VANCOUVER, Dec. 13, 2019 /CNW/ - Superior Mining International Corp. ("Superior Mining" or the "Company") (TSXV: SUI.H) is pleased to announce that it has optioned the Jumping Moose Property in the prolific gold Abitibi Greenstone Belt. Superior has optioned the property from Canadian Gold Miner Corp. ("Canadian Gold").
Description of the Property
The Jumping Moose Property is located in Burrows and Kemp townships, in the Larder Lake Mining Division of northeastern Ontario. The Jumping Moose Property is located 25 km north of the village of Shining Tree, 75 km south of Timmins and 105 km southwest of Kirkland Lake. The Jumping Moose Property consists of 145 cell claims with an area of approximately 2658 ha and is 7.8 km x 3.8 km in size.
Historical work on the property identified a cluster of large angular and high grade Au-Ag-Te bearing quartz veins boulders on the east side of Jumping Moose Lake in the 1950's. Glacial geology work by the Ontario Geological Survey indicates that the up-ice source of these boulders is to the north (MENDM map M2653, 2001).
Historical shallow drilling to identify the subcropping source of these boulders has intercepted elevated gold in bedrock. Drill hole BA-87-4 drilled by Argentex Minerals in 1987 intersected 1.1 m grading 6.96 g/t Au (MENDM assessment report 41P14SW0060). In 2012, drilling by Abalor Minerals Inc. intersected 4.76 g/t Au over 0.50 m in drill hole JM-12-11 in quartz veinlets in sheared volcanics with 5% pyrite (MENDM assessment report 2.56341, 2015).
In the fall of 2017, IAMGOLD excavated two trenches in the vicinity of an anomalous IP chargeability response. In the spring of 2018, IAMGOLD completed channel sampling of folded quartz veins in sheared gabbro which resulted in 5.50 g/t Au over 3.30 m including 22.8 g/t Au over 0.65 m on Trench #1 (IAMGOLD assessment report dated Aug. 19, 2019). They also found anomalous gold within a sulfide rich banded iron formation with up to 0.578 g/t Au over 0.38 m (IAMGOLD assessment report dated Aug. 19, 2019).
Trench #1 channel sampling assay highlights from sheared gabbro with quartz veining (IAMGOLD assessment report dated Aug. 19, 2019):
- 5.50 g/t Au over 3.30 m, including 22.8 g/t Au over 0.65 m
- 11.462 g/t Au over 0.50 m
- 5.67 g/t Au over 0.48 m
- 5.17 g/t Au over 0.80 m
In 2018, IAMGOLD followed up the channel sampling up with 6 drill holes totalling 1,122 m. Drilling to test Trench #1 at depth resulted in drill hole JM-18-001 with 2.02 g/t Au over 1.0 m and JM-18-004 with 2.30 g/t Au over 0.90 m (IAMGOLD assessment report dated Sept. 2019). Both intervals are in mafic volcanic rock with up to 10% quartz + carbonate + pyrite veins.
* Please note that Grab samples are selective samples and are not necessarily representative of the mineralization hosted on the property.
Pursuant to a mineral property option agreement, the Company can acquire a 100% interest in the Jumping Moose property by:
- incurring an aggregate of $2,700,000 toward exploration on the Jumping Moose property as to $100,000 in the first year, $200,000 in the second year, $400,000 in the third year, and a total of $2,000,000 during years four through six; and
- paying $95,000 to Canadian Gold as to $20,000 within 60 days of closing, $15,000 on the first or before the first Anniversary date, $20,000 on or before the second Anniversary date, and $40,000 on or before the third Anniversary date; and
- issuing an aggregate of $215,000 of common shares in the Company to Canadian Gold as to $20,000 worth of common shares within 60 days of closing, $15,000 worth of common shares on or before the first Anniversary date, $20,000 worth of common shares on or before the second Anniversary date, $40,000 worth of common shares on or before the third Anniversary date, $40,000 worth of common shares on or before the fourth Anniversary date, $40,000 worth of common shares on or before the fifth Anniversary date, and $40,000 worth of common shares on or before the sixth Anniversary date.
Canadian Gold will retain a 1% Net Smelter Return Royalty (NSR) from any commercial production from any Property encumbered by the pre-existing Swain and Decker agreement which consists of a 2% NSR. Furthermore, Canadian Gold will retain a 2% NSR from any commercial production from any unencumbered Property listed in the agreement. In addition, Canadian Gold will be entitled to receive additional payments upon the Company achieving certain milestones, being $1,000,000 in cash upon a NI 43-101 Inferred resource of at least 1,000,000 ounces of gold being confirmed on the Property.
To finance the Company's first 12 months of option payments and exploration work on the Property, the Company also announces it will be undertaking a non-brokered private placement to raise up to $500,000 through the sale of units at $0.10 per unit. Each unit will consist of one common share and one half warrant exercisable at $0.25 per share for 18 months from the date of issue.
Julie Selway, Ph.D., P.Geo. supervised the preparation of the scientific and technical disclosure in this news release. Dr. Selway is the Principal Geologist for J-J Minerals, a mineral exploration consulting firm based in Sudbury, Ontario. Dr. Selway has over 25 years of work experience for academia, government and industry. Dr. Selway's specialties are writing NI 43-101 reports, QA/QC reviews of drill core assays, data compilations and project management. She is the co-author of six NI 43-101 Independent Technical Reports on gold properties in Ontario, six assessment reports on gold properties in Ontario and senior reviewer of seven NI 43-101 Reports on gold properties. Dr. Selway is a Qualified Person ("QP") as defined by National Instrument 43-101. Historical assay results referenced in this disclosure have not been verified by the QP.
ON BEHALF OF THE BOARD
Chief Executive Officer and Director
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of the content of this news release.
No securities regulatory authority has either approved or disapproved of the contents of this news release. The securities being offered have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or any state securities laws, and may not be offered or sold in the United States, or to, or for the account or benefit of, a "U.S. person" (as defined in Regulation S of the U.S. Securities Act) unless pursuant to an exemption therefrom. This press release is for information purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any securities of the Company in any jurisdiction.
Cautionary Note Regarding Forward-Looking Information
This press release contains forward-looking information based on current expectations, including the use of funds raised under the Offering. These statements should not be read as guarantees of future performance or results. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from those implied by such statements. Although such statements are based on management's reasonable assumptions, Superior assumes no responsibility to update or revise forward-looking information to reflect new events or circumstances unless required by law.
Although the Company 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 the Company can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. These statements speak only as of the date of this press release. Actual results could differ materially from those currently anticipated due to several factors and risks including various risk factors discussed in the Company's disclosure documents which can be found under the Company's profile on www.sedar.com.
This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.
SOURCE Superior Mining International Corporation
For further information: Superior Mining International Corp., 646-661-0409