/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE
SERVICES OR FOR RELEASE, PUBLICATION, DISTRIBUTION OR
DISSEMINATION DIRECTLY, OR INDIRECTLY, IN WHOLE OR IN PART, IN OR
INTO THE UNITED STATES./
TORONTO, June 11, 2020 /CNW/ - Central Timmins
Exploration Corp. ("CTEC" or the "Company") (TSXV: CTEC)
reports that, subject to regulatory approval, it has signed an
option agreement with an arm's length private vendor to acquire up
to a 100% interest in the Silver Reef Property located in northwest
British Columbia.
Silver Reef
The Silver Reef Property consists of six mineral tenures that
cover an area of over 4,425 hectares approximately 85 kilometers
north of Hazelton BC. The exploration target at Silver Reef is
similar to the historic and high-grade Silver Standard Mine located
approximately 80 kilometers to the south. At Silver Reef, as with
Silver Standard, the quartz/carbonate veins and stockwork are
associated with a regional shear zone that cuts through the
alteration halo of a large granitic intrusive.
The Silver Reef property is a new discovery where limited
exploration has been carried out to date. A total of 51 rock grab
samples have been collected on the property with the highest-grade
grab sample yielding 1,892 grams per tonne silver, 2.01 grams per
tonne gold, 4.46% lead, and 2.7% zinc from a massive sulphide vein
subcrop. Grab samples are collected as niche samples of rock
material of specific style or character of interest and are not
necessarily representative of the mineralization hosted on the
property.
In 2019, eight shallow packsack drill holes were completed (at
depths ranging from 0.6 to 1.2 meters), with six holes partially
successful in encountering bedrock. Although packsack drilling
yielded generally poor core recoveries, results demonstrated
elevated mineral values ranging from 0.11 to 0.42 grams per tonne
gold, 56.4 to 322.0 grams per tonne silver, 0.12 to 1.0+% arsenic,
225 to 4,850 grams per tonne lead, and 182-712 grams per tonne
antimony. The mineralization has been traced for over 1,500
meters, has a combined width up to 100 meters wide, and is made up
of three zones. The hanging wall zone comprises quartz/calcite
veins and stockwork with a combined width of up to 50 meters wide.
Individual veins range up to 20 meters wide. The main shear
zone is up to 30 meters wide and contains variable amounts of
disaggregated quartz/calcite and sulphide veins. Discontinuous
ferrocrete and gossanous kill zones along the hanging wall contact
of the main structure are up to 20 meters wide and indicate the
presence of veins and stockworks containing massive
sulphides.
Quality Assurance
Graeme Evans, P.Geo is the
qualified person responsible for the Silver Reef Property and has
reviewed, verified and approved the scientific and technical
information in this news release relating thereto.
In 2018, rock grab samples collected were transported for
preparation and analysis to the SGS Mineral Services laboratory in
Burnaby, BC, Canada for multi-elements ICP and fire assays
for gold. In 2019, pack sack drill core and rock grab samples were
transported for preparation and analysis to the ALS Canada Ltd.
laboratory in North Vancouver, BC,
Canada for multi-elements ICP and
fire assays for gold.
Option Agreement Terms
Under the terms of the Option Agreement, the Company can acquire
up to a 70% interest in Silver Reef over a three year option period
by paying to the vendor: $50,000 and 200,000 shares in its capital on the
signing of the agreement; $200,000
and 200,000 shares in its capital on the first anniversary of the
agreement; and $500,000 and 800,000
shares in its capital on the second anniversary of the agreement.
The Company is also required to incur exploration expenditures of
$250,000 before the first anniversary
of the agreement, $750,000 of
cumulative exploration expenditures by the second anniversary of
the agreement and $2 million of
cumulative exploration expenditures by the third anniversary of the
agreement.
Following exercise of the option, the Company has the right for
a period of 120 days to acquire the remaining 30% interest in
Silver Reef, for a 100% total interest, on payment of $7.5 million of which up to $4 million may be paid in shares of the Company
at its election. If the Company elects to not purchase the
remaining 30% interest, the Company and the vendor shall form a
joint venture, with the Company appointed the operator. During the
first three years of the joint venture, the Company will fund the
vendor's participating interest in the joint venture. If the
vendor fails to sell its interest in the joint venture during such
three year period, the vendor's interest will convert to a 3% net
smelter returns royalty, provided that the Company will have the
opportunity to purchase the vendor's interest prior to such
conversion for $7.5 million.
About Central Timmins Exploration Corp.
CTEC is an early-stage Canadian junior exploration company
focused on precious metals exploration and development.
Forward Looking Information
This press release contains "forward-looking information" within
the meaning of applicable securities laws that is intended to be
covered by the safe harbours created by those laws.
"Forward-looking information" includes statements that use
forward-looking terminology such as "may", "will", "expect",
"anticipate", "believe", "continue", "potential" or the negative
thereof or other variations thereof or comparable terminology. Such
forward-looking information includes, without limitation, the
Company's expectations, strategies and plans for the Silver Reef
Property, including the Company's planned expenditures and
exploration activities.
Forward-looking information is not a guarantee of future
performance and is based upon a number of estimates and assumptions
of management at the date the statements are made. Furthermore,
such forward-looking information involves a variety of known and
unknown risks, uncertainties and other factors which may cause the
actual plans, intentions, activities, results, performance or
achievements of the Company to be materially different from any
future plans, intentions, activities, results, performance or
achievements expressed or implied by such forward-looking
information. See "Risk Factors" in the Company's final prospectus
dated October 4, 2018 filed on SEDAR
at www.sedar.com for a discussion of these risks.
The Company cautions that 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 information. Accordingly, investors should not
place undue reliance on forward-looking information.
Except as required by law, the Company does not assume any
obligation to release publicly any revisions to forward-looking
information contained in this press release to reflect events or
circumstances after the date hereof.
Neither the Exchange nor its Regulation Services Provider (as
that term is defined in the policies of the Exchange) accepts
responsibility for the adequacy or accuracy of this release.
SOURCE Central Timmins Exploration Corp