Taiga Gold options out 60% of SAM project
2020-08-27 17:49 ET - News Release
Mr. Tim Termuende reports
TAIGA EXECUTES OPTION AGREEMENT ON SAM GOLD PROJECT
Taiga Gold Corp. and a private B.C. company (PrivCo) have executed a formal agreement, whereby PrivCo has the exclusive option to earn a 60-per-cent interest in Taiga's 100-per-cent-owned SAM project located 15 kilometres east of Flin Flon, Man., and 10 km northwest of the past-producing Flexar and Birch Lake mines. The 1,000 ha property is located within the Amisk Group Volcanic Belt and is considered to have significant potential to host both orogenic gold and volcanogenic massive sulphide ("VMS") mineralization. The property is contiguous with Cameco and SSR Mining Inc. (formerly Silver Standard Resources Inc.). The entire region is located within the Trans-Hudson Corridor, a geological belt which has historically been significantly under-explored in Saskatchewan.
SAM Option Agreement Details
Under terms of the agreement, PrivCo has the exclusive option to earn up to a 60% interest in the Property over a four year period by making cash payments totaling $CDN 500,000; issuing to Taiga 1,000,000 voting class common shares and completing $CDN 4,000,000 in exploration expenditures. Taiga will retain an over-riding 2% NSR on the property and will serve as project operator until the completion of the 60% earn-in by PrivCo.
A summary map outlining pertinent features of the property may be found here
SAM Property History and Geology
The property is dominantly underlain by the Amisk Group Collage which forms a major greenstone belt that hosts gold deposits and the majority of base metal deposits in the Flin Flon - Snow Lake areas. Seven documented mineral occurrences are reported on the property including both orogenic gold and VMS style copper-zinc mineralization.
Historical work includes geologic mapping, trenching, soil surveys, airborne and ground geophysical surveys, and 71 short drill holes (6496m total). The first documented work on the property was in 1952-56 when Hudson Bay Exploration completed 43 drillholes targeting VMS mineralization identified by ground EM survey anomalies. Other drill programs in 1978-80 (Granges), 1985 (SMDC) and 2000 (Aur Resources) focused on both VMS and gold targets. St. Eugene Mining completed a heliborne VTEM geophysical survey in 2011. The property was acquired in 2015 by Eagle Plains Resources and later transferred to Taiga as part of a plan of arrangement completed in April 2018.
Taiga completed fieldwork on the property in 2018 including geological mapping, prospecting, rock sampling and soil geochemical surveys, focusing on targets generated by a comprehensive geological compilation of all existing historic data. Historical drill collar locations were surveyed by GPS and a total of 783 soil samples and 59 rock samples were collected. The property area was expanded by staking in 2020.
In 2020, Taiga completed fieldwork including soil geochemical sampling, geological mapping and prospecting. Results of this work are pending.
Historical trench sampling of the Wolverine Zone reportedly returned 24.61 g/t gold over 1.0m (Saskatchewan Mineral Deposit Index "SMDI" 2226), while Golden Bear trenches reported values ranging from trace quantities to a high of 9.61 g/t gold over 1.55m (SMDI 2558).
Much of the historical work was focused on VMS style mineralization though Taiga management considers the project to hold considerable potential for the presence of structurally controlled gold mineralization, which will be the focus of future work. Mineralization at the SAM has been defined over a strike length of 200 m, a width of up to 50 m and has been traced to a depth of 200 m by 19 drill-holes. Gold grades vary with the highest grades associated with sections that contain significant sphalerite. Highlights from historic SAM zone drilling include:
DDH # Depth (m)Width(m)Au(g/t)Cu(%)Zn(%) SAM 68-8045-47.1 2.1 2.56 3.26 0.18 SAM 70-8028-29.6 1.6 1.65 4.48 0.24 SAM 72-8069.3-71.72.5 1.85 5.52 0.33
Mineralization is open to depth and limited drill testing of the prospective conductive trend west and east of the SAM zone intersected low grade sulphide mineralization.
Management cautions that past results or discoveries on proximate land are not necessarily indicative of the results that may be achieved on the subject properties. The technical information presented above is repeated for historical reference only and cannot be relied upon as the Company's QP, as defined under NI-43-101 has not prepared nor verified the historical information. All drill intercepts are drill indicated lengths. Insufficient technical information exists to demonstrate the true widths of these intersections. All of the technical information is derived from public documents available through the Saskatchewan Government Ministry of the Economy.
Technical information in this news release has been reviewed and approved by C.C. Downie, P.Geo., a director and officer of Taiga Gold Corp., hereby identified as the "Qualified Person" under N.I. 43-101.
About Taiga Gold Corp
Taiga Gold Corp was created through a plan of arrangement with Eagle Plains Resources Ltd. and owns 5 projects targeting gold in the area near the Seabee Gold Operation, owned and operated by SSR Mining. Taiga's flagship "Fisher" property is currently being explored by SSR Mining under option from Taiga.
Taiga's objective is to focus on the exploration and development of its gold projects located adjacent to the Seabee Gold Operation and along the Tabbernor Fault structure in eastern Saskatchewan, a highly-prospective mining jurisdiction which was recently recognized by the Fraser Institute as one of the highest-rated jurisdictions in the world in terms of Investment Attractiveness. Throughout the exploration and development process, our mission is to help maintain prosperous communities by exploring for and discovering resource opportunities while building lasting relationships through honest and respectful business practices.