VANCOUVER, May 22, 2018 /CNW/ - Pacton Gold Inc.
(TSXV: PAC, OTC: PACXF) (the "Company" or
"Pacton") is pleased to announce that it has entered into a
binding letter of intent ("LOI") to acquire 100% of the
shares in Drummond East Pty Ltd ("Drummond East"), an arm's length Australian
proprietary limited exploration company wholly owned by Impact
Minerals Limited (ASX: IPT) ("Impact"). Drummond East holds seven granted tenement
licenses, comprising of a total of 1,126 sq km (the
"Property").
Highlights of the Transaction:
- Acquisition of ~1,126 sq km of strategic conglomerate
hosting exploration properties.
- Pilbara total land portfolio now increased to approximately
2,227 sq km, which equates to ~18.6% in holdings when compared
to the size of Novo Resources Corp. (TSXV: NVO) land holdings,
of approximately 12,000 sq km.
- Transaction will place Pacton as the 3rd largest
land holder in the Pilbara.
- Previous exploration indicates at least 90 km of prospective
Fortescue Group conglomerates occurring at or near-surface on its
granted licenses, in particular to the west and east of Marble
Bar as well as close to the Beatons Creek gold deposit near
Nullagine. Conglomerates identified are approximately the same age
as the Witwatersrand Basin Gold deposits of South Africa.
- Properties are directly adjacent and proximal to key
exploration properties controlled by Novo Resources Corp. and
Kairos Minerals Ltd. (ASX: KAI).
- Rock chip results of up to 11.2 g/t gold occur at the
Glen Herring Prospect 10 km west of Marble Bar in a gold-pyrite
conglomerate that extends for 25 km.
- Other gold-bearing conglomerates identified on or adjacent
to the licences.
- Access to the extensive regional knowledge and technical
expertise provided by the Impact Team, led by Managing Director
Dr. Mike Jones, who brings specific
expertise in conglomerate-hosted gold, and who conducted his
PhD studies on this style of mineralization in the northern source
areas for the Witwatersrand Basin.
"We are pleased to make accretive acquisitions that
strategically place Pacton as the third largest land holder in
Western Australia's Pilbara
conglomerate-hosted gold region. Pacton continues to further
consolidate the region through key property evaluations, and the
addition of Drummond East increases
our land holdings to 2,227 sq km," commented Alec Pismiris,
Interim President and CEO of Pacton. "The Impact Minerals
team, led by Dr. Mike Jones, have
successfully assembled a significant portfolio of advanced gold
projects that present excellent prospectivity for discovery upside
for the shareholders of Pacton. The Impact transaction solidifies
our presence in the region, and is directly in line with our
mandate to become one of the leaders in the Pilbara Gold Rush. With
a strong treasury and financial backers, we are aggressively
reviewing other opportunities."
Impact's Pilbara Gold Project and its Prospectivity
The seven 100% owned and fully granted licences cover 1,126 sq
km of ground prospective for conglomerate-hosted gold in the
Pilbara region of Western
Australia (Figure 1). They were staked after an
extensive review by Impact, following the discovery of gold in
conglomerates at the base of the Fortescue Group by Artemis
Resources Limited (ASX: ARV) and the subsequent joint venture with
Novo Resources Corp.
The discovery by Artemis Resources indicated a significant
breakthrough had been made in the search for conglomerate hosted
gold deposits of a similar age to the Witwatersrand Basin of
South Africa in the Pilbara.
Impact aggresively applied for available prospective ground in the
early stages of the Pilbara staking rush.
A preliminary review and synthesis of previous exploration data
and mapping by the Geological Survey of Western Australia (GSWA) indicates the two
most prospective conglomerate horizons within the Fortescue Group
occur within or immediately adjacent to the licences (Figure
2):
- Conglomerates of the Hardey Formation. These rocks host the
Beatons Creek resource (Tetra Tech 08/31/15 Measured and Indicated 3.39 Mt at 2.7
g/t gold for 299Koz Au, Inferred 3.04 Mt at 2.7 g/t gold for 259Koz
Au) held by Novo Resources Corp. near Nullagine (Figure 2).
- Conglomerates at the base of the Mt Roe Basalt. The recent gold
discovery at Purdeys Reward-Comet Well by Novo Resources Corp. and
Artemis Resources Limited occurs within this unit (Figure 2).
Previous exploration indicates that the prospective
conglomerates occur over at least 90 km of trend at or close to
surface within the licences, in particular to the west and east of
Marble Bar, as well as close to the Beatons Creek deposit near
Nullagine.
West of Marble Bar, previous exploration in the district
highlighted several gold occurrences associated with the
conglomerate horizons on and along trend from Impact's licence
applications EL45/4972 and EL45/4971 (Figure 3).
