Probe Metals Inc. (TSX-V: PRB) (OTCQB:
PROBF) (“Probe” or the
“
Company”) is pleased to announce the acquisition
of SOQUEM Inc’s (“SOQUEM”) 25% interest in the Company’s Detour
Quebec Joint-Venture Project (the “
Transaction”).
Upon the completion of the Transaction, Probe will own 100% of the
project. As previously disclosed in September 2017, Probe entered
into a 75-25 joint venture agreement with SOQUEM Inc. on its Detour
Quebec Project (see Company’s press release dated September 25,
2017).
David Palmer, President and CEO of Probe,
states: “The re-acquisition of 100% of the Detour project gives
Probe full flexibility to advance exploration and unlock value on
this large, strategic land package. Probe’s Detour Project
represents the third largest property on the Quebec side of the
Detour Trend, which has seen significant exploration success and
over C$5 billion of M&A activity in 2020. The project
provides the potential for Probe to add significant value with over
50 kilometres of strike length along the Lower Detour Deformation
Zone, which is contiguous with Kirkland Lake Gold’s high-grade Zone
58N and Zone 75 discoveries.”
Pursuant to the Transaction, the Company will
acquire SOQUEM’s interest in the Project for a consideration of
$425,000. At closing, Probe will issue 620,081 common shares to
SOQUEM for a total value of $425,000 based on 20-day volume
weighted average price (VWAP) of $0.6854 per share on the TSX
Venture Exchange. The transaction is subject to receipt of approval
of the TSX Venture Exchange.
Probe’s flagship Val-d’Or East project remains
the top priority for the Company. This project has shown rapid and
continued growth since the acquisition in 2016. The current
resource at theVal-d’Or East project includes gold resources
totaling 866,300 measured and indicated ounces and 2,558,100
inferred ounces. The 2020 exploration program consists of 90,000
metres of drilling on the project which primarily focuses on
resource growth.
Detour Quebec Project
The discovery stage Project consists of 572
claims covering an area of 306 square kilometres along the Detour
Gold Trend and is located 190 kilometres north of Rouyn-Noranda,
Quebec, and hosts the Sunday Lake, Massicotte and Lower Detour Lake
gold deformation zones (See Figure 1). The Project is located
along the lateral extensions of the Detour Lake mine and recent
high-grade gold discoveries in Zone 58N¹, Area 51-Fenelon²and
Martiniere/Bug Lake³. The area has seen recent activity with the
C$4.9 billion acquisition of Detour Gold (who operates the Detour
Lake mine in Ontario along the Sunday Lake Fault) by Kirkland Lake
(see Kirkland Gold press release dated January 31st, 2020) and the
consolidation of Balmoral Resources by Wallbridge Mining (see
Wallbridge Mining press release dated March 2nd, 2020 and Balmoral
press release dated April 6, 2020).
Figure 1: Claims Map – Detour Quebec Probe
https://www.probemetals.com/site/assets/files/1459/dq-property-8x11.pdf
Probe has been working in this area since 2016.
Previously, the Company announced the discovery of a new gold zone
along the Lower Detour Deformation Zone grading 17.5 g/t Au over 1
metre (hole MA-16-05) located 12 kilometres east of Zone 58N (see
Company’s press release dated August 24, 2016). More
recently, Probe has completed a number of geophysical surveys that
outlined numerous exploration targets along the major gold
structures. Current exploration programs are designed to prioritize
these areas for drilling as well as highlight new areas for
follow-up exploration along our extensive land package.
Detour Area Gold
Mineralization
1: Detour Lake mine (Owned by Kirkland Lake Gold
Ltd. – Information from Detour Gold Website): As at December 31,
2018, the Detour Lake open pit mine hosts 13.17 million ounces of
gold (“oz Au”) in proven and probable mineral reserves, consisting
in 414.9 million tonnes grading 0.99 g/t Au. Zone 58N (Owned by
Kirkland Lake Gold Ltd – Information from Detour Gold Website): As
at July 25, 2018, this deposit hosts 2.87 million tonnes in
indicated resources at a grade of 5.8 g/t Au (534 300 oz Au) and
0.97 million tonnes in inferred resources at a grade of 4.35 g/t Au
(136 100 oz Au).
2: Fenelon (Owned by Wallbridge Mining Company
Ltd. – Information from Wallbridge Website): 2018-2019 bulk
sampling: 33,233 tonnes at 18.49 g/t Au and as February 2, 2017,
M&I Resources of 38,000 ounces at 13.0 g/t Au.
