CALGARY, June 21, 2017 /CNW/ - PRIZE MINING CORPORATION ("Prize" or the "Company") (TSXV:PRZ ) (MQSB:GR:FRANKFURT) is pleased to announce that it has entered into an option agreement to acquire 100% interest in the Toughnut Property, located in south-eastern British Columbia.
The 1,010 hectare Toughnut Property lies contiguous to the west side of Prize's Daylight Property, where an extensive summer exploration program is about to begin. The Toughnut claims strategically cover over 3.5km strike length of the Silver King shear including most of the mineralized land between Prize's main Starlight-Daylight block and Prize's Sand block to the northwest.
Feisal Somji, President and CEO of Prize Mining commented, "This is a strategic acquisition for Prize Mining as we now control what we believe to be the most significant part of the mineralized Silver King shear zone. This parcel of land will be play an important role in this summer's exploration program as we prepare to drill this fall."
The Toughnut Showing (MF 092FSW294) which includes old pits, shafts and trenches had grab samples from Pacific Sentinel in 1989 that returned 6.64 g/t, 8.65 g/t, and 32.8 g/t Au with associated silver ranging between 33 and 175 g/t Ag. Follow up diamond drilling by Valterra Resource in 2010 returned a best intercept of 6.9 g/t Au and 143 g/t Ag over 2.0m, and 4.05 g/t Au over 8.0m in hole VTN10-005.
The Gold Eagle Showing (no recorded Minfile) located 500m north of the Toughnut Showing was drilled by US Borax in 1988 who reportedly returned a strongly anomalous intercept of 90 g/t Au over 1.53m (RC hole S88-43) (AR 19503). In 2010 Valterra Resources also drilled the property with its best results being 4.02 g/t Au and 9.52 g/t Ag over 24.33m (inc. 4.0m of 14.47 g/t Au and 3.46 g/t Ag). The zone has been tested to 73m and remains open and along strike and down dip.
To acquire the Toughnut Property, the Company must, on an aggregate-basis, pay CDN $150,000, issue 250,000 common shares, and incur CDN $750,000 of exploration expenditures over a five-year period. The Toughnut Property will be subject to a 2 % NSR on its acquisition by Prize. Prize shall have the right to purchase one-half of the 2% NSR for the purchase price of C$2,000,000 on or before the date on which Commercial Production commences.
The option remains subject to the satisfaction of customary conditions, including the acceptance of the TSX Venture Exchange. There is no certainty that the option will be exercised by Prize. The Toughnut Property is not presently considered to be a property material to Prize.
Jarrod Brown,P.Geo., of Terralogic Exploration Inc ., a Qualified Person under NI 43-101, has reviewed and approved the scientific and technical information in this news release. On behalf of the Board of Directors,
About Prize Mining
Prize is a Calgary based junior mining issuer with offices in Calgary, Alberta and is listed on the TSX Venture Exchange. Prize is engaged in the acquisition, exploration and development of mining properties.
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.
Forward-Looking Statements. This news release contains forward-looking statements. More particularly, this document contains statements concerning the option to acquire the Toughnut Property. Forward-looking information is frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate", "scheduled", "potential", or other similar words, or statements that certain events or conditions "may", "should" or "could" occur.
The forward-looking statements are based on certain key expectations and assumptions made by Prize, including expectations and assumptions concerning timing of receipt of required regulatory approvals, the satisfaction of other conditions to the completion of the transaction and the acquisition of the Toughnut Property upon exercise of the option. Although Prize believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because Prize can give no assurance that they will prove to be correct. There is not assurance that Prize will exercise the option and acquire the Toughnut Property. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, risks that required regulatory and third party approvals and consents are not obtained on terms satisfactory to the parties within the timelines provided for and risks that other conditions to the completion of the transactions are not satisfied on the timelines set forth in this news release or at all.
The reader is cautioned that assumptions used in the preparation of such information, although considered reasonable by the Company at the time of preparation, may prove to be incorrect and readers are cautioned not to place undue reliance on forward-looking information, which speaks only as of the date hereof. The Company does not undertake any obligation to release publicly any revisions to forward-looking information contained herein to reflect events or circumstances that occur after the date hereof or to reflect the occurrence of unanticipated events, except as may be required under applicable securities laws.
SOURCE Prize Mining Corporation
For further information: please contact Walter Spagnuolo, Investor Relations by telephone at 403.236.2222 or email at [email protected]