Golden Sky Minerals Corp.
(AUEN.V) (the “Company” or “Golden Sky”) is
pleased to announce that, through staking and property purchases,
the Company has acquired the ~11,000-hectare Rayfield Copper-Gold
Property in southern British Columbia, Canada, a Tier 1 mining
jurisdiction. With the acquisition of the ~505-hectare Rayfield 001
and ~80-hectare Owen properties, Golden Sky has consolidated its
Rayfield Property. Both properties are located within the staked
boundary of the Rayfield Property, which will be 100% owned by
Golden Sky with no underlying royalties once the purchase
agreements are complete (see “Transaction Details”). The Rayfield
Project is located in the Quesnel Trough, British Columbia’s
primary copper-producing belt, which hosts Teck Resources’ Highland
Valley Mine, Imperial Metals’ Mount Polley Mine, Centerra Gold’s
Mount Milligan Mine, and Kodiak Copper’s MPD Project (see Figure
1). The Rayfield Copper-Gold Project is located approximately 20
kilometers east of the Town of 70 Mile House, British Columbia, and
is accessible year-round by well-maintained service and logging
roads extending from BC Highway 97 (see Figure 2).
Rayfield Property Highlights
- The Rayfield
Property contains the Late Triassic alkalic Rayfield River Pluton,
speculated to be part of the highly prospective Late
Triassic Copper Mountain Magmatic Belt, which includes the Copper
Mountain, New Afton and Mount Polley copper deposits.
- Historic
exploration on the Property has been largely constrained to a
~505-hectare zone with an extensive copper-gold porphyry system
outlined by soil sampling, drilling, and shallow-penetration
radiometric and IP geophysical surveying. Mineralization in
several historic drillholes extends from surface to end of hole,
which suggests that the mineralized porphyry system remains open to
depth. Previous exploration programs were unable to definitively
identify the exact orientation of the porphyry system, but it is
believed to be striking to the northwest and dipping to the
northeast.
- In 2006, the
Geological Survey of Canada conducted a geophysical survey over the
Rayfield Property that included magnetic and radiometric surveys.
The resulting elevated magnetic and potassic anomalies are
largely underexplored and show similar characteristics to those
signifying other alkalic copper-gold porphyries in the Quesnel
Terrane (see Figure 3 and 4).
- In 1989, a 34
line-kilometer Induced Polarization (IP) survey on the Rayfield
Property outlined several chargeability “high” zones, which were
subsequently tested by drilling programs in 1989, 1990, and 2008.
Importantly, due to the shallow response of the survey
(limited to ~125 m depth), these anomalies are interpreted to
remain open to depth. Golden Sky believes that,
with modern exploration methods, there is significant potential to
discover additional mineralized zones at depth.
- Exploration
drilling on the property from the 1970’s to the early 2000’s
totalled just 60 holes (7,774.2 meters), with the majority of the
holes being shallow percussion holes typically <60 m in depth.
Historic drilling outlined a broad footprint (~450 m x
2,100 m) of low-grade copper mineralization and hydrothermal
alteration suggesting a very robust copper-gold porphyry
system.
- 1970 Exploration
Program: 31 percussion holes totalling 1,748 m
- Drillhole
highlights include: 0.42% Cu over 6.1m
- 1989 Exploration
Program: 8 diamond drillholes totalling 1,141 m
- Drillhole
highlights include: 0.18% Cu and 71 ppb Au over 33.9 m; 0.14% Cu
and 30 ppb Au over 66.7 m
- 1990 Exploration Program: 14 diamond
drillholes totalling 3,337 m
- Drillhole highlights include: 0.13%
Cu and 35 ppb Au over 164 m
- 2008 Exploration
Program: 7 diamond drillholes totalling 1,548.2 m
- Drillhole
highlights include: 0.13% Cu and <10 ppb Au over 67 m
- Many shallow
historical drill intercepts on the Rayfield Property have similar
grades to historic holes reported during early exploration phases
on some neighboring alkalic copper-gold porphyries within the
Quesnel Terrane. Further drilling is warranted to determine if
drilling to date on the Rayfield Property intersected the
higher-grade core of the porphyry system.
John Newell, President and CEO of Golden Sky
Minerals, states, “The Rayfield Copper Gold Property is a quality
project with immediate exploration upside and the potential to
delineate a major copper-gold porphyry system. We are truly excited
about this copper-gold asset and pleased to have secured it through
staking and a property purchase agreement with private individuals.
With the price of copper reaching new all-time highs, we are
hopeful this copper-gold property will complement and add
value to the Company, along with our three other gold projects in
the Yukon.”
Transaction Details
Golden Sky has entered into a property purchase
agreement to acquire a 100% interest in the Rayfield 001 Property,
subject to the approval of the TSX-Venture Exchange and other
customary conditions. The terms consist of:
- A cash payment of C$3,000 upon signing of the agreement;
- A cash payment of C$5,000 30-days after signing of the
agreement;
- 20,000 Golden Sky common shares upon closing of the
transaction.
Golden Sky has also entered into a property
purchase agreement to acquire a 100% interest in the Owen Property
subject to any customary conditions. The terms consist of:
- A cash payment of C$1,000 upon signing of the agreement.
John Newell, President and CEO of Golden Sky Minerals, further
states:
“The acquisition of the contiguous Rayfield 001
and Owen claims extends our Rayfield Project area and is an
excellent strategic fit for Golden Sky Minerals. The Rayfield 001
property is where most of the historical drilling has taken place
in the past and is where the potential for large-scale copper-gold
porphyry mineralization was first defined. The historical work
conducted on Rayfield 001 will act as a staging point in the
property-wide search for the high-grade core areas of the
copper-gold porphyry system.
