West Vancouver, British Columbia--(Newsfile Corp. - May 11, 2016) - Magnum Goldcorp Inc. (TSXV: MGI) (the
"Company" or "Magnum") announces that, subject to regulatory approval, the Company intends to proceed with a flow through and a
non-flow through non-brokered private placement. Under the flow through private placement (the "FT Private Placement"), the Company
intends to raise up to $400,000 by the issuance of 5,000,000 flow through shares (the "FT Shares") at $0.08 per FT Share. Under the
non-flow through private placement (the "NFT Private Placement"), the Company intends to raise up to $325,000 by the issuance of
5,000,000 non-flow through units (the "NFT Units") at $0.065 per NFT Unit. Each NFT Unit will consist of one common share and one
share purchase warrant, with each warrant entitling the holder to purchase an additional common share for a period of 2 years at an
exercise price of $0.10. With respect to these private placements, the Company may pay finders' fees in the amount of 10% (payable
in non-flow through shares or cash), based on the sale of the FT Shares and NFT Units purchased by subscribers introduced to the
Company by such finders.
The proceeds from this Private Placement will be used for Magnum's 2016 exploration drill program on its "LH Property" and for
general working capital. The LH Property is a gold exploration property consisting of 19 contiguous crown granted claims and 7
mineral claims, located approximately 7 km south of Silverton, British Columbia, on the east side of Slocan Lake. As announced
April 27, 2016, Magnum now owns 100% of the LH Property.
Magnum's 2016 exploration drill program is expected to commence early this summer. The planned program proposes additional
testing of high grade gold mineralization previously identified and associated with the underground workings of the LH Mine and/or
along the Ridge Zone. The proposed drill program will be comprised of a series of fanned holes drilled along multiple azimuths from
two locations approximately 25 - 30 m north of the surface projection of the underground workings. The proposed series of
relatively shallow holes is expected to provide:
a. further evaluation of an interpreted series of high grade, gold-bearing zones,
b. extension of the mineralized zone(s), east and west along strike and to depth, and
c. provide sufficient high grade, gold-bearing intercepts sufficiently spaced in three dimensions to calculate an initial NI 43-101
compliant Resource Estimate.
By way of background, Magnum's August 2015 program produced impressive analytical results from its very successful
helicopter-supported drill program on its LH Property, which results included 16.9 m of 13.58 g/t, including 10.9 m of 20.61 g/t,
and as well, 11 m of 20.66 g/t. As part of Magnum's 2015 exploration efforts, the drill program targeted high grade gold
mineralization previously identified in the LH underground workings.
The objective of the 2015 program was to confirm high grade gold mineralization reported from both previous drilling and
underground chip sampling by previous operators. Previous work was interpreted to suggest gold-bearing mineralized zones are
associated with intervals having elevated sulphide content. For more information, refer to the Company's NI 43-101 report dated
March 9, 2016, as filed on SEDAR and available on the Company's website. As the mineralized zone has been complicated by subsequent
small offsets, drill step-outs were kept relatively small to provide successive mineralized intercepts. Despite proximity to the
underground workings, the 2015 drill program was very successful in providing numerous, high grade, gold-bearing mineralized
intercepts. Highlights reported from the 2015 drill holes (see the Company's August 18, 2015 News Release for a full list of
intercepts reported) include the following high grade, gold-bearing intercepts >10 grams / tonne (g/t):
| |
Interval* |
|
Gold (Au) |
| Drill Hole |
From
(metres) |
To (metres) |
Length
(metres) |
ICP
(g/t) |
Gravimetric (g/t) |
| LH15-31 |
21.00 |
37.90 |
16.90 |
13.58 |
14.31 |
| Including |
