GTA Resources to focus on Northshore, Big Duck Lake GTA Resources to focus on Northshore, Big Duck Lake
GTA Resources and Mining Inc (C:GTA)
Shares Issued 42,026,855
Last Close 5/1/2017 $0.07
Tuesday May 2 2017 - News Release
Mr. James Macintosh reports
GTA FOCUSES ON HEMLO-SCHREIBER GOLD BELT, ONTARIO; WILL INITIATE PERMITTING STUDIES FOR BULK SAMPLE AT NORTHSHORE AND OPTIONS THE BIG DUCK LAKE GOLD PROPERTY
GTA Resources and Mining Inc. has provided an update on its corporate strategy. GTA intends to concentrate on the world-famous Hemlo-Schreiber Belt in Ontario, where its management team has a considerable amount of experience. The focus will be on its existing Northshore Gold Project and on its newly-optioned Big Duck Lake Gold Property.
Northshore Gold
GTA currently owns 54% of, and is the operator of, Northshore Gold in the Hemlo Camp near Schreiber, Ontario. GTA is finalizing plans to begin the permitting for a large bulk sample from the Afric Zone at Northshore. The purpose of the bulk sample is to further de-risk the project and to obtain metallurgical and economic information regarding the prospect of small-scale mining. The first stage will be initiating permitting and environmental studies.
The Afric Zone hosts Indicated mineral resources of 12.36 million tonnes grading 0.99 grams per tonne ("g/t") of gold at a cut-off grade of 0.50 g/t of gold, representing approximately 391,000 contained ounces of gold and Inferred mineral resources of 29.58 million tonnes of grading 0.87 g/t of gold at the same cut-off grade, representing approximately 824,000 ounces of gold (see the June 2014 NI43-101 report at www.gtaresources.com).
New Property - Big Duck Lake Gold
Expanding on GTA's strong interest in the Hemlo-Schreiber Greenstone Belt, GTA has finalized terms by which it can acquire a 100% interest in the Big Duck Lake Gold Project ("Big Duck Lake").
Big Duck Lake is located roughly 25 km north of Northshore Gold and 100 km west of the Hemlo Gold Mine. It is only 4 km west of the past-producing polymetallic Winston Lake Mine, which produced 2.68 million tonnes of 1.05% copper, 12.05% zinc, 1.07 g/t of gold and 31.37 g/t of silver.
Big Duck Lake consists of 65 claim units over six square kilometres, is within the Hemlo-Schreiber Greenstone Belt, and is centred on an altered gold-rich porphyry which in Management's view is similar to rocks which host the Hemlo Gold Mine mineralization. It contains numerous gold and base metal showings including "Coco-Estelle", which hosts a historic resource* of 53,700 tonnes grading 10.7 g/t of gold per tonne.
GTA can earn a 100% interest in Big Duck Lake by paying to the arm's length vendors $45,000 ($15,000 on Approval) and issuing 750,000 common shares (250,000 on Approval) over a six month period. The Vendors will retain a 2% net smelter return ("NSR") on Big Duck Lake and GTA will have the right to buy back 1% of the NSR for $1,000,000. This transaction is subject to TSX Venture Exchange approval ("Approval").
"Over the next 12 months, GTA will focus its efforts on its gold properties in the Hemlo Gold Belt, in addition to carrying out some follow-up work at Burnt Pond in Newfoundland," stated GTA President and CEO, James Macintosh. "Barrick's extension of operations in the area has led to renewed junior interest in Hemlo."
The Hemlo Camp is one of Canada's most prolific mining regions, having produced over 22 million ounces of gold from both open pit and underground mines. The players are a continually evolving group of companies, including Barrick Gold Corp., Teck Resources Limited and Newmount Mining Corporation, as a well as numerous junior companies.
QA/QC - Wayne Reid, P. Geo., VP Exploration for GTA and a qualified person as defined in National Instrument 43-101, is responsible for this release. He has extensive experience in the exploration for gold and base metals in the Hemlo-Schreiber Greenstone Belt.
* This historic resource is not NI 43-101 compliant and cannot be relied upon.
ABOUT GTA RESOURCES - GTA is a publicly traded mineral exploration company. It is led by an experienced and successful management team and is focused on exploring for gold and zinc in Canada. GTA has 42,026,855 shares outstanding, with its Northshore JV partner Balmoral Resources Inc. holding a roughly 6% interest. The Company's shares trade on the TSX Venture Exchange under the symbol "GTA." The Company currently has two projects located in northern Ontario: the 54% owned Northshore Gold Project, near Schreiber and the 100% owned Auden Project near Hearst. GTA also owns a 100% interest in the Burnt Pond Zinc-Silver Project in central Newfoundland, along strike from Teck Resources Limited's past-producing Duck Pond Mine.