Four main gold-bearing conglomerate occurrences have been
discovered that demonstrate similar characteristics to those that
occur within the Witwatersrand Basin including:
- Glen Herring Prospect: previous rock chip samples in
1989 returned assays of up to 11.2 g/t gold from a gold-pyrite
bearing conglomerate within the Hardey Formation, which extends for
10 km of strike on licence EL44/4972 (Figure 3).
- Shady Camp Well Prospect: one diamond drillhole
was completed by Western Mining Corporation in 1976 to test a
surface gold and radiometric anomaly in conglomerate-sandstone and
returned 0.9 m at 0.6 g/t gold from
174 m downhole in quartz pebble
conglomerate with rounded pyrite in the matrix. The conglomerate
occurs close to a carbonaceous shale unit. Further, radiometric
gold-bearing conglomerates in the Hardey Formation have been
identified by previous explorers for at least 10 km along strike
from Shady Camp Well.
The same conglomerates also extend for a further 15 km along
strike to the southwest outside of Impact's licence, where historic
assays returned up to 2.1 g/t gold (see Figure 3).
- Gold-bearing pyritic quartz pebble conglomerates have been
identified at the base of the Mt Roe Formation by several previous
explorers at the Contact Creek Prospect which lies 6 km west
of Impact's licence E45/4971 with the the best rock sample result
of 15.9 g/t gold by Novo Resources in 2013 (see Figure 3). This
gold-bearing conglomerate extends to the east and occurs very close
to surface over at least 4 km of strike on Impact's licence
EL45/4971.
- The Hardey Formation sandstones and conglomerates have been
mapped by the GSWA over at least 25 km of strike on EL45/4971 and
rock samples of conglomerate with very strong pyrite returned up to
0.26 g/t gold by CRA Exploration in 1987 (Figure 3).
The chemistry and characteristics of the conglomerates from the
four propsect areas are similar to those observed in
Witwatersrand-style conglomerate-hosted gold deposits.
These are significant observations and are very encouraging for
further exploration on Pacton's newly acquired licences.
These characteristics include:
- Widespread gold-bearing conglomerates in places.
- The identification of rounded detrital pyrite within the matrix
between conglomerate clasts.
- The occurrence of black carbonaceous shale that occurs in close
proximity to the conglomerates.
LOI Terms
Under the terms of the LOI, which will be formalized by a
definitive agreement among the parties, the Company will purchase a
100% ownership interest in Drummond
East by paying Impact a total of CAD$350,000 and issuing to Impact 2,125,000
common shares of Pacton.
In addition, Pacton will pay a bonus (the "Discovery
Bonus") to Impact of CAD$500,000
if Pacton publishes measured, indicated, or inferred gold resources
of over 250,000 ounces on the Property. Pacton will grant Impact a
2% net smelter royalty in respect of the Property on standard
industry terms to be agreed between the parties (the "NSR").
The parties agree that Pacton shall, at all times, retain an
exclusive and unlimited right to purchase 50% of the NSR back from
Impact for CAD$500,000.
A finder's fee will be paid to COMVERJ Pty Ltd in respect of the
transaction pursuant to the policies of the TSX Venture
Exchange.
This transaction is subject to the acceptance of the TSX Venture
Exchange.
About Pacton Gold
Pacton Gold Inc. is a Canadian junior exploration company
focused on acquiring, exploring and advancing mineral assets in key
mining friendly locations globally.
The technical content of this news release has been reviewed and
approved Peter Caldbick, P.Geo., a
director of the Company and a Qualified Person pursuant to National
Instrument 43-101. The qualified person has not yet verified
the data disclosed, including sampling, analytical, and test data
underlying the information or opinions contained in the written
disclosure.
On Behalf of the Board of Pacton Gold
Inc.
Alec
Pismiris
Interim President & CEO
This news release may contain or refer to forward-looking
information based on current expectations, including, but not
limited to the Company acquiring an interest in properties
controlled by Impact Minerals Limited and completion of the
proposed transaction described herein, the prospect of the Company
achieving success in exploring the Property and the impact on the
Company of these events, including the effect on the share prices.
Forward-looking information is subject to significant risks and
uncertainties, as actual results may differ materially from
forecasted results. Forward-looking information is provided as of
the date hereof and we assume no responsibility to update or revise
such information to reflect new events or
circumstances.
Neither TSX Venture Exchange, the Toronto Stock Exchange nor
their 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.
View original content with
multimedia:http://www.prnewswire.com/news-releases/pacton-gold-becomes-3rd-largest-land-holder-in-australias-pilbara-gold-rush-and-significantly-expands-its-gold-bearing-conglomerate-portfolio-300652508.html
SOURCE Pacton Gold Inc.