One More Try, this time it might work!!!
Gold'n Futures signs LOI for up to 90% of Hercules
2020-09-22 08:05 ET - News Release
Mr. Theo van der Linde reports
GOLD'N FUTURES ENTERS INTO LETTER OF INTENT WITH ARGONAUT GOLD INC.
Gold'n Futures Mineral Corp. has entered into a non-binding letter of intent with Argonaut Gold Inc. to acquire up to a 90-per-cent interest in the Hercules-Elmhurst property located 120 kilometres northeast of Thunder Bay, Ont., in the townships of Elmhurst and Rickaby, within the Thunder Bay North mining district. The property lies within an Archean greenstone belt that extends from the Longlac area in the east to Lake Nipigon in the west, a distance of about 130 kilometres. The property consists of 372 contiguous claim cells (6,951 hectares).
To date, the work completed on the property forms an extensive database including reconnaissance grab samples; channel samples; a variety of geophysical surveys; and, a drill hole database that includes historic drilling totalling about 450 holes. More than a total of 2,000 grab and channel samples were collected from the property. In the last two field seasons, more than 150,000 square metres of trenches were developed.
In May, 2010, Watts, Griffis and McOuat Ltd. (WGM) was retained by Kodiak Exploration Ltd., the former owners of the property, to produce a National Instrument 43-101 mineral resource (1) currently classified as a historical estimate for the property. The technical report was prepared by WGM for mineralized zones that displayed sufficient data to allow for continuity of geology and grades. The zones included: Golden Mile (GM), Wilkinson Lake gold zone (WLG), Lucky Strike (LS), Marino and 7 of 9. Data are referenced in the attached table, following the definition of historical estimate.
Historical estimate
The historical resource estimate is based on prior data and reports obtained and prepared by previous operators, and information provided by governmental authorities.
(i) A qualified person has not done sufficient work to classify the historical estimate as current mineral resources or mineral reserves.
(ii) The issuer is not treating the historical estimate as current mineral resources or mineral reserves. Establishing a current mineral resource estimate on the property will require further evaluation, which the company and its consultants intend to complete in due course.
Capped Au (g/t) Contained at 60 Contained Category Zone Tonnes uncapped ounces g/t Au) ounces Total indicated Golden Mile & WLGZ 231,800 14.95 111,450 7.64 56,970 Total inferred (2) Golden Mile, WLGZ, Lucky Strike, Marino, 7 of 9 761,300 4.13 101,050 3.04 74,380 Notes (1) The historical estimate referred to as mineral resource, which are not mineral reserves, do not have demonstrated economic viability and may be materially affected by environmental, permitting, legal, title, taxation, socio- political, marketing or other relevant issues. (2) The quantity and grade reported in the historical estimate as inferred mineral resources are uncertain in nature and there has been insufficient exploration to define these resources as indicated or measured, and it is uncertain if further exploration will result in upgrading them to an indicated or measured mineral resource category. (3) The mineral resources were estimated using the CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM standing committee on reserve definitions and adopted by CIM council on Dec. 11, 2005. However, the estimates are over 12 years old and do not reflect current inputs and parameters, and the CIM definition of a mineral resource and is being reported as a historical estimate. (4) The GM trench zone (surface at approximately 345 m) is 10 to 12 m deep and the WLG trench zone (surface at approximately 327 m) is six to eight m deep. (5) Indicated mineral resources for the GM and WLG zones are based on the centroid of a block being a maximum of 15 m from a composite. (6) 0.5 m Au composites were used for grade interpolation and were capped at 60 g/t. (7) A gold price of $850 (U.S.) was assumed. (8) For the historical estimate a minimum horizontal width of 1.5 m and a 1.0 g/t Au cut-off was determined to be appropriate. This cut-off should be looked at in more detail in the next phase of study, as applying a single cut-off grade across all zones may not be appropriate due to the large difference in average grades between the zones.
Property highlights
- Direct road access and large continuous land package:
- In close proximity (about 70 kilometres) to Greenstone Gold Mines' Hardrock deposit (4.2 million ounces).
