Leviathan Gold Ltd. (“
Leviathan”, the
“
Company”) (LVX – TSXV, 0GP – Germany) is pleased
to announce receipt of initial assay results from Phase 2 diamond
drilling currently under way at its Excelsior Prospect
(“Excelsior”) pursuant to a Heads of Agreement entered into between
Leviathan and Core Prospecting Pty Ltd (“
Core”) on
July 17, 2023 as subsequently amended on January 16, 2023
(“
HOA”). Excelsior lies within the Company’s Avoca
Project in the Victorian Goldfields, Australia.
A total of 640.85 meters of diamond drilling
over five Phase 2 holes has now been completed by Core in a
south-easterly oriented fan of drill holes designed to test for
north-easterly continuation of high-grade hanging wall
mineralization identified during the first phase of drilling, as
reported by the Company on June 25, 2024 (Figure 1). This work
forms part of an ongoing 4,000 meter diamond drilling program being
performed by Core, the expected cost of which is approximately
CAD$950,000.
Results from the first two holes of this program
(EH030 and EH031) have been received, and include 0.41 meters at
6.3 g/t Au and 1.62 meters at 5.3 g/t Au in hole EH030, which
terminated in previously mapped underground mine workings. While
drilling had been designed to target mineralized structures beyond
these workings, deviation of the drill string is understood to have
brought about this intersection, and nevertheless validates Core’s
targeting model. An interval of 0.27 meters at 14.5 g/t Au was
returned in hole EH031. Additional drilling will be required to
determine the true thickness of mineralization.
The purpose of the current Core program is to
drill beneath and along-structure from intervals previously
reported by Leviathan from Excelsior, which include 8.24 g/t Au
over 6.63 meters (54.63 gram meters), from 161.95 meters in hole
EH003 (press release of April 21, 2021); 5.40 g/t Au over 11.02
meters (59.51 gram meters), from 84.37 meters in hole EH005 (press
release of April 26, 2021) and 4.85 meters at 9.0 g/t Au (43.66
gram meters) in hole EH014, 3.13 meters at 56.9 g/t Au (178.23 gram
meters), in hole EH017 and 12.68 meters at 9.2 g/t Au, (116.85 gram
meters), in hole EH029 (press release of June 25, 2024). These
intervals are believed to represent the down-dip continuation of
mineralization observed in historic mine workings, and are
characterized by intense quartz veining, visible gold, and
enveloping sericitic alteration and base metal sulphides.
Interpretative work on drilling completed to
date continues to suggest the presence of a northeast plunging
mineralized dilational zone consisting of quartz reef and
associated splays in which gold is hosted in quartz veins.
Highlights of results published in this release
are provided in Table 1, collar information in Table 2, and full
results in Table 3.
Figure 1: Plan of drilling at the
Excelsior Reef
Table 1: Significant intervals from
drilling at the Excelsior Reef, current release
Drill Hole |
From |
To |
Interval |
Au |
Au |
(m) |
(m) |
(m) |
(g/t) |
(gram meters) |
EH030 |
116.67 |
117.08 |
0.41 |
6.34 |
2.60 |
EH031 |
75.28 |
76.9 |
1.62 |
5.32 |
8.62 |
EH031 |
102.28 |
102.55 |
0.27 |
14.50 |
3.92 |
Table 2: Collar data for drilling at the
Excelsior Reef
|
Easting (MGA 2020 Z54) |
Northing (MGA 2020 Z54) |
Elevation (m) |
Azimuth(°) |
Inclination(°) |
Depth(m) |
EH030 |
726,198 |
5,899,560 |
235.5 |
133 |
-54 |
122.6 |
EH031 |
726,198 |
5,899,560 |
235.5 |
155 |
-55 |
104.5 |
EH032(1) |
726,198 |
5,899,560 |
235.5 |
143 |
-62 |
150.3 |
EH033(1) |
726,198 |
5,899,560 |
235.5 |
124 |
-57 |
140.6 |
EH034(2) |
726,198 |
5,899,560 |
235.5 |
131 |
-64 |
161 |
*Coordinates are in MGA2020 Z54, azimuths are referenced to grid
north and inclinations are zero when horizontal and -90 when
vertical true; (1)Results pending; (2)In progress.
Leviathan Gold Chief Executive Officer, Luke
Norman, remarked: “Following on from the success of Core
Prospecting’s Phase 1 program at Excelsior, ongoing drilling and
geological work appears to demonstrate the potential for
north-eastward strike extensions to Phase 1 gold mineralization at
the property. With over 3,000 meters of diamond drilling remaining
to be completed by Core under their current Phase 2 program, these
works continue to provide Leviathan with the opportunity to define
a high-grade gold deposit of significance. We once again thank Core
for their considerable efforts to date and look forward to working
with their highly skilled team as this program continues to
evolve.
