VANCOUVER, Dec. 13, 2019 /CNW/ - Superior Mining
International Corp. ("Superior Mining" or the
"Company") (TSXV: SUI.H) is pleased to announce that it
has optioned the Jumping Moose Property in the prolific gold
Abitibi Greenstone Belt. Superior has optioned the property from
Canadian Gold Miner Corp. ("Canadian Gold").
Description of the Property
The Jumping Moose Property is located in Burrows and Kemp
townships, in the Larder Lake Mining Division of northeastern
Ontario. The Jumping Moose
Property is located 25 km north of the village of Shining Tree, 75
km south of Timmins and 105 km
southwest of Kirkland Lake. The
Jumping Moose Property consists of 145 cell claims with an area of
approximately 2658 ha and is 7.8 km x 3.8 km in size.
Historical work on the property identified a cluster of large
angular and high grade Au-Ag-Te bearing quartz veins boulders on
the east side of Jumping Moose Lake in the 1950's. Glacial geology
work by the Ontario Geological Survey indicates that the up-ice
source of these boulders is to the north (MENDM map M2653,
2001).
Historical shallow drilling to identify the subcropping source
of these boulders has intercepted elevated gold in bedrock.
Drill hole BA-87-4 drilled by Argentex Minerals in 1987 intersected
1.1 m grading 6.96 g/t Au (MENDM
assessment report 41P14SW0060). In 2012, drilling by Abalor
Minerals Inc. intersected 4.76 g/t Au over 0.50 m in drill hole JM-12-11 in quartz veinlets
in sheared volcanics with 5% pyrite (MENDM assessment report
2.56341, 2015).
In the fall of 2017, IAMGOLD excavated two trenches in the
vicinity of an anomalous IP chargeability response. In the spring
of 2018, IAMGOLD completed channel sampling of folded quartz veins
in sheared gabbro which resulted in 5.50 g/t Au over 3.30 m including 22.8 g/t Au over 0.65 m on Trench #1 (IAMGOLD assessment report
dated Aug. 19, 2019). They also found
anomalous gold within a sulfide rich banded iron formation with up
to 0.578 g/t Au over 0.38 m (IAMGOLD
assessment report dated Aug. 19,
2019).
Trench #1 channel sampling assay highlights from sheared gabbro
with quartz veining (IAMGOLD assessment report dated Aug. 19, 2019):
- 5.50 g/t Au over 3.30 m,
including 22.8 g/t Au over 0.65
m
- 11.462 g/t Au over 0.50 m
- 5.67 g/t Au over 0.48 m
- 5.17 g/t Au over 0.80 m
In 2018, IAMGOLD followed up the channel sampling up with 6
drill holes totalling 1,122 m.
Drilling to test Trench #1 at depth resulted in drill hole
JM-18-001 with 2.02 g/t Au over 1.0 m
and JM-18-004 with 2.30 g/t Au over 0.90
m (IAMGOLD assessment report dated Sept. 2019). Both intervals are in mafic volcanic
rock with up to 10% quartz + carbonate + pyrite veins.
* Please note that Grab samples are selective samples and are
not necessarily representative of the mineralization hosted on the
property.
Option Terms
Pursuant to a mineral property option agreement, the Company can
acquire a 100% interest in the Jumping Moose property by:
- incurring an aggregate of $2,700,000 toward exploration on the Jumping
Moose property as to $100,000 in the
first year, $200,000 in the second
year, $400,000 in the third year, and
a total of $2,000,000 during years
four through six; and
- paying $95,000 to Canadian Gold
as to $20,000 within 60 days of
closing, $15,000 on the first or
before the first Anniversary date, $20,000 on or before the second Anniversary date,
and $40,000 on or before the third
Anniversary date; and
- issuing an aggregate of $215,000
of common shares in the Company to Canadian Gold as to $20,000 worth of common shares within 60 days of
closing, $15,000 worth of common
shares on or before the first Anniversary date, $20,000 worth of common shares on or before the
second Anniversary date, $40,000
worth of common shares on or before the third Anniversary date,
$40,000 worth of common shares on or
before the fourth Anniversary date, $40,000 worth of common shares on or before the
fifth Anniversary date, and $40,000
worth of common shares on or before the sixth Anniversary
date.
