VANCOUVER, May 10, 2016 /CNW/ - Intact Gold Corp. (TSX-V:
ITG) (FSE: 1A5) (the "Company" or "Intact Gold"), is pleased to
announce that it has entered into an option agreement dated
May 9, 2016 (the "Agreement")
with Caprock Ventures Corp. ("Caprock") is to acquire a 100%
interest in, and to, certain mineral properties together with the
surface rights, mineral rights, personal property and permits
associated therewith (collectively, the "Belletere Extreme East
Property" and the "Ortona Property" or collectively the
"Properties"), located five kilometres east of the town of
Belleterre, Temiscamingue,
Quebec.
The Ortona Property
The Ortona property is located in the Guillet township and
comprises 15 claims covering an area of 272 hectares. It sits on
the north west border of the previous Belleterre Mine mining
concession and 3 kilometres north west of the Guillet property, to
which Intact Gold has an option to acquire 100%.
The main known showing on this property consists of a gold-bearing
vein with a maximum width of 2.1 metres, located within a shear
zone. Historic channel samples along a 21 meter long section of
this vein returned gold grades ranging from 5.88 to 48.98 g/t Au
(RP190-11). Additional channel
samples along the vein returned gold grades between 2.18 to 78.9
g/t Au on widths between 0.3 metre and 0.7 metre (GM 10617).
The Belleterre Extreme-East property
Comprising 7 mineral claims, the property is located 3 km east
of Belleterre and 60 km east of
Ville-Marie, Temiscamingue,
Quebec, adjacent to Intact Gold's
Guillet property.
Previously, resource estimate was performed in order to evaluate
the gold potential of this project. The results were an estimated
21,178 tons in the indicated category, grading at 6.37 g/t Au and
33,465 tons in the inferred category grading 5.47 g/t Au, for
a total (indicated + inferred) of 54,644 tons of ore grading 5.77
g/t (0.17 Oz/t) Au (from 43-101 Technical Report by Mr.
Donald Théberge, Ing., M.B.A.. in
May 2009).
Additionally, more recent work on the property has identified a
significant gold bearing structural corridor. This is marked by the
presence of quartz-carbonate veins in a fractured fault zone, with
mineralization similar to the Abitibi orogenic-type deposits, such
as the Sigma and Lamaque mines. The most significant results
included a channel sample with 32.23 g/t Au over 2 m, and 21.73 g/t
Au over 0.91 m intersected in drilling. (Rapport Géologique -
Programme de forages 2002, R. Roy
P.Geo, Janvier 2003).
Lying south-east of, and in between the Ortona and Belleterre
Extreme-East properties, JAG Mines Ltd's Belleterre property has identified similarly
mineralized zones associated with weathered intrusive porphyries
and shear zones. Results from grab samples have been up to 27.7 g/t
Au and 37.0 g/t Ag.
Closing of the Agreement is subject to a number of conditions,
including the receipt of the approval of the TSX Venture Exchange
(the "TSX-V").
Anthony Jackson of Intact Gold
comments: "Acquiring both Ortona and Belletere Extreme East is a
positive and exciting step for the Company. The properties are
contiguous to our recent Guillet property acquisition and gives us
a greater presence in this exciting area".
Agreement Terms
Intact Gold will have the option to acquire 100% of the Ortona
and Belletere Extreme East Property in consideration for:
(a)
|
payment to Caprock of
an aggregate amount of $25,000 to be paid upon the
following:
|
|
a.
|
payment to Caprock of
$10,000 upon signing of agreement;
|
|
b.
|
payment to Caprock of
$15,000 upon receipt of TSX-V approval;
|
(b)
|
issuance to Caprock
of 1,500,000 common shares of the Company (each, a "Share") upon
receipt of TSX-V approval; and
|
(c)
|
Intact Gold must
incur $500,000 in exploration expenditures over a period of three
years from date of signing the agreement.
|
The Properties are subject to a 0.5% net smelter royalty (the
"Royalty") on future gold production which includes advance royalty
payments of $25,000 annually on
Dec. 31, beginning in 2020 to
Caprock. The Company has the option at any time to purchase 0.5% of
the Royalty on payment of $500,000 to
Caprock. The original vendors of the Ortona property will retain a
1% NSR Royalty on the Properties. Intact Gold will have the right
to purchase the 1% for $1.0 million.
The original vendors of the Belleterre Extreme East will retain a
3.5% NSR. Intact gold will have the right to purchase the first 2%
for $1 million, and the remaining
1.5% for $750,000 at any
time.
Qualified Person - David
Hladky, P. Geo., is the Qualified Person as defined in
National Instrument 43-101, that has reviewed and approved the
contents of this press release.
ON BEHALF OF THE BOARD OF DIRECTORS OF INTACT GOLD
CORP.
Per: Anthony Jackson,
President and CEO
Disclaimer for Forward-Looking Information
Except for statements of historical fact, this news release
contains certain "forward-looking information" within the meaning
of applicable securities law. Forward-looking information is
frequently characterized by words such as "plan", "expect",
"project", "intend", "believe", "anticipate", "estimate" and other
similar words, or statements that certain events or conditions
"may" occur. Forward-looking information in this press release
includes, but is not limited to, statements regarding expectations
of management regarding the acquisition of the Property. Although
the Company believes that the expectations reflected in the
forward-looking information are reasonable, there can be no
assurance that such expectations will prove to be correct. Such
forward-looking information is subject to risks and uncertainties
that may cause actual results, performance or developments to
differ materially from those contained in the statements including,
without limitation, the risks that the Company may not have the
funds necessary to make its payments pursuant to the Agreement,
that the TSX-V may not approve the transaction, and other factors
beyond the control of the Company. Except as required by law, the
Company expressly disclaims any obligation, and does not intend, to
update any forward-looking information in this news release.
Neither 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.
SOURCE Intact Gold Corp