Golden Sky Minerals believes there is
considerable exploration upside at depth, and in underexplored
areas on the property. We look forward to unlocking this excellent
potential, with a view to potentially make an important
discovery.”
The unprecedented positive market conditions for
copper renders Golden Sky’s 100% control of an easily accessible
copper-gold bearing area within the prolific Quesnel Belt as a
compelling opportunity for our shareholders. Previous drilling
on the property may have missed high-grade core areas of the
copper-gold porphyry system which may exist at
Rayfield. Golden Sky will now apply modern geophysical and
geological exploration techniques to explore the underexplored
Rayfield Property.
Golden Sky is in the planning stage to actively explore and
drill this property in 2021.
Figure 1 Rayfield Copper-Gold
Property Location
Maphttps://www.globenewswire.com/NewsRoom/AttachmentNg/71aeb91f-cf30-4733-aea3-b1d03fa19973
Figure 2 The ~11,000 ha Rayfield
Copper-Gold Project was acquired through staking and property
purchases (Rayfield 001 and Owen properties). Access and
infrastructure are excellent, with proximity to the nearby town of
70 Mile House along Highway 97, and with all-season service road
access to the
property.https://www.globenewswire.com/NewsRoom/AttachmentNg/96b5de30-8f3d-452e-b161-4715f17ec6b9
Figure 3 High-potassium anomalies
outlined from a radiometric survey conducted by the Geological
Survey of Canada (2006). Note the linear potassic high in the
centre of the figure, interpreted to correlate to the ~north-south
trending Rayfield
River.https://www.globenewswire.com/NewsRoom/AttachmentNg/3c68c9d9-3491-4f10-8f4e-adec77235d45
Figure 4 The outlines of
high-potassic anomalies (from Figure 2) overlaying a total magnetic
survey conducted by the Geological Survey of Canada (2006). Note
the anomalies have only been tested by a single historic drillhole
in
1989.https://www.globenewswire.com/NewsRoom/AttachmentNg/0d3417d6-25b8-41ab-98f1-866a8bd07080
About Golden Sky Minerals
Corp.
Golden Sky Minerals Corp. is a Canadian
exploration company which evaluates, acquires, and develops mineral
properties in Canada. The company explores primarily for gold and
copper deposits. The company has three main projects in the White
Gold District located in the Yukon Territory of Canada: The
Hotspot, Bullseye and Lucky Strike properties. All the properties
are 100% owned by Golden Sky with no underlying royalties. The
company is currently planning for, and undergoing permitting of,
drill campaigns for all its properties in the Yukon, and the
recently acquired Rayfield Property, scheduled for later in
2021.
The company was incorporated in 2018 and is
headquartered in Vancouver, British Columbia, Canada. More
information can be found at the Company’s website at
www.goldenskyminerals.com
ON BEHALF OF
THE BOARD
John Newell, President and Chief Executive
Officer
Carl Schulze, P. Geo., Consulting Geologist with
Aurora Geosciences Ltd, is a qualified person as defined by
National Instrument 43-101 for Golden Sky’s exploration projects
and has reviewed and approved the technical information in this
release.
For new information from the Company's programs,
please visit Golden Sky's website at www.GoldenSkyMinerals.com or
contact John Newell by telephone (604) 568-8807 or by email at
info@goldenskyminerals.com or
john.newell@goldenskyminerals.com.
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.
Forward-Looking Statements
Statements contained in this news release that
are not historical facts are “forward-looking information” or
“forward-looking statements” (collectively, “Forward-Looking
Information”) within the meaning of applicable Canadian securities
legislation. In certain cases, Forward-Looking Information can be
identified by the use of words and phrases such as “anticipates”,
“expects”, “understanding”, “has agreed to” or variations of such
words and phrases or statements that certain actions, events or
results “would”, “occur” or “be achieved”. Although Golden Sky has
attempted to identify important factors and risks that could affect
Golden Sky and may cause actual actions, events or results to
differ materially from those described in Forward-Looking
Information, there may be other factors and risks that cause
actions, events or results not to be as anticipated, estimated or
intended, including, without limitation: inherent risks involved in
the exploration and development of mineral properties; the
uncertainties involved in interpreting drill results and other
exploration data; the potential for delays in exploration or
development activities; the geology, grade and continuity of
mineral deposits; the possibility that future exploration,
development or mining results will not be consistent with Golden
Sky’s expectations; accidents, equipment breakdowns, title and
permitting matters; labour disputes or other unanticipated
difficulties with or interruptions in operations; fluctuating metal
prices; unanticipated costs and expenses; uncertainties relating to
the availability and costs of financing needed in the future,
including to fund any exploration programs on its projects; that
Golden Sky may not be able to confirm historical exploration
results and other risks set forth in Golden Sky's public filings at
www.sedar.com. In making the forward-looking statements in this
news release, Golden Sky has applied several material assumptions,
including the assumption that general business and economic
conditions will not change in a materially adverse manner. There
can be no assurance that Forward-Looking Information will prove to
be accurate, as actual results and future events could differ
materially from those anticipated in such statements. Accordingly,
readers should not place undue reliance on Forward-Looking
Information. Except as required by law, Golden Sky does not assume
any obligation to release publicly any revisions to Forward-Looking
Information contained in this news release to reflect events or
circumstances after the date hereof or to reflect the occurrence of
unanticipated events.
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