About the HOA
Under the terms of the HOA, Core may earn an
initial 40% interest in a three square kilometre area within EL5387
(the Excelsior Area of Interest, or “AOI”) by
completing, at Core’s sole cost and expense, 2,000 meters of
diamond drilling including assays by April 17, 2024 (“Phase
1”), and a further 35% interest in the AOI for an
additional 4,000 meters of diamond drilling including assays and
preparing an independent JORC report (the “JORC
Report”) identifying an Indicated and/or Measured Mineral
Resource within 12 months from the end of Phase 1, each at Core’s
sole cost and expense (“Phase 2”). In lieu of
completing such further drilling, Core may instead prepare, at its
sole cost and expense, a JORC report containing Indicated and/or
Measured Mineral Resources of not less than 50,000 ounces of gold
at a cut-off grade of 2.5g/t Au within the AOI. Upon fulfilment of
certain conditions by Core, Leviathan shall on behalf of Core apply
for a standalone tenure over the AOI, (the “New
Tenement”). If Core fails to complete Phase 2 they shall
forfeit any interest under Phase 1 and shall have no interest in
the AOI.
As a result of Core completing the initial phase
of diamond drilling (press release of June 25, 2024), and
commencing its second phase of diamond drilling, it has earned a
40% interest in in a New Tenement to be applied for by Leviathan,
subject to the fulfilment of certain further conditions by
Core.
Upon Core having attained a 75% equity interest
in the AOI, Leviathan may either contribute its share of costs and
maintain its equity interest or be diluted pro-rata to a minimum
carried interest of 5%, which Core shall purchase from Leviathan
for the sum of AUD$150 per ounce of Indicated and/or Measured
Mineral Resources as estimated in the JORC Report, payable upon
commencement of gold production. Alternatively, Core may, within 12
months of the completion of Phase 2, purchase Leviathan’s holding
in the AOI for the sum of AUD$75 per ounce of Indicated and/or
Measured Mineral Resources in the JORC Report, or Core may within
12 months of the completion of Phase 2 purchase Leviathan’s holding
in the Excelsior AOI by paying instalments of AUD$25,000 per
quarter, increasing to AUD$75,000 per quarter, commencing from the
date on which a New Tenement is granted and continuing for the life
of any gold production mine located within the area of the AOI.
The HOA also provides that Leviathan may,
subject to Core first completing Phase 1, claw back Core’s equity
stake in the AOI for the sum of AUD$500 per meter drilled, or after
receipt of the JORC Report for AUD$150 per ounce of gold
mineralisation estimated and classified as an Indicated Mineral
Resource and/or a Measured Mineral Resource in the JORC Report.
About the Excelsior Prospect
The Excelsior prospect is interpreted to host
structurally controlled gold mineralization developed within quartz
veins. Historic production records from Excelsior indicate the
mining of 13,200 tons for 9,260 ounces of gold down an ore shoot to
a depth of 100 meters at an average recovered grade of 22 g/t Au
between 1909 and 19151, with said mineralization open to depth and
along strike. A total of 1,917 meters in 11 holes have been drilled
at Excelsior by Leviathan to date.
Qualified Person and Data Verification
The technical content of this news release has
been reviewed, verified and approved by Keith Whitehouse, MAusIMM
(CP Geol), MAICD, Exploration Manager of Leviathan Gold (Australia)
Pty. Ltd., a qualified person as defined by NI 43-101.
Drilling was carried out by Core using their
equipment, and all core was drilled at NQ size. Average core
recovery for the program was 96.6%. Drill core was cut in half by
Core using a diamond saw, with one half of the core then taken as a
sample for analysis. Samples were sawn along the bottom of hole
orientation line, or if none present a consistent cutline as marked
by the logging geologist. Sample intervals were generally between
10 and 150 centimetres, producing samples of between 0.27 to 4.0
kg. Samples were delivered to On Site Laboratory Services (Pty) Ltd
(“On Site”), in Bendigo, Victoria. The samples
were coarse crushed to P80 <2mm using industry standard Boyd
crushers with a 1kg sub-sample being packed into standard
containers for assay using a Chrysos Corporation Photon Assay
analyser, lab method code PAAU02. Regular crush duplicates were
generated and reported by the laboratory together with regular
replicate results of the primary sample. Replicate results were
provided for 100% of gold grades greater than 10 g/t and more than
85% of grades greater than 5 g/t. Core routinely inserted Photon
Assay certified geochemical standards and blanks together with
samples flagged for coarse crush duplicate-sampling into the drill
core sample stream as part of a documented Quality
Assurance/Quality Control (“QAQC”) process to
monitor laboratory performance. During the drilling program QAQC
material was inserted into every sample batch at the following
average rates per primary sample: crush duplicates 1 in 30; basalt
blanks 1 in 30; certified reference material 1 in 30. QAQC sampling
was considered to provide acceptable results. Sample grades were
checked against recovery percentage for potential bias; no
discernible high- or low-grade bias was observed.
On behalf of the Company,
Luke Norman, Chief Executive Officer and
Director
For further information please visit the Company
website www.leviathangold.com or contact:
Adam Ross, Investor Relations, Direct: (604)
229-9445Toll Free: 1(833) 923-3334Email: info@leviathangold.com
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. No securities regulatory
authority has either approval or disapproved of the contents of
this press release.
