ROUYN-NORANDA, QC, Feb. 28, 2019 /CNW Telbec/ - X-Terra Resources Inc. (TSXV: XTT) (FRANKFURT: XTR) ("X-Terra") is pleased to announce that it has received the final till sample results stemming from its due diligence review in October 2018 on the Northwest property in New Brunswick from IOS Services Geoscientifiques. Three targeted areas were selected for follow up of the New-Brunswick Government till sampling (Parkhill, M.A. 2005 Till Geochemistry of the Kedgewick, Gounamitz River, States Brook and Menneval Map Areas, Northwestern New Brunswick. New Brunswick Department of Natural Resources, Minerals, Policy and Planning Division, Open File Report 2005-4) in an effort to link the existing gold bearing quartz veins (Rim/Dome/Bonanza).
The results have highlighted a significant 65 gold grain anomaly in the vicinity of the Dome and Bonanza veins, from which two dispersion trains are stemming toward the East-north-east and North-east, related to two distinct glacial events. A third cluster of anomalous samples is located to the south-east of the veins. While the gold grain counts are partially lower, they remain a sharp contrast to the almost sterile background. Gold grains are overwhelmingly dominated by pristine morphology, suggestive of a local origin. The Rim area of the Northwest property being located at the eastern limit of the survey, it remains open to be tested. See map 1.
The best exploration results obtained by X-Terra over the Northwest Property include 1,205.06 g/t Au at the Rim sector, 149.97 g/t Au at the Bonanza sector and 47.88 g/t Au at Dome sector. See map 2.
Additionally, X-Terra sampled the Rim vein at regular intervals at the surface over 19.9 metres to confirm if gold mineralization is continuous. The average of the nine (9) grab samples returned 125.44 g/t Au over the 19.9 metres (see X-Terra press release dated Dec. 5, 2018, for details).
These results are very encouraging given that gold grain counts in dispersion trains are well contrasted with background, enabling dependable detection of mineralized veins.
In other news, X-Terra announces that it will effect a non-brokered private placement in a maximum amount of $1,000,000 by issuing a maximum of 8,333,334 units at a price of $0.12 per unit. Each of the units will consist of one common share in the capital of X-Terra Resources and one common share purchase warrant. Each warrant will entitle its holder to purchase one additional common share of X-Terra Resources at an exercise price of $0.20 for a period of 24 months from the closing date of the private placement. The closing of the private placement is expected to take place on or about March 15, 2019. X-Terra may pay finder's fees to registered persons in connection with the private placement.
Alex McKay, P. Geo of AMK Geoscience Ltd, registered in the Provinces of Nova Scotia and New-Brunswick, a consultant to X-Terra Resources, is the independent qualified person for the Grog Brook, Rim, Dome and Bonanza properties under National Instrument 43‑101 Standards of Disclosure for Mineral Projects ("NI 43-101") responsible for the technical contents of this news release, and has approved the disclosure of the technical information contained herein.
About X-Terra Resources Inc.
X-Terra Resources is a resource company focused on acquiring and exploring precious metals and energy properties in Canada.
This news release contains statements that may constitute "forward-looking information" within the meaning of applicable Canadian securities legislation. Forward-looking information may include, among others, statements regarding the future plans, costs, objectives or performance of X-Terra, or the assumptions underlying any of the foregoing. In this news release, words such as "may", "would", "could", "will", "likely", "believe", "expect", "anticipate", "intend", "plan", "estimate" and similar words and the negative form thereof are used to identify forward-looking statements. Forward-looking statements should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether, or the times at or by which, such future performance will be achieved. No assurance can be given that any events anticipated by the forward-looking information will transpire or occur, including the closing of the private placement, the acquisition of the Grog and Northwest Properties, the development of the Grog and Northwest Properties, or if any of them do so, what benefits X-Terra will derive from the Grog and Northwest Properties. Forward-looking information is based on information available at the time and/or management's good-faith belief with respect to future events and are subject to known or unknown risks, uncertainties, assumptions and other unpredictable factors, many of which are beyond X-Terra Resources' control. These risks, uncertainties and assumptions include, but are not limited to, those described under "Financial Instruments" and "Risk and Uncertainties in X Terra's Annual Report for the fiscal year ended December 31, 2017, a copy of which is available on SEDAR at www.sedar.com, and could cause actual events or results to differ materially from those projected in any forward-looking statements. X-Terra does not intend, nor does X-Terra undertake any obligation, to update or revise any forward-looking information contained in this news release to reflect subsequent information, events or circumstances or otherwise, except if required by applicable laws.
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SOURCE X-Terra Resources Inc.
For further information: X-Terra Resources Inc., Mr. Michael Ferreira, President & Chief Executive Officer, 139 Québec Avenue, Suite 202, Rouyn-Noranda, Québec, J9X 6M8, Telephone: 819-762-4101, Fax: 819-762-0097, E-mail: [email protected]