Mr. David Lonsdale reports
UBIQUE MINERALS READIES FOR DRILLING AT DANIEL'S HARBOUR ZINC PROJECT; ANNOUNCES PRIVATE PLACEMENT FINANCING AND VILHJALMUR THOR VILHJALMSSON TO STEP IN AS INTERIM CEO
A diamond drilling contract has been arranged to allow more drilling at Ubique Minerals Ltd.'s Daniel's Harbour zinc project in Newfoundland. Ubique also intends to undertake a non-brokered private placement of flow-through units to raise a minimum of $300,000 and hard dollar units to raise $500,000 to further its exploration and definition of zinc deposits at Daniel's Harbour and general exploration and corporate expenses. Vilhjalmur Thor Vilhjalmsson will join the board of directors and assume the role on an interim basis of chief executive officer. Dr. Gerald Harper, presently chief executive officer, will continue as a director and qualified person for the company.
Ubique's Daniel's Harbour zinc project -- plans for 2021 diamond drilling program
Ubique owns three mineral licences located in the Daniel's Harbour area in Newfoundland, Canada, covering more than six square kilometres in two blocks, and has another four mineral licences covering more than 10 square kilometres under option from Ophir Gold Corp. The Ubique licences cover at least three zones of zinc mineralization, one of which is the P zone where Ubique completed most of its 2017 and 2018 drilling programs, the highlight of which was a true width intersection of 13.6 per cent zinc over 12.2 metres, including 17.43 per cent zinc over 8.6 m. There are now 28 drill holes in this target area with zinc intersections with greater than 4 per cent zinc over at least two m true width. The Ophir option licences cover many areas of the historic mining activity, and research has already identified five high-priority drill target areas where historic drilling intersected zinc mineralization that was never followed up or mined, including a true width interval of 5.73 m of 8.96 per cent zinc in the 1386 zone target. Three of these drill target areas have been relocated (the 1386, 2160 and Nose zones), the historic drill holes identified and new holes confirming the location and grade of mineralization in historic holes plus the holes drilled in 2019 and 2020.
Ubique's drilling will follow up on the 2019/2020 diamond drilling results and extend those identified zones of zinc mineralization. The drilling will target the Nose zone and 1386 zone on the Ophir option licences. These zones are parallel to and close to the former L zone, which was the largest individual deposit mined (approximately three million tonnes) during the historic mine operations. A decline ramp to access the L zone could be dewatered easily and utilized to access the Nose and 1386 zones. Both zones are open to extension updip to the northeast and downdip to the southwest. About 2,000 metres of drilling are planned to extend each of these zones in both directions.
The zinc mineralization intersected is a very pale-coloured sphalerite, characteristic of a low-iron Mississippi-Valley-type carbonate rock, a geological environment analogous to many large deposits in North America. Approximately seven million tonnes averaging 7.8 per cent zinc have been mined from the Daniel's Harbour mine and after concentrating on site were shipped as a very high-grade concentrate from nearby deepwater port facilities to a custom zinc smelter.
The 2017, 2018 and 2020 diamond drilling programs were financially supported, in part, by grants from the government of Newfoundland and Labrador under its junior exploration assistance program. Application has been made for a similar grant to support the 2021 diamond drilling program.
Private placement financing
The Ubique private placement will comprise up to five million flow-through units, each priced at six cents, and 10 million common share units, each priced at five cents. Each flow-through unit will consist of one common share in the capital of Ubique issued on a flow-through basis pursuant to the Income Tax Act (Canada) and one-half of a common share purchase warrant with each whole warrant being exercisable at a price of 7.5 cents per common share for a period of 24 months from the date of issuance.
Each common share unit will consist of one common share in the capital of Ubique and one common share purchase warrant with each whole warrant exercisable at a price of 7.5 cents per common share for a period of 24 months from the date of issuance.
The total private placement common shares will represent 24.06 per cent of the increased share capital of Ubique. Insiders of the company have indicated their interest in participating in this private placement financing. The terms of this private placement are subject to approval by the Canadian Securities Exchange.
The proceeds are intended to be used for a follow-on drilling on Ubique's Daniel's Harbour zinc project including the adjacent Ophir Gold Corp. option property on the island of Newfoundland, Canada, and other exploration. The Ophir option was announced in press releases dated Dec. 6, 2018, and Feb. 14, 2019, and drilling results and drilling plans have been announced in press releases dated Oct. 2, 2018, and subsequently in 2019 and 2020. All these press releases are available from the company website and SEDAR.