- Host syn-volcanic Elmhirst Lake intrusion complex (2,736 million annum):
- 13 km by seven km with felsic metavolcanic equivalents;
- Complex system of predominantly granodiorite-(trondhjemite-tonalite) intrusions (GTT) with a central magnetic core of diorite/quartz diorite;
- Extrusive co-magmatic felsic pyroclastics form arcuate apron about Elmhirst Lake intrusion complex (ELIC).
- Hosts over 30 gold-bearing quartz vein/stockwork zones in shears within the ELIC.
Golden Mile
- The jewel of the multiple vein systems;
- Has strike length in excess of 1.6 kilometres;
- Characterized by laminated, sheeted vein system;
- Averages 20.2 grams per tonne gold over 4.0-metre true thickness over a 400 m length;
- Coarse visible gold (electrum) and local gold-bearing base metal mineralization;
- Exceptional surface gold grades:
- Surface channels up 32.96 g/t Au over 11.55 metres; averaging 20.2 g/t Au over an average length of 4.0 metres. Reference: W.M. Kociumbas, PGeo, 2010, WGM, technical review and mineral resource estimate of the Hercules property, May 26, 2010. P-44 S 10.2.1.
- Open, high-grade potential down plunge of the Golden Mile vein system:
- At shallow (50 m) depths and in deeper (450 m) parts of the vein system;
- Five partially outlined gold shoots over a 2.2-kilometre strike length.
- Gold-bearing structures coincide with:
- Strong regional magnetic high and low features for over 3.6 kilometres.
- Similar in geological environment to:
- Renabie mine (1.1 million oz) in the Missinaibi Lake batholith (2,721 million annum);
- Bourlamaque intrusive complex (2,700 million annum), which hosted approximately 4.1 million ounces Au;
- Iamgold's Cote Lake deposit (10 million oz) in the Chester intrusive complex (2,740 million a).
- Upside potential for brownfield development:
- Open structural corridor for 3.6 kilometres;
- Multiple gold shoots;
- A strong resource factor;
- Excellent gold recoveries.
Terms of LOI
The company can earn up to a 50-per-cent interest in the property should the below terms be completed within the four-year period:
Optionee to make the following payments to Argonaut:
- $500,000 on Oct. 15, 2020;
- $750,000 on Oct. 15, 2021;
- $1-million on Oct. 15, 2022;
- $1.25-million on Oct. 15, 2023.
The optionee shall incur $7-million in qualifying exploration expenditures, which will be specified pursuant to qualified technical reports, on the property subject to the following annual minimums:
- $500,000 by Oct. 15, 2021;
- A further $1.5-million by Oct. 15, 2022;
- A further $2-million by Oct. 15, 2023;
- A further $3-million by Oct. 15, 2024.
Once the above conditions are satisfied and the company has earned a 50-per-cent interest in the property, the company will have a further option to earn an additional 40-per-cent interest in the property, the terms of which are to be negotiated. The company will be the operator of exploration programs on the property.
The LOI is non-binding in nature and is subject to due diligence, structuring and customary approval of the shareholders and/or directors of Argonaut.
Commented Theo van der Linde, chief executive officer of the company: "Hercules is an extremely exciting project with a lot of history which can be viewed all over the Internet, as it was selected by the Northwestern Ontario Prospectors Association as the discovery of the year in 2008. We plan on spending the next few months remodelling the deposit incorporating an additional 196 drill hole logs from 2011 not included in the WGM 43-101 report of 2010 as well as performing select downhole surveys. This will provide a much more detailed and accurate model of the deposit as well as an expected increase in the reports mineral resource estimate which utilized an $850 per oz gold price and a one oz/gm. Once complete, we will begin our drilling program. In addition, over the next few months we expect to add significant bench strength to our management team and board of directors. With gold hovering around $2,000 per ounce, these are exciting times for our industry and in particular Hercules."
Qualified person
The scientific and technical content of this press release has been prepared, reviewed and approved by Walter Hanych, PGeo, who is a qualified person under NI 43-101 regulations and is a consultant of the company.
Option issuance
The company also announces that it has granted one million options to a director of the company in accordance with the company's stock option plan. Each option is exercisable to purchase one additional common share of the company at a price of 29.5 cents per share for a period of five years from the date of issuance.
About Gold'n Futures Mineral Corp.
Gold'n Futures Mineral is a Canadian-based exploration company focused on acquiring prospective precious metals properties with the objective of making new discoveries in established gold camps in Canada.
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