SUDBURY, ON, Jan. 31, 2017 /CNW/ - Transition Metals Corp.
(XTM – TSX.V) ("Transition" or "the Company"), is pleased to
announce that drilling is now underway on the Gowganda Gold project
located 75 kilometres southwest of Kirkland Lake Ontario. The objective of the
current drill program is to test high priority gold targets
associated with mineralized and altered syenite and gold veins
identified from surface trenching and previous drilling as detailed
below. One drill is turning with plans to complete approximately
1,500 metres of drilling by early March
2017.
Company CEO and president, Scott
McLean commented, "We are pleased to be advancing this
project in partnership with Aldershot. The team has done a great job
towards identifying some exciting gold targets. We look forward to
results from this program as they become available over the coming
weeks."
Prior Work:
In 2010, results from Gowganda
area prospector Sherry Swain
encouraged Transition Metals to undertake a program of mechanical
overburden stripping to better expose the bedrock geology on in an
area located approximately 1.5 kilometres west of the historic
Gowganda silver camp and 2
kilometres north of the town of Gowganda in Haultain Township, Ontario. This work led to the identification
of an Archean syenite associated gold system that the Company named
the Haultain Gold Discovery.
Since the initial discovery was made, additional claims were
staked or acquired to cover other areas with identified gold and
silver potential. The project area now consists of mining claims
totaling approximately 3,520 hectares centrally located about Hwy
560 adjacent to the unorganized municipality of Gowganda Ontario in Nicol, Haultain, Milner,
and Van Hise townships, Larder Lake
Mining Division and is more generally referred to as the Gowganda
Gold Project.
Since discovery in 2010, Transition has completed programs of
Induced Polarization (IP) geophysics, soil surveying, mapping,
additional mechanical trenching and bedrock channel sampling as
well as completing 21 drill holes totaling 2,258 metres. The
property hosts widespread elevated gold mineralization hosted by
stockwork veining in altered syenite ranging from nil to 3.5 g/t
over significant widths of up to 20m in channel samples and
drilling as well as up to 97 g/t Au over short channel widths (0.4
metres) within quartz veins. Drill intercepts include 2.37
g/t over 7.06 metres and up to 82.5 g/t Au over 0.4 metres.
About the Gowganda Gold Project:
The project is focused on Archean greenstone overlain by
Proterozoic sediments of the Cobalt Embayment located south of the
Round-Lake Batholith in the south-western part of the prolific
Abitibi greenstone belt. A short animated video that introduced
Aldershot and the Haultain project
may be viewed at:
http://iresourcemedia.com/companies/aldershot/
Update of Activities
On November 8th, 2016
the Transition announced that it had initiated work on the Project
in partnership with Aldershot. A
detailed structural study of the mineralized vein systems was
undertaken and 2 areas were mechanically stripped and sampled.
Results from this work were disclosed by Aldershot on January
19, 2017 and can be viewed at
www.aldershotresources.com.
In January, a 14.5 line kilometer grid was cut and detailed
ground magnetic and induced polarization (IP) geophysical surveys
have now been completed. Results from the geophysical program will
be used to assist with drill targeting at depth and in areas under
cover. Under the agreement with Aldershot, Transition is the Operator for the
program. A surface plan depicting the location of work completed
and planned drilling is presented in Figure 1.
Terms of the Aldershot Option and Joint Venture
Agreement
To earn a 51% interest in the Property, Aldershot has committed to funding
$400,000 worth of exploration on
property in year one and must incur cumulative work expenditures
totaling $2.0 million by the third
anniversary of the agreement. In addition, Aldershot must issue 1,500,000 common shares
to Transition on signing (received), and provide an additional
$450,000 worth of Aldershot shares to Transition by the second
anniversary date, subject to exchange approvals to earn its initial
interest. During the course of the initial stage of the Option,
Transition has agreed to serve as program Operator, dedicating its
team and expertise to overseeing work programs funded by
Aldershot. Upon earning an initial
51% interest, Aldershot may opt to
acquire an additional 24% interest in the Property (for a total of
75%) by completing a feasibility study within 3 years. Upon
Aldershot earning its 51% or 75%
interest in the Property as the case may be, a Joint Venture would
be formed, with each party being required to fund work programs on
the property to maintain its respective interest.
Qualified Person
The technical elements of this press release have been approved
by Mr. Greg Collins, P.Geo. (APGO),
a Qualified Person under National Instrument 43-101
About Transition Metals Corp
Transition Metals Corp (XTM -TSX.V) is a Canadian-based,
multi-commodity project generator that specializes in converting
new exploration ideas into Canadian discoveries. The award-winning
team of geoscientists has extensive exploration experience in
established, emerging and historic mining camps and actively
develops and tests new ideas for discovering mineralization in
places that others have not looked, which often allows the company
to acquire properties inexpensively. The team is rigorous in its
fieldwork and combines traditional techniques with newer ones to
help unearth compelling prospects and drill targets. Transition
uses the project generator business model to acquire and advance
multiple exploration projects simultaneously, thereby maximizing
shareholder exposure to discovery and capital gain. Joint venture
partners earn an interest in the projects by funding a portion of
higher-risk drilling and exploration, allowing Transition to
conserve capital and minimize shareholder's equity dilution. The
Company has an expanding portfolio that currently includes more
than 25 gold, copper, nickel and platinum projects primarily in
Ontario, Nunavut, British
Columbia, Minnesota and
Saskatchewan.
Cautionary Note on Forward-Looking Information
Except for statements of historical fact contained herein, the
information in this news release constitutes "forward-looking
information" within the meaning of Canadian securities law. Such
forward-looking information may be identified by words such as
"plans", "proposes", "estimates", "intends", "expects", "believes",
"may", "will" and include without limitation, statements regarding
estimated capital and operating costs, expected production
timeline, benefits of updated development plans, foreign exchange
assumptions and regulatory approvals. There can be no assurance
that such statements will prove to be accurate; actual results and
future events could differ materially from such statements. Factors
that could cause actual results to differ materially include, among
others, metal prices, competition, risks inherent in the mining
industry, and regulatory risks. Most of these factors are outside
the control of the Company. Investors are cautioned not to put
undue reliance on forward-looking information. Except as otherwise
required by applicable securities statutes or regulation, the
Company expressly disclaims any intent or obligation to update
publicly forward-looking information, whether as a result of new
information, future events or otherwise.
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.
SOURCE Transition Metals Corp.