News out this afternoon RAK
Rackla Metals options Astro gold project from Orogen
2022-09-20 12:24 ET - News Release
Also News Release (C-OGN) Orogen Royalties Inc
Mr. Simon Ridgway reports
RACKLA METALS INCREASES LAND HOLDINGS IN THE TOMBSTONE GOLD BELT, NWT WITH AN OPTION ON THE ASTRO PROPERTY
Rackla Metals Inc. has entered into a property option agreement with Orogen Royalties Inc. to purchase a 100-per-cent interest in the Astro gold project in Northwest Territories, Canada. The acquisition expands Rackla's existing claim position in the Tombstone gold belt within the Selwyn basin.
"We're excited to add to our holdings in this gold belt this quality target," states Simon Ridgway, chief executive officer of the company. "We now hold a portfolio of over 35,000 hectares of multiple high-quality exploration targets with significant data to work with in this very prospective gold belt."
Management believes the significance of the recent intrusive-hosted gold discovery made by Snowline Gold Corp. at its Rogue project opens up a great opportunity. Previous exploration programs at various projects within the Tombstone gold belt region targeted the gossanous sedimentary rocks. The Rogue discovery lies within the intrusive body and these rocks in many areas have not seen boots on the ground.
Rackla recognizes that the Astro property is located within the territories of the Sahtu Dene and Metis comprehensive land claim and will continue the positive working relationship established by Orogen.
Astro project history
The Astro project is a 288-square-kilometre exploration property located in the Northwest Territories along the Yukon border, close to the Canol Road. The project was generated from a two-year $1.8-million (U.S.) regional alliance between Orogen and Newmont Mining Corp. that identified gold mineralization associated with an intrusive stock during a regional stream sampling survey. Work on the property identified outcropping gold mineralization in a 10-kilometre-long structural corridor flanking the hornfelsed aureole of the Border granodiorite pluton. Gold mineralization consists of gold-arsenic-antimony-bearing quartz veins, gold-bismuth skarn and gold associated with disseminated sulphides in siltstone.
Surface sampling of showings has returned strong chip-channel results, including 30 metres of 17.7 grams per tonne gold and 18 metres of 3.6 g/t gold. Results from limited reverse circulation scout drilling program completed returned best intercepts of three metres grading 3.1 g/t gold, 7.6 metres grading 0.7 g/t gold and six metres grading 1.1 g/t gold.
Several stream sediment gold anomalies in creeks draining the Border intrusive indicate potential for gold mineralization within the intrusive stocks. See Rackla's website for more detailed information on the Astro project.
Astro project agreement terms
Under the terms of the option agreement, Rackla can earn a 100-per-cent interest in Astro by issuing 120,000 common shares to Orogen on closing of the agreement, incurring $250,000 in exploration expenditures, and making cash payments or issuing common shares to Orogen totalling $382,000 within 12 months. Once these obligations have been satisfied and Rackla exercises its option to acquire the Astro project, Orogen will retain a 2.5-per-cent net smelter return royalty on the project.
The option agreement is subject to TSX Venture Exchange approval.
Qualified person
Bruce Smith, MSc (geology), a member of the Australian Institute of Geoscientists, is Rackla's qualified person as defined by National Instrument 43-101 -- Standards of Disclosure for Mineral Projects. Mr. Smith prepared and approved the technical information contained in this news release.
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