TriMetals Mining Inc. Announces Lease Of the Historic Homestake Claims at the Gold Springs Project
November 01 2017 - 5:00AM
TriMetals Mining Inc. (TSX:TMI)
(OTCQX:TMIAF)
, (the “Company”), is pleased to
announce that its Nevada subsidiary, Gold Springs, LLC (“GS LLC”)
has entered into an agreement (the “Lease Agreement”) to lease six
patented lode claims (the “Homestake Claims”) located at the
northern extent of the Gold Springs project area within Nevada.
Pursuant to the terms of the Lease Agreement, GS LLC is to lease
the Homestake Claims for an initial period of 30 years and is to
pay the lessor an initial rental payment as well as annual rental
payments. In addition, upon commencement of commercial production,
GS LLC is to pay the lessor a 3% net smelter returns royalty (the
“NSR Royalty”), which NSR Royalty is to be increased to (a) 3.5% if
the average price per troy ounce of gold for the calendar quarter
is greater than US$1,800, and (b) 4.0% if the average price per
troy ounce of gold for the calendar quarter is greater than
US$2,000 (the “Second NSR Increase”), subject to a minimum annual
royalty payment of US$10,000. GS LLC has the right and option,
prior to commencement of commercial production on the Homestake
Claims, to buy out the Second NSR Increase for the sum of US$1
million, payable within 60 days from and after commencement of
commercial production.
The Homestake Claims were historically worked as high-grade
underground operations with undocumented production. The claims
have not been subjected to modern exploration as they were last
active prior to World War II.
Ralph Fitch, President and CEO of the Company stated, “TMI is
excited to have completed the lease on the Homestake Claims as this
area displays all of the geologic characteristics we see in the
resources we have developed thus far at Gold Springs. This block of
claims has never been subjected to modern-day exploration,
including drilling, and we are looking forward to being the first
group to test this exciting target. The system is exposed for 650
metres along strike and up to 400 metres in width with the
potential to continue under post mineral cover and extends the
entire 1.8 kilometre length of the claim area. With the addition of
this 104 acre claim block TMI has yet another excellent target to
explore moving forward.”
The Homestake Claims are located 1,000 metres east of the Gray
Eagle resource area in Nevada. The claim block is 1.8 kilometres
long by 200-400 metres wide. Historic mining exploited high-grade
mineralization hosted in two stacked, banded quartz veins that are
westward dipping and structurally controlled by north-south, Basin
and Range related extension faults. This style of faulting occurs
regionally across the Gold Springs area and serves as part of the
controls within the Jumbo resource areas.
The stacked veins are each 2-4 metres wide and can be traced for
650 metres along strike before they are lost under post mineral
cover. The system is well exposed in old mine cuts that span
several hundred metres of strike length. Veins are surrounded by
breccia and stockwork quartz vein zones which extend for up to 400
metres in width before they are lost under the post mineral cover.
An old mine trench at the southernmost exposure of the vein systems
exposes the breccias associated with the vein systems indicating
that the system continues underneath the cover to the south. To the
north, the vein trace is lost under post mineral tuffs, however the
associated breccias outcrop 400 metres north of where the vein
traces are lost, suggesting the mineralization may continue under
the post mineral cover and extend for the full 1.8 kilometer length
of the claims.
TMI will initiate surface mapping and sampling on the newly
leased claims in the immediate future.
About TriMetals Mining Inc.
TriMetals Mining Inc. is a growth focused mineral exploration
company creating value through the exploration and development of
the near surface, Gold Springs gold-silver project in mining
friendly Nevada and Utah in the U.S.A. and by demonstrating the
exploration potential at the very large Escalones copper-gold
porphyry deposit in Chile.
The Company’s approach to business combines the team’s track
record of discovery and advancement of large projects, key
operational and process expertise, and a focus on community
relations and sustainable development. Management has extensive
experience in the global exploration and mining industry.
The Company’s common shares and Class B shares are listed on the
Toronto Stock Exchange under the symbols “TMI” and “TMI.B” and the
common shares and Class B shares also trade on the OTCQX market
under the symbol “TMIAF” and “TMIBF”. Note that the Class B
shares have no interest in the properties or assets of the Company
other than a collective entitlement to 85% of the net cash, if any,
(after deducting all costs, taxes and expenses and the third-party
funder's portion thereof) received by TMI from award or settlement
in relation to the Company’s subsidiary South American Silver
Limited’s arbitration proceeding against Bolivia for the
expropriation of the Malku Khota project in 2012. Additional
information related to TriMetals Mining Inc. is available at
www.trimetalsmining.com and on SEDAR at www.sedar.com.
Qualified Person
The Qualified Person on the Gold Springs property is Randall
Moore, Executive Vice President of Exploration – North America of
TriMetals Mining Inc. and he has reviewed and approved the content
of this press release.
Forward Looking Statements
Certain statements contained herein constitute
“forward-looking information” under applicable Canadian securities
laws (“forward-looking statements”). Forward looking statements
look into the future and provide an opinion as to the effect of
certain events and trends on the business. Forward-looking
statements may include words such as “continue”, “target”,
“potential”, “suggests”, “will” and similar expressions.
Interpretations of exploration results, including the strength of
mineralization, are also forward-looking statements. These forward-
looking statements are based on current expectations and entail
various risks and uncertainties. Actual results may materially
differ from expectations if known and unknown risks or
uncertainties affect our business or if our estimates or
assumptions prove inaccurate. Factors that could cause results or
events to differ materially from current expectations expressed or
implied by the forward-looking statements, include, but are
not limited to, risks of the mineral exploration industry
which may affect the advancement of the Gold Springs project,
including possible variations in mineral resources, grade, recovery
rates, metal prices, capital and operating costs, and the
application of taxes; availability of sufficient financing to fund
planned or further required work in a timely manner and on
acceptable terms; availability of equipment and qualified
personnel, failure of equipment or processes to operate as
anticipated, changes in project parameters, including water
requirements for operations, as plans continue to be refined;
regulatory, environmental and other risks of the mining industry
more fully described in the Company’s Annual Information Form and
continuous disclosure documents, which are available on SEDAR
at www.sedar.com. The assumptions made in developing
the forward-looking statements include: the accuracy of current
resource estimates and the interpretation of drill, metallurgical
testing and other exploration results; the continuing support for
mining by local governments in Nevada and Utah; the availability of
equipment and qualified personnel to advance the Gold Springs
project; execution of the Company’s existing plans and further
exploration and development programs for Gold Springs, which may
change due to changes in the views of the Company or if new
information arises which makes it prudent to change such plans or
programs.
Readers are cautioned not to place undue
reliance on the forward-looking statements contained in this press
release. Except as required by law, TMI assumes no obligation to
update or revise any forward-looking statement, whether as a result
of new information, future events or any other reason. Unless
otherwise indicated, forward-looking statements in this press
release describe the Company’s expectations as of November 1,
2017.
NEWS RELEASE: 17-15
TriMetals Mining Inc.
Contact:
Ralph Fitch President
& CEO 303.584.0606 ralphfitch@trimetalsmining.com |
Rebecca Moriarty Chief
Financial Officer 303.584.0606 rmoriarty@trimetalsmining.com |