3: Martiniere/Bug Lake (Owned by Balmoral
Resources Ltd. – Information from Balmoral Website): As March 27,
2018, this deposit hosts pit-constrained indicated resources
totalling 6,827,000 tonnes at a grade of 1.96 g/t Au (431,000 oz
Au) and underground indicated resources totalling 1,092,000 tonnes
at a grade of 4.54 g/t Au (159,000 oz Au).
Mineralization occurring at the mines and
deposits listed in this press release is not necessarily
representative of mineralization that may be found on the Project.
The true thickness and the extensions of reported drill intercepts
on the Project cannot be determined with the information currently
available and more drilling will be required.
Qualified Persons
The scientific and technical content of this
press release has been reviewed, prepared and approved by Mr. Marco
Gagnon, P.Geo, Executive Vice President, who is a "Qualified
Person" as defined by National Instrument 43-101 - Standards of
Disclosure for Mineral Projects ("NI 43-101").
About SOQUEM:SOQUEM, a
subsidiary of Investissement Québec, is dedicated to promoting the
exploration, discovery and development of mining properties in
Quebec. SOQUEM also contributes to maintaining strong local
economies. A proud partner and ambassador for the development of
Quebec’s mineral wealth, SOQUEM relies on innovation, research and
strategic minerals to be well-positioned for the future.
About Probe Metals:Probe Metals
Inc. is a leading Canadian gold exploration company focused on the
acquisition, exploration and development of highly prospective gold
properties. The Company is committed to discovering and developing
high-quality gold projects, including its key asset the Val-d’Or
East Gold Project, Quebec. The Company is well-funded and controls
a strategic land package of approximately
1,000-square-kilometres of exploration ground within some of the
most prolific gold belts in Quebec. The Company was formed as a
result of the sale of Probe Mines Limited to Goldcorp in March
2015. Newmont currently owns approximately 12.2% of the
Company.
On behalf of Probe Metals Inc.,
Dr. David Palmer, President & Chief Executive
Officer For further information:
Please visit our website at www.probemetals.com
or contact:
Seema SindwaniDirector of Investor
Relationsinfo@probemetals.com+1.416.777.9467
Forward-Looking Statements
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. This News Release includes certain
"forward-looking statements" which are not comprised of historical
facts. Forward-looking statements include estimates and statements
that describe the Company’s future plans, objectives or goals,
including words to the effect that the Company or management
expects a stated condition or result to occur. Forward-looking
statements may be identified by such terms as “believes”,
“anticipates”, “expects”, “estimates”, “may”, “could”, “would”,
“will”, or “plan”. Since forward-looking statements are based on
assumptions and address future events and conditions, by their very
nature they involve inherent risks and uncertainties. Although
these statements are based on information currently available to
the Company, the Company provides no assurance that actual results
will meet management’s expectations. Risks, uncertainties and other
factors involved with forward-looking information could cause
actual events, results, performance, prospects and opportunities to
differ materially from those expressed or implied by such
forward-looking information. Forward looking information in this
news release includes, but is not limited to, the Company’s
objectives, goals or future plans, statements, exploration results,
potential mineralization, the estimation of mineral resources,
exploration and mine development plans, timing of the commencement
of operations and estimates of market conditions. Factors that
could cause actual results to differ materially from such
forward-looking information include, but are not limited to failure
to identify mineral resources, failure to convert estimated mineral
resources to reserves, the inability to complete a feasibility
study which recommends a production decision, the preliminary
nature of metallurgical test results, delays in obtaining or
failures to obtain required governmental, environmental or other
project approvals, political risks, inability to fulfill the duty
to accommodate First Nations and other indigenous peoples,
uncertainties relating to the availability and costs of financing
needed in the future, changes in equity markets, inflation, changes
in exchange rates, fluctuations in commodity prices, delays in the
development of projects, capital and operating costs varying
significantly from estimates and the other risks involved in the
mineral exploration and development industry, and those risks set
out in the Company’s public documents filed on SEDAR. Although the
Company believes that the assumptions and factors used in preparing
the forward-looking information in this news release are
reasonable, undue reliance should not be placed on such
information, which only applies as of the date of this news
release, and no assurance can be given that such events will occur
in the disclosed time frames or at all. The Company disclaims any
intention or obligation to update or revise any forward-looking
information, whether as a result of new information, future events
or otherwise, other than as required by law.
A photo accompanying this announcement is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/e4f9b5e8-4aad-49af-a510-cb04e65d410f
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