TORONTO, Nov. 30, 2017 /CNW/- Orefinders Resources
Inc. ("Orefinders" or the "Company") (TSX.V: ORX) is pleased to
announce that it has entered into agreements for a series of three
acquisitions of contiguous properties from two individual
landholders and from Premet Inc., a private company. All properties
are in the Abitibi's Shining Tree district of Ontario. All of the patented leases and mining
claims comprising these three acquisitions will be 100% owned by
Orefinders and are adjacent to Tahoe Resources Inc.'s Juby Gold
Project.
Orefinders is acquiring the following assets:
1. Premet Inc.'s assets include 100%
ownership of:
- 7 proximate properties, including 5 former producing mines in
the Minto Mine, Tyrenite Mine, Duggan Mine, Mann Mines, and the
MacMurchy, Fawcett, and Corona
claims
- Several of the properties host very high grade and/or long gold
mineralization intercepts as demonstrated by drill results between
2010 and 2013, notably on the Minto Mine:
-
- 13.3 gpt Gold (11.0 gpt if cut to 31.1 gpt) over 82.5 metres
in drill hole MC-09-01 (Creso Exploration news release
August 9, 2010)
- 18.2 gpt Gold (7.9 gpt if cut to 31.1 gpt) over 65.7 metres
and 4.61 gpt Gold (3.5 gpt if cut to 31.1 gpt) over 79.6 metres in
drill hole MC-09-02 (Creso Exploration news release
June 8, 2010)
- 1.01 gpt Gold over 192.0 metres, including 5.04 gpt Gold
over 24.4 metres in drill hole MC-11-11 (Creso Exploration news
release May 11, 2011)
- 1.15 gpt Gold over 280 metres, including 5.2 gpt Gold over
3.44 metres, 3.2 gpt Gold over 5.47 and 3.4 gpt Gold over 41 metres
in drill hole MC-10-03b (Creso Exploration news release
October 29, 2010)
- Duggan Mine's near-surface intersections include:
-
- 1.52 gpt Gold over 75.5 metres in drill hole D3-07
(Creso Exploration news release June 8,
2011)
- 2.20 gpt Gold over 34.50 metres including 40.0 gpt Gold over
1.0 metre in drill hole CD13-03 (Creso Exploration news release
February 14, 2013).
- 1.5 gpt Gold over 80.9 metres, using metallic screen assay
method, from CD13-03 (Creso Exploration news release
March 13, 2013)
- The silver-cobalt Mann Mine includes:
-
- 181.2 gpt Silver over 28.75 metres (Creso Exploration
news release December 14, 2011)
- Over 30,000 metres of historical drilling on properties listed
above
- Historical Estimates on several properties (refer to
historic estimates disclosure below):
-
- Minto: 225,000 tonnes @ 6.9 gpt Gold (MNDM:
MDI41P10NW00006)
- Tyrenite: From 1939 to 1942 the mine produced 203,000 tonnes at
a recovered grade of 5.04 gpt Gold. Historic resource of
472,000 tonnes @ 6.9 gpt Gold (MNDM: MDI41P11NE00013)
- Duggan: 1.01 million tonnes @ 2.40 gpt Gold (MNDM:
MDI41P11NE00023)
- Corona: Production 22,000 tonnes @ 3.77 gpt Au (1939;
MNDM : MDI41P11NE0002
- Substantial mining infrastructure including a mine shaft
rehabilitated in the 1990's, a headframe, skip and hoist, a core
shack with core, ramp, and 6 on-site buildings.
- The Premet total Land Package is 1,813 hectares on 14 patented
leases and 37 mining claims all of which are accessible by car via
Highway 560
2. The 'Porphyry Lake' Claims
(independent of the Premet acquisition)
- These 28 claims cover 612 hectares and host breccia like those
intersected at the Minto Mine which is located immediately to the
west
- Wide near surface drill intercept in porphyry intrusives:
-
- 1.57 gpt Gold over 25.5 metres* in hole PL-3, and
- a separate high-grade intersection in PL-3 of 36.1 gpt Gold
over 1.5 metres (DDH report by J.S.
Walker, 4 July 1998)
3. The 'Tyrenite Mine Extension'
Claims (independent of the Premet acquisition)
- 2 key claims which abut and form the extension of the Tyrenite
Mine's mineralization
- Claims hold significant exploration potential as only shallow
drilling has been completed and the property has not been tested to
the same depths as the Tyrenite Mine
- Significant mineralized intersections:
-
- 6.23 gpt Gold over 1.83 metres, in hole 1316-40 (MNDM AFRI:
41P11NE0011)
- 3.53 gpt Gold over 3.66 metres, in hole 1316-41 (MNDM AFRI:
41P11NE0011)
Note on mineralized core intervals versus actual estimated
mineralized widths: The Minto Zone is a near vertical breccia
pipe and the drill holes referred to above are all steeply plunging
and as such intersections are not true width. The exact geometry
and hence the true width of the mineralized zones cannot be
assuredly concluded at this time and therefore core lengths are
reported.
Orefinders Shining Tree Consolidation
Orefinders views
the Shining Tree District as a significantly underexplored and a
not well understood region of Ontario's Abitibi which holds great potential
for a district scale mining camp. Orefinders' Shining Tree
consolidated land package now includes 67 claims, 14 patented
leases covering over nearly 2,348 hectares and makes the Company a
significant mineral landholder in the region.