Canadian Gold will retain a 1% Net Smelter Return Royalty (NSR)
from any commercial production from any Property encumbered by the
pre-existing Swain and Decker agreement which consists of a 2%
NSR. Furthermore, Canadian Gold will retain a 2% NSR from any
commercial production from any unencumbered Property listed in the
agreement. In addition, Canadian Gold will be entitled to
receive additional payments upon the Company achieving certain
milestones, being $1,000,000 in cash
upon a NI 43-101 Inferred resource of at least 1,000,000 ounces of
gold being confirmed on the Property.
Concurrent Financing
To finance the Company's first 12 months of option payments and
exploration work on the Property, the Company also announces it
will be undertaking a non-brokered private placement to raise up to
$500,000 through the sale of units at
$0.10 per unit. Each unit will
consist of one common share and one half warrant exercisable at
$0.25 per share for 18 months from
the date of issue.
Qualified Person
Julie Selway, Ph.D., P.Geo.
supervised the preparation of the scientific and technical
disclosure in this news release. Dr. Selway is the Principal
Geologist for J-J Minerals, a mineral exploration consulting firm
based in Sudbury, Ontario. Dr.
Selway has over 25 years of work experience for academia,
government and industry. Dr. Selway's specialties are writing NI
43-101 reports, QA/QC reviews of drill core assays, data
compilations and project management. She is the co-author of six NI
43-101 Independent Technical Reports on gold properties in
Ontario, six assessment reports on
gold properties in Ontario and
senior reviewer of seven NI 43-101 Reports on gold properties. Dr.
Selway is a Qualified Person ("QP") as defined by National
Instrument 43-101. Historical assay results referenced in this
disclosure have not been verified by the QP.
ON BEHALF OF THE BOARD
"Brent
Butler"
_________________________
Chief
Executive Officer and Director
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
the content of this news release.
No securities regulatory authority has either approved or
disapproved of the contents of this news release. The securities
being offered have not been, and will not be, registered under the
United States Securities Act of 1933, as amended (the "U.S.
Securities Act"), or any state securities laws, and may not be
offered or sold in the United
States, or to, or for the account or benefit of, a "U.S.
person" (as defined in Regulation S of the U.S. Securities Act)
unless pursuant to an exemption therefrom. This press release is
for information purposes only and does not constitute an offer to
sell or a solicitation of an offer to buy any securities of the
Company in any jurisdiction.
Cautionary Note Regarding Forward-Looking Information
This press release contains forward-looking information based
on current expectations, including the use of funds raised under
the Offering. These statements should not be read as
guarantees of future performance or results. Such statements
involve known and unknown risks, uncertainties and other factors
that may cause actual results, performance or achievements to be
materially different from those implied by such statements.
Although such statements are based on management's reasonable
assumptions, Superior assumes no responsibility to update or revise
forward-looking information to reflect new events or circumstances
unless required by law.
Although the Company believes that the expectations and
assumptions on which the forward-looking statements are based are
reasonable, undue reliance should not be placed on the
forward-looking statements because the Company can give no
assurance that they will prove to be correct. Since forward-looking
statements address future events and conditions, by their very
nature they involve inherent risks and uncertainties. These
statements speak only as of the date of this press release. Actual
results could differ materially from those currently anticipated
due to several factors and risks including various risk factors
discussed in the Company's disclosure documents which can be found
under the Company's profile on www.sedar.com.
This press release contains "forward-looking statements"
within the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E the Securities Exchange Act of 1934, as
amended and such forward-looking statements are made pursuant to
the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995.
SOURCE Superior Mining International Corporation