TSX-V: VEIN | FSE: N071
TORONTO, Jan. 11, 2018 /CNW/ - Enforcer Gold Corp
("Enforcer" or the "Company") (TSX-V: VEIN – FSE: N071) is pleased
to announce it has entered into an option and joint venture
agreement with SOQUEM Inc. ("SOQUEM") to acquire a 50% interest in
the Roger Property ("Roger" or the "Property") located in the
prolific Abitibi greenstone belt, 5 km from Chibougamau, Quebec.
President & CEO, Steve
Roebuck, comments:
"We are very pleased to have the opportunity to earn 50% in the
advanced-stage Roger gold-copper porphyry property and to be
working with a stable partner in SOQUEM. Roger comes with a
substantial database with over 54,906
m of diamond drilling and 1,177
m of underground development and a historical resource
estimate. Our plan is to quickly advance the project through
additional drilling to bring it to a current mineral resource
status. SOQUEM has been involved with the property since 1997 and
thus brings extensive knowledge and continuity to the project going
forward. We are excited to add to our Quebec project base and to be working in one
of Quebec's underexplored gold
districts."
The Roger Property
Roger is an advanced-stage exploration property containing the
Mop-ll porphyry gold-copper deposit. A 2006 NI 43-101 compliant
mineral resource estimate on the deposit by Scott Wilson Roscoe
Postle Associates Inc. for SOQUEM totalled 3.24 Mt of Inferred
Resources at an average grade of 1.61 g/t Au and 0.04% Cu at a
cut-off grade of 1.0 g/t Au for a total 167,200 ounces of gold.
N.B.: Enforcer considers the 2006 estimate as a historical
resource estimate that has relevance to the project; however, a
qualified person for the Company has not done sufficient work to
classify the historical estimate as a current mineral resource and
as such it should not be relied on.
Subsequent to completion of the 2006 estimate, SOQUEM drilled an
additional 60 holes on the property totalling 15,456 m of diamond drilling. In 1988, an
underground exploration program on the deposit included
1,177 m of underground development
and 1,433 m of underground drilling
in 23 core holes. In total, 54,906 m
of diamond drilling have been completed on the property.
The 987-hectare Roger property is located in the Chibougamau
Mining District within the prolific Abitibi greenstone belt. It is
situated 5 km from the mining center of Chibougamau, Quebec and has all-season road
access. The first gold/copper discoveries in the Chibougamau district occurred in the early
1900s. Mining in the district from 1953 to 2008 produced 1.6
billion pounds of copper and 3.2 million ounces of gold along with
significant amounts of silver and zinc.
Terms of the Agreement
Under the terms of the option agreement (the "Option"), Enforcer
can earn a 50% undivided interest in the Property after Enforcer
invests $2,000,000 in a work program
over 3 years and issues 1,000,000 common shares of Enforcer to
SOQUEM as follows:
Financing $2,000,000 in work
program investments as follows:
- $500,000 by the end of year 1
(January 8, 2019)
- $750,000 by the end of year 2
(January 8, 2020)
- $750,000 by the end of year 3
(January 8, 2021)
Issuing a total of 1,000,000 common shares of Enforcer as
follows:
- 250,000 by the end of year 1 (January 8,
2019)
- 250,000 by the end of year 2 (January 8,
2020)
- 500,000 by the end of year 1 (January 8,
2021)
The Option can be earned prior to the end of the 3-year period
if Enforcer completes the work requirement and issues the common
shares earlier.
SOQUEM will act as the sole manager of the Property prior to the
exercise of the Option and will add a 10% management fee to the
funds they manage, or in the case of third party work a 5%
management fee. Upon exercise of the Option, a joint venture (the
"Joint Venture") will be established to continue the exploration
and potential development, construction, commercial production,
mine closure and rehabilitation. Prior to the establishment of the
Joint Venture, it is deemed that each party has contributed
$2,000,000 to the Property.
Subsequent contributions to the Property will determine the
interest of each party moving forward. If both parties agree to
spend their relative proportion, the Joint Venture will continue on
a 50-50 basis.
About SOQUEM
SOQUEM Inc., a subsidiary of Ressources Québec, is a leading
player in mineral exploration with its mission to explore, discover
and develop mining properties in Quebec. SOQUEM has participated in more than
350 exploration projects and contributed to major discoveries of
gold, diamonds, lithium and other minerals in Quebec.
About Enforcer Gold Corp
Enforcer Gold Corp is a Canadian-based mineral exploration
company and is earning a 100% interest in the Montalembert gold
project from Globex Mining Enterprises Inc. (TSX: GMX). The
7,300-hectare property is located 125 km west of Chibougamau in Quebec's prolific Abitibi greenstone belt. The
Company completed its first exploration program on the project in
October 2017, including 5,784 m of diamond drilling. Enforcer has a
strong cash position with $3.9 M is
its treasury.
Enforcer's President & CEO, Steve
Roebuck, PGeo, is a Qualified Person as defined by National
Instrument 43-101 and has reviewed and approved the content of this
news release.
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 news release.
This news release contains "forward-looking statements" that are
based on expectations, estimates, projections and interpretations
as at the date of this news release. Forward-looking statements are
frequently characterized by words such as "plan", "expect",
"project", "intend", "believe", "anticipate", "estimate",
"suggest", "indicate" and other similar words or statements that
certain events or conditions "may" or "will" occur, and include,
without limitation, statements regarding the Company's plans with
respect to the exploration of its Roger Project, the exploration
potential and analogous deposit potential of the Roger Project and
the timing of the Company's exploration programs. Such
forward-looking statements involve known and unknown risks,
uncertainties and other factors which may cause the actual results,
performance or achievements of the Company to be materially
different from any future results, performance or achievements
expressed or implied by such forward-looking statements. Such risks
and other factors may include, but are not limited to, the results
of exploration activities; the ability of the Company to complete
further exploration activities; the ability of the Company to
complete transactions on terms announced; timing and availability
of external financing on acceptable terms and those risk factors
outlined in the Company's Management Discussion and Analysis as
filed on SEDAR. Enforcer Gold does not undertake to update any
forward-looking information except in accordance with applicable
securities laws.
SOURCE Enforcer Gold