VANCOUVER, Aug. 27, 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 the conglomerate gold rights from
Calidus Resources Limited (ASX: CAI) ("Calidus") over
a portfolio of eight exploration licenses. The Gold Rights relate
to material that overlies the basement rocks and that is formed of
transported material. Specifically, this means the Fortescue Group
conglomerates that overlie the Warrawoona Greenstone belt
("Conglomerate Gold"). The portfolio includes six granted
exploration licenses and two exploration licenses under application
for a total of 357.5 km2 (the
"Property").
Highlights of the Transaction:
- Strategic portfolio of 6 granted exploration licenses
and 2 exploration licenses under application (357.5
km2).
- Rights to explore and mine for any Conglomerate Gold on the
Property.
- Directly adjacent to Haoma Mining's Marble Bar tenements where
numerous nuggets have been recovered from conglomerates at the Just
in Time deposit (Haoma report for quarter ended September 30, 2017).
- Calidus has recovered nuggets adjacent to a mapped conglomerate
and has mapped various sulphidic conglomerates in the conglomerate
gold rights area (Calidus 23 November
2017).
- Conglomerate Gold rights are part of the tenement package that
Calidus is exploring that currently hosts the expanding Warrawoona
gold project (Figure 3 below). Warrawoona's current global resource
is estimated to be 10.5M tonnes @
2.11g/t Au for 712,000 ounces of gold. (See details below.) .
- Calidus is embarking on a pre-feasibility study in the first
half of 2019. If a standalone gold plant is built at Warrawoona,
Pacton has a right to negotiate access on commercial terms
following plant construction.
"Securing the conglomerate gold rights over this significant
portfolio of tenements from Calidus further consolidates Pacton's
position in the Pilbara region of Western
Australia." commented Alec Pismiris, Interim
President and CEO of Pacton.
The Conglomerate Gold rights encompass eight tenements that
cover all known Mt Roe basalt occurrences on Calidus' tenements. In
total, the tenements have 40 km of outcropping Mt Roe basalt that
have seen limited exploration. Access is very easy with all
outcrops being within a few kilometres of major roads, thereby
allowing rapid access for Pacton.
The Marble Bar application lies along strike from Haoma Mining's
Just in Time prospect, where the discovery of numerous gold nuggets
was announced in Haoma's September 30,
2017 quarterly report.
The Callidus Warrawoona project is an orogenic deposit which is
currently being aggressively drilled. Warrawoona's global resource
is currently represented as 10.5M
tonnes @ 2.11g/t Au for 712,000 ounces of gold. (Published by
Calidus on December 17, 2017)
- the Klondyke Prospect has a current 2012 JORC Code compliant
Inferred Resource of 9.9M t at
2.06g/t Au for 654,000 ounces, and includes 532,000 ounces in the
Indicated Category;
- the Copenhagen Prospect has a current 2012 JORC Code compliant
Inferred Resource of 180,000t @ 6.1g/t Au for 36,000 ounces;
- the Fieldings Gully Prospect has a current 2012 JORC Code
compliant Resource of 0.4Mt @ 1.65g/t Au for 22,000 ounces;
LOI Terms
Under the terms of the LOI, which will be formalized by a
definitive agreement among the parties, the Company will pay a
non-refundable payment of CDN$10,000
and issue to Calidus or its nominees 7,000,000 common shares. The
LOI includes a right to deferred compensation whereby Calidus may
receive up to 3,000,000 additional common shares of Pacton on the
first anniversary of completion of the transaction based on the
30-day VWAP of Pacton's shares on the date of such issuance.
This transaction is subject to the acceptance of the TSX Venture
Exchange.
The Company also announces that Alfred
Stewart has resigned as a director.
About Pacton Gold
Pacton Gold (TSXV: PAC) (OTC: PACXF) is a well-financed
Canadian junior with key strategic partners focused on the
exploration and development of conglomerate-hosted gold properties
located in the district-scale Pilbara gold rush in Western
Australia. The Company recently raised approximately
$5.5 million, currently controls the
third largest conglomerate-hosted gold property portfolio totaling
in excess of 2,500 km2, and continues to aggressively
review additional accretive acquisitions.
The technical content of this news release has been reviewed and
approved by 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 the Conglomerate Gold rights, the
prospect of the Company achieving success in exploring the Property
and the impact on the Company of these events, including the effect
on its share price. 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. References to other issuers with nearby projects is
for information purposes only and there are no assurances the
Company will achieve similar results.
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.
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SOURCE Pacton Gold Inc.