This news release does not constitute an offer
to sell or a solicitation of an offer to buy any of the securities
in the United States. The securities have not been and will not be
registered under the United States Securities Act of 1933, as
amended (the "U.S. Securities Act") or any state
securities laws and may not be offered or sold within the United
States unless registered under the U.S. Securities Act and
applicable state securities laws or an exemption from such
registration is available.
Forward-Looking Statements
Information set forth in this news release
contains forward-looking statements that are based on assumptions
as of the date of this news release, including with respect to
geological prospects of Leviathan’s mineral projects, planned
exploration activities, success of exploration activities, the
relevance of historical information, the continuation of
mineralization, the relevance of comparable projects, the timing of
exploration activities, general business and economic conditions;
that applicable approvals are obtained; that qualified workers,
financing, permits, approvals, and equipment are obtained in a
timely manner; that market conditions continue; that contractual
counterparties perform their obligations as required; and that
Leviathan is able to locate sufficient financing for favourable
ongoing operations. These statements reflect management's current
estimates, beliefs, intentions and expectations. They are not
guarantees of future performance. Leviathan cautions that all
forward looking statements are inherently uncertain and that actual
performance may be affected by many material factors, many of which
are beyond Leviathan’s control. Such factors include, among other
things: risks and uncertainties relating to whether exploration
activities will result in commercially viable quantities of
mineralized materials; the possibility of changes to project
parameters as plans continue to be refined; the ability to execute
planned exploration and future drilling programs;COVID-19; the
ability to obtain qualified workers, financing, permits, approvals,
and equipment in a timely manner or at all and on reasonable terms;
changes in the commodity and securities markets; non-performance by
contractual counterparties; and general business and economic
conditions, Accordingly, actual and future events, conditions and
results may differ materially from the estimates, beliefs,
intentions and expectations expressed or implied in the
forward-looking information. Although Leviathan has attempted to
identify important risks and factors that could cause actual
actions, events or results to differ materially from those
described in forward-looking statements, there may be other factors
and risks that cause actions, events or results not to be as
anticipated, estimated or intended. Consequently, undue reliance
should not be placed on such forward-looking statements. In
addition, all forward-looking statements in this press release are
given as of the date hereof. Leviathan disclaims any intention or
obligation to update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise,
save and except as may be required by applicable securities laws.
The forward-looking statements contained herein are expressly
qualified by this disclaimer.
Table 3: Full results by sample interval
of drilling at the Excelsior Reef
Hole_ID |
From (m) |
To (m) |
Interval (m) |
Sample Type |
SampleID |
Au (g/t) |
EH030 |
98.77 |
99.3 |
0.53 |
HC |
CP1962 |
0.20 |
EH030 |
99.3 |
100.17 |
0.87 |
HC |
CP1963 |
0.18 |
EH030 |
100.17 |
100.65 |
0.48 |
HC |
CP1964 |
0.04 |
EH030 |
102.33 |
103.1 |
0.77 |
HC |
CP1965 |
0.07 |
EH030 |
109.45 |
110.04 |
0.59 |
HC |
CP1987 |
0.04 |
EH030 |
110.04 |
110.63 |
0.59 |
HC |
CP1988 |
0.03 |
EH030 |
114.06 |
114.6 |
0.54 |
HC |
CP1966 |
0.11 |
EH030 |
114.6 |
115.2 |
0.6 |
HC |
CP1967 |
0.24 |
EH030 |
115.2 |
116 |
0.8 |
HC |
CP1968 |
0.12 |
EH030 |
116 |
116.67 |
0.67 |
HC |
CP1969 |
0.34 |
EH030 |
116.67 |
117.08 |
0.41 |
HC |
CP1971 |
6.34 |
EH030 |
117.08 |
117.35 |
0.27 |
HC |
CP1973 |
0.27 |
EH031 |
52.4 |
52.78 |
0.38 |
HC |
CP1974 |
0.07 |
EH031 |
52.78 |
53.15 |
0.37 |
HC |
CP1975 |
0.11 |
EH031 |
71.16 |
71.42 |
0.26 |
HC |
CP1976 |
0.56 |
EH031 |
75.28 |
76.2 |
0.92 |
HC |
CP1977 |
8.87 |
EH031 |
76.2 |
76.9 |
0.7 |
HC |
CP1978 |
0.65 |
EH031 |
78.35 |
78.7 |
0.35 |
HC |
CP1979 |
0.12 |
EH031 |
91.45 |
91.96 |
0.51 |
HC |
CP1980 |
0.03 |
EH031 |
100.69 |
101.15 |
0.46 |
HC |
CP1981 |
0.13 |
EH031 |
101.15 |
101.45 |
0.3 |
HC |
CP1982 |
0.04 |
EH031 |
101.45 |
101.7 |
0.25 |
HC |
CP1983 |
0.17 |
EH031 |
101.7 |
102.28 |
0.58 |
HC |
CP1984 |
0.08 |
EH031 |
102.28 |
102.55 |
0.27 |
HC |
CP1986 |
14.50 |
1 GeoVic (2020)
https://earthresources.vic.gov.au/geology-exploration/maps-reports-data
A photo accompanying this announcement is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/f03db329-8403-488c-933d-8562368a8c8d