JZR GOLD COMMENCES BULK SAMPLING ON THE VILA NOVA GOLD PROJECT IN AMAPA STATE, BRAZIL
JZR Gold Inc. has been advised by Eco Mining Oil & Gaz Drilling and Exploration Eireli, its joint venture royalty agreement counterparty and the operator of the Vila Nova gold project located in Amapa state, Brazil, that the 800-tonne-per-day bulk sampling gravimetric mill located on the property is now operating and processing material on the property.
The mill was manufactured in Brazil by Brastorno, a respected manufacturer of specialized mining equipment and assembled by Eco under Brastorno's supervision.
The company has also been advised that Eco has received all applicable permits from the regulatory authorities in Brazil with respect to operating the mill to process tailings and bedrock on the property.
The mill has the capacity to process 800 tonnes of tailings and bedrock per day.
The property has a long history of alluvial mining in the deeply saprolitized bedrock consisting of banded gold-bearing iron formations and exhalative gold zones. Some hard rock was also produced.
Commencement of operations on the property represents the achievement of a significant milestone for the company. As previously disclosed, in 2020, the company became a party to a joint venture royalty agreement dated July 6, 2020, as amended, with Eco. Pursuant to the terms of the joint venture royalty agreement, the company had the option and right to acquire a 50-per-cent net profit interest in the project, subject to making certain payments to Eco totalling $6-million (U.S.). To date, the company has paid an aggregate of $6-million (U.S.) to Eco to advance the project and to construct the mill.
The technical information in this news release has been prepared in accordance with National Instrument 43-101, Standards of Disclosure for Mineral Projects, and reviewed and approved by Dr. Stewart A. Jackson, PGeo, a qualified person under NI 43-101 and independent of the company. The company does not report any resources or reserves on the property and has not prepared a preliminary economic assessment for the purposes of proceeding with any bulk sampling on the property.
Further to the company's news release dated Oct. 28, 2022, wherein it announced the closing of an offering of units at a price of 65 cents per unit, the company wishes to disclose that the portion of the cash finders' fees that were paid to registered persons in connection with the unit offering was $3,900 and not $1,950. In addition, the company discloses that, pursuant to the aforementioned offering, it issued 115,384 units to insiders and not 76,923 units as previously disclosed. The company is exempt from the formal valuation requirement in Section 5.4 of MI 61-101 as it relied upon Section 5.5(a) that the fair market value of the transaction, insofar as it involved interested parties, did not exceed 25 per cent of the company's market capitalization. Additionally, the company is exempt from the minority shareholder approval requirement set out in Section 5.6 of MI 61-101 as the company relied upon the exemption set out in Section 5.7(1)(a) that the fair market value of the transaction, insofar as it involved interested parties, did not exceed more than 25 per cent of the company's market capitalization.