(TheNewswire)
Vancouver, BC - TheNewswire - December 13, 2023 - Contact Gold Corp. (the “Company” or “Contact Gold”) (TSXV:C ) ( OTC:CGOLF) is pleased to confirm that a wholly-owned subsidiary of Centerra Gold Inc. (“ Centerra ”) (TSX: CG) (NYSE: CGAU) has approved participation in the “Year Two” exploration program at the Company’s Green Springs oxide gold project located on Nevada’s Cortez Trend (“Green Springs”).
The Green Springs project is subject to a four-year, US$10 million earn-in (the “Earn-in”) whereby a wholly-owned subsidiary of Centerra Gold Inc. can, upon satisfaction of certain expenditure and funding conditions, acquire a 70% interest in Green Springs.
“We are pleased to confirm Centerra’s participation in Year 2 of the Earn-in, providing additional validation of the exploration potential at Green Springs, and a pathway to increased exploration across the property in 2024.” said Matt Lennox-King, President & CEO of Contact Gold. “Year 1 of the Centerra partnership was extremely impactful, with multiple exceptional drill intercepts, and the development of compelling new drill targets. In 2023 we expanded the property boundaries, and doubled the area permitted for drilling. We look forward to continuing the partnership with Centerra through 2024 and creating value at Green Springs through aggressively exploring the large number of targets across the property.”
Key Points:
Contact Gold has been advancing Green Springs since 2019 and has drilled 151 holes for 20,797 metres significantly improving the understanding of the geologic setting and controls to gold mineralization in that time. Drilling by the Company has delivered new oxide gold discoveries at the X-Ray and Tango Zones and has extended the historic Mine Trend to the South, where it remains open for further expansion. The Mine Trend at Green Springs is a 3 km long trend of outcropping or shallow oxidized gold mineralization hosted within the Chainman Shale where USMX mined high grade oxide gold in the 1980’s from three small pits, highlighted by the high-grade Echo Zone at the southern end of the Mine Trend. The Company plans to drill the large scale, to date undrilled Whiskey and Foxtrot targets in 2024.
Earn In Terms
Pursuant to the Earn-in, Centerra has an option to acquire a 70% interest in Green Springs for cumulative exploration expenditures of US$ 10,000,000 and aggregate cash payments to the Company of US$ 1,000,000 as follows:
| | Exploration Expenditures | Cash Payment to Contact Gold |
| On signing | | US$ 150,000 (received) |
| On or before the 1 st anniversary date | US$ 1,500,000 (completed) | US$ 175,000 (received) |
| On or before the 2 nd anniversary date | US$ 2,000,000 | US$ 175,000 |
| On or before the 3 rd anniversary date | US$ 2,750,000 | US$ 250,000 |
| On or before the 4 th anniversary date | US$ 3,750,000 | US$ 250,000 |
Contact Gold is the project manager at Green Springs, with exploration led by Contact Gold’s Vice President of Exploration, Vance Spalding.
Upon satisfaction of the US$ 10,000,00 exploration expenditure commitment and payment to Contact Gold of the aggregate US$ 1,000,000 cash payments, the parties will form a joint venture to hold and operate the property, and each party shall proportionately fund future activities at Green Springs or have their interest diluted. Should Contact Gold's interest be diluted to less than 10%, then that interest will convert to a 1.5% Net Smelter Returns Royalty interest. Contact Gold will remain the 100% owner of Green Springs until the completion of all Earn-in requirements.
For further details on the Earn -in with Centerra see Contact Gold news release dated December 9, 2022 .
Green Springs is strategically located 7 km immediately east of the Gold Rock project operated by Calibre Mining Corp. (TSX: CXB; OTCQX: CXBMF) and 20 km southeast of their Pan Mine.
For a location map of the Green Springs project, please click:
https://www.contactgold.com/_resources/news/nr-20221208-Contact-Gold-Project-locaiton-map.jpg
Click Image To View Full Size
Green Springs Property – Targets & Permit Boundaries
Qualified Person and technical disclosure
The scientific and technical information contained in this news release has been reviewed and approved by Vance Spalding, CPG, VP Exploration, Contact Gold, who is a “qualified person” within the meaning of National Instrument 43-101, Standards of Disclosure for Mineral Projects (“NI 43-101”).
Green Springs is an early-stage exploration property and does not contain any mineral resource estimates as defined by NI 43-101 due to insufficient exploration to date to define such a mineral resource estimate. Additional information about Green Springs is summarized in the NI 43-101 Technical Report entitled, “NI 43-101 Technical Report for the Green Springs Project, White Pine County, Nevada, USA” prepared for Contact Gold, with an effective date of June 12, 2020, and dated August 5, 2020, by John J. Read, C.P.G; an independent consultant and qualified person under NI 43-101, and can be viewed under Contact Gold’s issuer profile on SEDAR at www.sedar.com .
About Contact Gold Corp.
Contact Gold is an exploration company focused on making district scale gold discoveries in Nevada. Contact Gold’s extensive land holdings are on the prolific Carlin and Cortez gold trends which host numerous gold deposits and mines. Contact Gold’s land position comprises approximately 117.4 km 2 of target rich mineral tenure hosting numerous known gold occurrences, ranging from early- to advanced-exploration and current gold resources.
Additional information about the Company is available at www.contactgold.com .
For more information, please contact: +1 (604) 449-3361
Matthew Lennox-King – President & CEO
E-mail: info@ContactGold.com
Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy of this release. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.