent") to acquire the interest of Atlantic Vanadium Corporation ("Atlantic") in the Nictaux Property, located in Nova Scotia.
Genius agrees to pay an amount of $10,000 to Atlantic. This payment will entitle Genius to have access, as soon as they will become available, to reports and presentations on the Property. In addition, Genius agrees to pay an additional amount of $20,000 to Atlantic on or prior to February 28, 2019.
Thereafter, subject to our complete due diligence review of the Property, Genius could acquire a 100% interest in the Property for the following considerations:
- Incur exploration work for an aggregate amount of $500,000, on or prior to December 31, 2021;
- Make annual cash payments equal to 10% of the amount spent in exploration for that year, pursuant to paragraph 1, subject to a maximum of $50,000; and
- Pay a 3% NSR, with a buy-down before December 31, 2023 of $500,000 for the first 1% and $1 million for the second 1%.
The parties intend that the closing of the Proposed Transaction (the "Closing") occur as soon as reasonably possible after finalization and execution of the Definitive Agreement but no later than February 28, 2019 (the "Closing Date"), unless otherwise agreed to in writing by the parties.
The Nictaux Falls Dam property sits in the Meguma terrane of northwestern Nova Scotia. The oldest rocks on the property are the Lower Ordovician Halifax Formation cut by several basic sills and dykes. The formation is conformably overlain by the Ordovician-Silurian White Rock Formation, composed of thinly interlaminated silty slate and quartzites, interbedded volcanics, quartz arenites. It is in turn covered by the Lower Devonian Torbrook Formation made of fine grained gray pelitic rocks. The Nictaux Property contains polymetallic (Co-Ni-As-Bi-Au) sulphide-bearing quartz veins and stockwerks hosted by the Ordovician-Silurian White Rock Fm. The veins are exposed in the spillway of the Nova Scotia Nictaux Falls Power Dam, in the southern margin of the Annapolis Valley. They contain arsenopyrite, cobaltite, pyrite, chalcopyrite and native gold. The Ordovician-Silurian formations are cut by granitoid rocks of the Devonian South Mountain Batholith. Sampling by a government geologist in 1992 returned concentrations of up to 1.6% Co, 0.28% Ni, 88ppm Bi and 776.11 g/t Au from the main showing.
Meaghers Gold property, Nova Scotia
The Meaghers property is located in South-Central Nova Scotia within the Halifax County, 39 km NE from the Halifax-Dartmouth conglomeration. The property consists of a continuous block of seven licenses, 100% owned by Genius, comprising 243 claims and covering 3934 ha. Access from Halifax-Dartmouth urban center to the western end of the property is by a paved road system, whereas several secondary roads crisscross the entire Meaghers property.
The property is situated <10 km from Atlantic Gold's Touquoy Mine (Total Measured and Indicated Reserves at Touquoy: 10.1 Mt @ 1.48 g/t Au (479,000 oz.); Staples et al., 2018). The property reveals similar geological and structural characteristics to the Touquoy Mine such as exposures of the gold-bearing Goldenville Formation, the presence of warped and folded anticlines and a comparable magnetic signature.
The Meaghers property forms part of the Meguma Terrane of southeastern Nova Scotia. It is underlain by folded Cambro-Ordovician sedimentary sequences of the Meguma Group (Goldenville and Halifax formations) and extensive Mid-Devonian granitoids. Gold mining in Nova Scotia within the Goldenville Formation (ex; the Moose River Gold District) takes place in quartz veins, typically associated with the limbs and hinges of anticlines.
Genius is initiating a RC drilling program in the eastern part of the property targeting the southwestern extension of the Moose River-Fifteen Miles anticline particularly its hinge and south limb where gold mineralization is most likely to occur.
The technical contents of this release were approved by Michel Boily, PhD, geo; a Qualified Person (QP) as defined by National Instrument 43-101.
About Genius Metals Inc.
Genius Metals is a Canadian mineral exploration company focused on the acquisition, exploration and, if warranted, development of natural resource properties of merit in Canada.
The CSE has in no way passed upon the merits of the transactions and has neither approved nor disapproved the contents of this news release. Neither the CSE nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this news release.
Forward-Looking Statements and Disclaimer
Certain information contained herein may constitute "forward-looking information" under Canadian securities legislation. Generally, forward-looking information can be identified by the use of forward-looking terminology such as, "will be", "expected" or variations of such words and phrases or statements that certain actions, events or results "will" occur. Forward-looking statements regarding the listing and trading of the Corporation's common shares on the CSE and the availability of a listing statement on the CSE's website and on SEDAR are based on the Company's estimates and are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Corporation to be materially different from those expressed or implied by such forward-looking statements or forward-looking information. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements and forward-looking information. The Corporation will not update any forward-looking statements or forward-looking information that are incorporated by reference herein, except as required by applicable securities laws.
SOURCE Genius Metals Inc.
For further information: Guy Goulet, President and CEO, Tel.: 579 476-7000, Email: [email protected]