SUDBURY, ON, Nov. 1, 2017 /CNW/ - Canadian Gold Miner
Corp ("CGM", the Company) and Transition Metals Corp. (50%
owner of CGM; XTM – TSX.V, "Transition"), jointly announce
that CGM has entered into an agreement with Explorex Resources Ltd.
(Explorex) to option 100% of CGM's interest in its Cobalt-Paragon
Project (previously referred to as the Golden Elk Property by
XTM/CGM, or the Property) to Explorex in exchange for $140,000 (of which $130,000 can be in cash or shares), the issuance
of 1,700,000 Explorex shares and the completion of $1,275,000 in work expenditures over a 3-year
period. Upon earning a 100% interest, CGM will retain a 1% Net
Smelter Return royalty subject to a first right of refusal to
buyback the NSR held by Explorex. The property consists of staked
and patented property that was consolidated by CGM.
Canadian Gold Miner CEO Greg
Collins commented "Optioning our interest in this project
to Explorex will expose our shareholders and the XTM shareholders
to upside coming from a great team active in the cobalt sector
while enabling us to keep our focus on gold opportunities emerging
from our South Kirkland project
area."
About the Cobalt Paragon Project:
The Cobalt-Paragon project consists of two historic mines, the
Cobalt-Frontenac and
Paragon-Hitchcock, hosting two
distinct target types: (1) at the Cobalt-Frontenac Archean
volcanics, cut by NE-oriented shears with multiple east-west pinch
and swell veins containing historic gold values on surface and (2)
Proterozoic Nipissing
diabase sills hosting quartz–calcite veining with silver and cobalt
mineralization at the Paragon-Hitchcock. Historic exploration dates largely
to the period from 1900 to 1920 and was focused on prospecting to
identify mineralized structures followed by underground
development. Neither of these mines has ever been investigated by
modern exploration methods guided by current ore deposit modelling
criteria nor has any drilling been completed. The project is
located close to Elk Lake Ontario,
less than 45 minutes along provincial highways from both
Kirkland Lake and Temiskaming
Shores.
The Cobalt–Frontenac mine lies along the projection of
the Rideout fault structure, which to the west is extensively
covered by Proterozoic Huronian sediments. The mine was developed
to explore and exploit an Archean high-grade, shear-hosted quartz
vein gold occurrence around 1904 to 1917, when a 30 metre deep
shaft and 2 underground levels were completed. Stripping and
trenching by Transition in 2012 in the vicinity of the shaft
exposed a 30 metre wide outcrop hosting a NE-trending,
sheared quartz vein that returned grab values ranging from nil
to 11.2 g/t Au and channel samples including 3.0 g/t Au over
0.50 metres¹.
The Cobalt Frontenac mine occurs along the boundary of two
privately owned patents acquired by Transition in 2015. CGM
purchased the patents from Transition in 2016 subject to underlying
net smelter return royalties of up to 3% to the original property
owners and a $1,000,000 Commercial
Production payment to Transition.
The Paragon-Hitchcock
mine hosts 3 known zones of silver veining. Prior to 1929, a 180
metre shaft was sunk with 30 metre levels to explore the main vein
that was reported to be thickening with depth with increasing
amounts of chalcopyrite and skutterudite (a key cobalt bearing
mineral). All funding and operations ceased due to the collapse in
silver price during the Great Depression of the 1930's. Recent grab
sampling conducted by CGM from a muck pile at the Paragon Hitchcock
mine, representing material from the shaft and underground level,
returned values ranging from 8.79 to 414 (g/t) silver, 0.06 to
9.86 g/t gold, and 0.08 to 9.25% cobalt.
The Paragon Hitchcock was acquired under by CGM in 2017 via an
option agreement with local claim holders. Under the terms of the
Paragon Hitchcock Option agreement a 100% interest in the property
can be earned by making payments totaling $75,000 and incurring exploration expenditures of
$250,000 over 3 years, subject to a
2% NSR to the property holders, of which 1% of the NSR can be
repurchased for $1.0 million dollars.
Under the terms of the Explorex agreement, Explorex has agreed to
assume these obligations.
1 http://www.transitionmetalscorp.com/news/2012/item/transition-metals-reports-high-grade-gold-assays-in-the-southern-abitibi
Gold Exploration Potential:
Gold mineralization associated with the Cobalt-Frontenac mine appears associated with a
northeast trending shear zone that has been traced along strike for
over 2 kilometres onto the recently acquired Paragon Hitchcock
property. It is interpreted that this structure has the potential
to control the emplacement of Archean mesothermal lode gold
deposits in a manner similar to other known gold deposits of the
Abitibi Greenstone belt.
Silver and Cobalt Exploration Potential:
Portions of the Paragon Hitchcock property are intruded by
Nipissing gabbro/diabase sills
near the eastern edge of the historical Elk Lake Silver Camp where,
between 1907 and1913, 30 active mines exploited narrow but high
grade silver-cobalt mineralization. The Elk Lake Mining Camp occurs
within the northern portion of the Cobalt Embayment, where
sediments of the upper members of the Huronian Supergroup
unconformably overly Archean basement rocks. Silver-cobalt
mineralization occurs in steeply-dipping carbonate veins controlled
by complex fault networks close to contact between the Nipissing sills and surrounding country
rocks.
On the Paragon Hitchcock property, cobalt-bearing vein systems
can be traced along strike at surface for approximately 400 metres
in outcrop and trenches and to depth within the historic mine. A
1929 report issued by Paragon Hitchcock Mines suggested that the
thickness and grade of the veining was increasing towards at
depth.
About Canadian Gold Miner Corp
Canadian Gold Miner Corp. is a Canadian private corporation focused
on exploring for gold in the Larder Lake Mining District near
Kirkland Lake. The Company was
founded by Transition to leverage its data, expertise and extensive
portfolio of high quality gold projects within the district. CGM
has assembled a dominant land position in excess of 165 square
kilometres around the Cadillac Larder, Lincoln-Nipissing and Ridout Structures in the
southwestern part of the prolific Abitibi Greenstone belt in
Ontario. The Abitibi Greenstone
belt is Canada's most prolific
gold district located in a stable political jurisdiction with
excellent mining infrastructure in place.
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 company
has an expanding portfolio that currently includes 25+ gold,
copper, nickel and platinum projects primarily in Ontario, Nunavut, Northwest
Territories, British
Columbia, Saskatchewan and
Minnesota that it seeks to advance
through funding partnerships and subsidiary companies to maximize
shareholder value. Transition Metals presently owns approximately
50% of Canadian Gold Miner.
Qualified Person
The technical elements of this press
release have been approved by Mr. Thomas
Hart, P.Geo., V.P. Exploration for Canadian Gold Miner and a
Qualified Person under National Instrument 43-101.
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 Canadian Gold Miner Corp.