Previous fragmented ownership of the properties which were owned
by groups with limited access to capital for exploration and
development has given rise to Orefinders opportunity to
consolidate. With the acquisition of this consolidated land
package Orefinders will now unify the extensive data which has been
compiled on the various properties into a single cohesive model and
can allocate the technical expertise and capital required to unlock
the potential of its Shining Tree properties.
"The Orefinders team has been working on this complex
transaction for some time now. It has involved numerous properties
and multiple vendors to bring a fragmented area into a cohesive
land package of which Orefinders now owns 100%. The core assets are
all contiguous, gold focused properties, which have had a
significant amount of work completed by previous owners. In
addition to these core gold assets, we also acquired the
Mann-Bartlett Mines which are former producing Cobalt / Silver
Mines but not a current focus for Orefinders. Given the recent
popularity of Cobalt metal, we've had significant interest to vend
or join venture these assets," said Stephen
Stewart, CEO of Orefinders. He continued, "With the
Mirado Project and its Preliminary Economic Assessment expected to
be completed very soon, we felt that combining these two groups of
assets into a single vehicle would create further value for
stakeholders. We think that the outstanding gold
intersections we've seen on the former Minto Mine and Duggan Mine,
together with the mining infrastructure in place on the Tyrenite
property, create a value proposition for our shareholders and we
are confident about the Company's future prospects."
![Orefinders Shining Tree Consolidation Map (CNW Group/Orefinders Resources Inc.) Orefinders Shining Tree Consolidation Map (CNW Group/Orefinders Resources Inc.)](https://mma.prnewswire.com/media/613028/Orefinders_Resources_Inc__Orefinders_Announces_a_Transformationa.jpg)
Shining Tree Asset Presentation on Orefinders.ca
Given
the extensive history and work completed including drill results
and mine infrastructure on Orefinders Shining Tree properties the
Company encourages investors to view our 'Shining Tree District
Presentation' on Orefinders.ca.
Terms of the Acquisition
To acquire 100% of Premet
shares and warrants, Orefinders will be issuing 22,759,246 shares
and 3,412,987 warrants. To acquire 100% of interest in the
Tyrenite Extension and the Porphyry Lake claims, Orefinders will be
issuing 5 million shares from its treasury. All properties which
Orefinders is acquiring are subject to existing and various legacy
royalties. Closing of the acquisitions remains subject final
approval of the TSX Venture Exchange, as well as certain other
conditions as are customary in transactions of this nature.
Mirado's NI 43-101 Resource Estimation and PEA
Update
Orefinders would also like to provide an update on
the Mirado project. Progress continues on Mirado's updated Resource
Calculation and the Preliminary Economic Assessment.
Management has been advised by its independent consultant and
author of the reports that the Company can expect initial results
of the Preliminary Economic Assessment and Resource Calculation in
January 2018.
Non-Arms Length Transaction
Alex Stewart owns 5.6% of the shares of Premet
Inc. and in addition holds founders' warrants entitling him to
acquire 1,592,727 shares of Premet. These founders' warrants will
be exchanged for Orefinders warrants at the same exchange ratio as
for the common shares. Alex
Stewart has abstained from voting on the directors'
resolution approving the acquisition of Premet Inc.
Information Regarding Historical Resources
All
historical scientific and technical information relating to the
Shining Tree Properties are based on and derived from the Technical
Reports published and available on SEDAR, including the G.A.
Harron, P.Eng. April 19, 2012
Technical Report on the Shining Tree Project; and the Michael V.W
White MSc, P.Geo, March 23, 2010
Technical Report on Duggan, Tyrenite and Minto Properties;
March 10, 2008 Report on the Duggan
Property; April 25, 2008 Report on
Rosko-Duggan Property; November 9,
2007 Report on the Duggan Property. We also referred
to published news releases from Creso Exploration as well as
references to the mineral deposit database (MDI) on the Ontario
Ministry of Northern Development and Mines (MNDM) website.
The reader is cautioned that Orefinders Inc. has not undertaken any
independent investigation of the dimensions, quantity or grade of
the gold mineralization referred to above, and has purchased these
assets 'as is' and is relying upon previously publicly disclosed
information as reported above. Orefinders intends to validate the
historic drill data to the extent that it can be used in
conjunction with any new subsequent drill data to be used in any
new resource estimates. Orefinders Inc. views this historical data
as a conceptual indication of the potential size and grade of the
gold deposits in the area, and this data is relevant to ongoing
exploration efforts. In view of when the resources were estimated
and the differences in metal price and operating costs prevailing
at the time compared to today, Orefinders Inc. does not treat any
of the historical resources as Current mineral resources or mineral
reserves.
QP Statement
The technical information contained in
this news release has been reviewed and approved by Charles Beaudry, P.Geo, Director and Vice
President Exploration for Orefinders, who is a Qualified Person as
defined in "National Instrument 43-101, Standards of Disclosure for
Mineral Projects."
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. Certain information in this press release
may contain forward-looking statements. This information is based
on current expectations that are subject to significant risks and
uncertainties that are difficult to predict. Actual results might
differ materially from results suggested in any forward-looking
statements. Orefinders' assumes no obligation to update the
forward-looking statements, or to update the reasons why actual
results could differ from those reflected in the forward
looking-statements unless and until required by securities laws
applicable to Orefinders. Additional information identifying risks
and uncertainties is contained in filings by Orefinders with
Canadian securities regulators, which filings are available under
Orefinders' profile at www.sedar.com.
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SOURCE Orefinders Resources Inc.