VANCOUVER, Aug. 7, 2018 /CNW/ - Pacton Gold Inc. (TSXV: PAC) (OTC: PACXF) (the "Company" or "Pacton") is pleased to announce that it has entered into a binding letter of intent ("LOI") to acquire 100% of both the Yandicoogina and Boodalyerrie exploration licenses and mining leases from Gardner Mining Pty Ltd ("Gardner Mining"), an Australian proprietary limited exploration company. The acquisition of these two highly strategic projects was based on the strong relationship developed with Gardner via the Friendly Creek acquisition (see news release dated May 28, 2018). Two granted mining leases and three granted exploration licenses comprise a total of 146.80 km2 (the "Projects"). The Yandicoogina Project includes ~4.7 km of prospective strike defined by structurally controlled quartz veins host to extensive historical gold workings. Significant rock chip samples within the Yandicoogina Project range up to 199.7 g/t Au. The Boodalyerrie Project is underlain by approximately 25 km2 of sericite and silica altered granite with extensive quartz veining.
Highlights of the Transaction:
- Strategic portfolio of 2 granted mining leases and 3 granted exploration licenses (146.80 km2).
- Mining leases provide the potential for immediate large scale bulk sampling of mineralization. The 2 granted mining leases add to the 5 granted mining leases from the Friendly Creek transaction announced May 28, 2018.
- 2.3 km of strike of the contact between Hardey Formation and Mount Roe Basalt occurs within the Boodalyerrie Project.
- Considerable target size of Boodalyerrie Project due to being underlain by 25 km2 of sericite and silica altered granite with extensive quartz veining. Historical high grade channel sampling including 3 m at 88.6g/t Au and rock chips of up to 200g/t Au.
- Yandicoogina has multiple defined prospects with rock chip results of up to 199.7 g/t Au, high grade historical workings and cumulative prospective strike of 4.7 km.
"The acquisition of the Yandicoogina and Boodalyerrie Gold Projects provides a significant increase in the scale of exposure to the Pilbara region both in relation to conglomerate and structurally controlled gold systems. The high grade nature of structurally controlled gold mineralisation across an extensive strike length between the two Projects provides a compelling value proposition," commented Alec Pismiris, Interim President and CEO of Pacton Gold. "We look forward to working closely with the Gardner team, as we commence the implementation of exploration programs across these particularly exciting projects."
About Gardner Mining Team
The director, management and associated consultants of Gardner Mining have extensive local operating history within the Pilbara region of Western Australia. The team is comprised of corporate finance executives, geologists, prospectors and mining executives, and has extensive ties to the local communities where it operates. Gardner Mining will work closely with Pacton as required to maximize the ongoing development of their existing project portfolio and to identify further value accretionary opportunities.
For location map of the Property, please see: http://www.pactongold.com/Pacton-Location-Map.jpg.
Initial exploration activities planned to be undertaken include:
- Field reconnaissance of the high grade historical workings across both Projects;
- Confirmatory mapping and systematic sampling across defined prospect areas;
- Ranking of each of the prospective targets in terms of further exploration to be conducted;
- Submissions of permitting to facilitate drilling;
- Metal detecting to identify the presence of surficial gold.
Under the terms of the LOI, which will be formalized by a definitive agreement among the parties, the Company will purchase a 100% ownership interest in Projects by paying Gardner Mining CDN$25,000 and issuing to Gardner Mining 3,000,000 common shares of the Company.
This transaction is subject to the acceptance of the TSX Venture Exchange.
About Pacton Gold
Pacton Gold (PAC: TSXV; PACXF: US) is a well-financed Canadian junior with key strategic partners focused on the exploration and development of conglomerate-hosted gold properties located in the district-scale Pilbara gold rush in Western Australia. The Company currently controls the third largest conglomerate-hosted gold property portfolio totaling ~2,500 sq. km, and continues to aggressively review additional accretive acquisitions.
The technical content of this news release has been reviewed and approved Peter Caldbick, P.Geo., a director of the Company and a Qualified Person pursuant to National Instrument 43-101. The qualified person has not yet verified the data disclosed, including sampling, analytical, and test data underlying the information or opinions contained in the written disclosure.
On Behalf of the Board of Pacton Gold Inc.
Interim President & CEO
This news release contains or refers to forward-looking information based on current expectations, including, but not limited to the Company acquiring an interest in properties controlled by Gardner Mining and completion of the proposed transaction described herein, the prospect of the Company achieving success in exploring the Projects and the impact on the Company of these events, including the effect on its share price. Forward-looking information is subject to significant risks and uncertainties, as actual results may differ materially from forecasted results. Forward-looking information is provided as of the date hereof and we assume no responsibility to update or revise such information to reflect new events or circumstances. References to sample results from nearby projects are for information purposes only and there are no assurances the Company will achieve similar results at the Projects.
Neither TSX Venture Exchange, the Toronto Stock Exchange nor their 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 Pacton Gold Inc.
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