27.00 |
37.90 |
10.90 |
20.61 |
21.75 |
| Including |
34.00 |
35.00 |
1.00 |
175.00 |
187.00 |
| LH15-32 |
15.63 |
73.00 |
57.37 |
3.81 |
3.73 |
| Including |
19.00 |
20.00 |
1.00 |
14.70 |
20.00 |
| Including |
20.00 |
21.00 |
1.00 |
27.50 |
29.70 |
| Including |
26.00 |
27.00 |
1.00 |
30.20 |
6.85 |
| Including |
42.00 |
43.00 |
1.00 |
15.60 |
11.50 |
| Including |
50.00 |
51.00 |
1.00 |
11.90 |
14.70 |
| Including |
51.00 |
52.00 |
1.00 |
11.60 |
13.20 |
| Including |
52.00 |
53.00 |
1.00 |
52.90 |
56.00 |
| LH15-34 |
15.95 |
20.23 |
4.28 |
5.64 |
6.16 |
| Including |
20.00 |
20.23 |
0.23 |
14.30 |
8.93 |
| LH15-36 |
18.00 |
23.47 |
5.47 |
10.20 |
12.59 |
| Including |
20.00 |
23.47 |
3.47 |
15.89 |
19.59 |
| Including |
21.00 |
22.00 |
1.00 |
49.70 |
63.60 |
| LH15-37 |
6.00 |
15.34 |
9.34 |
7.08 |
6.45 |
| Including |
6.30 |
11.00 |
5.00 |
12.86 |
11.66 |
| Including |
6.00 |
7.00 |
1.00 |
14.30 |
11.30 |
| Including |
9.00 |
10.00 |
1.00 |
31.40 |
30.10 |
| |
| |
Interval* |
|
Gold (Au) |
| Drill Hole |
From
(metres) |
To (metres) |
Length
(metres) |
ICP
(g/t) |
Gravimetric (g/t) |
| LH15-38 |
28.00 |
39.00 |
11.00 |
20.66 |
20.76 |
| Including |
28.00 |
29.00 |
1.00 |
14.30 |
17.50 |
| Including |
30.00 |
31.00 |
1.00 |
10.90 |
9.57 |
| Including |
31.00 |
32.00 |
1.00 |
53.00 |
69.50 |
| Including |
32.00 |
33.00 |
1.00 |
132.00 |
114.00 |
| |
66.00 |
81.00 |
15.00 |
3.00 |
2.78 |
| Including |
78.00 |
79.00 |
1.00 |
35.60 |
32.10 |
| LH15-39 |
8.00 |
9.00 |
1.00 |
22.60 |
22.10 |
| LH15-40 |
10.10 |
10.36 |
0.26 |
10.00 |
11.00 |
| |
11.00 |
14.00 |
3.00 |
13.53 |
14.28 |
| Including |
11.00 |
12.00 |
1.00 |
25.00 |
33.60 |
| Including |
12.00 |
13.00 |
1.00 |
14.20 |
7.76 |
| |
26.00 |
62.00 |
36.00 |
5.92 |
5.97 |
| Including |
26.00 |
27.00 |
1.00 |
13.40 |
12.90 |
| Including |
30.00 |
31.00 |
1.00 |
16.40 |
18.40 |
| Including |
32.00 |
33.00 |
1.00 |
48.50 |
46.10 |
| Including |
33.00 |
34.00 |
1.00 |
63.90 |
47.60 |
| |
|
|
|
|
|
* True Width not known at this time
The LH Property is subject to certain net smelter return royalties.
This news release has been reviewed and approved by Rick Walker, P. Geo., who is acting as the Company's Qualified Person for
the LH Property project, in accordance with regulations under NI 43-101.
For further information, contact Mr. Clive Shallow, Shareholder Communications, at 604-922 2030 or visit the company's website
at www.magnumgoldcorp.com.
Magnum Goldcorp Inc.
"Douglas L. Mason"
_________________________________
Douglas L. Mason, CEO
Neither the TSX Venture Exchange nor its Regulation Services provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release includes certain statements that may be deemed “forward-looking statements” within the meaning of
applicable securities legislation. All statements, other than statements of historical facts, that address such matters as future
exploration, drilling, exploration activities, potential mineralization and resources and events or developments that the Company
expects, are forward looking statements and, as such, are subject to risks, uncertainties and other factors of which are beyond the
reasonable control of the Company. Such statements are not guarantees of future performance and actual results or developments may
differ materially from those expressed in, or implied by, this forward-looking information. Factors that could cause actual results
to differ materially from those in forward-looking statements include such matters as market prices, exploitation and exploration
results, continued availability of capital and financing, and general economic, market or business conditions. Any forward-looking
statements are expressly qualified in their entirety by this cautionary statement. The information contained herein is stated as of
the current date and subject to change after that date and the Company does not undertake any obligation to update publicly or to
revise any of the forward-looking statements, whether as a result of new information, future events or otherwise, except as may be
required by applicable securities laws.
