VANCOUVER, Feb. 1, 2018 /CNW/ - Dynasty Gold Corp. (TSX-V:
DYG) (FWB: D5G) (OTC: DGDCF) ("Dynasty" or the "Company") is
pleased to announce that it has signed an option agreement with
Teck Resources Limited (TSX: TECK, "Teck") to acquire a 100%
interest in the Thundercloud gold property ("the Property") located
in the Archean Manitou-Stormy Lakes Greenstone belt in Ontario. The belt contains numerous gold
showings, several deposits and historic past producers including
the Big Master Mine (1902-1943) and the Laurentian Mine
(1906-1909). Results to date indicate excellent potential to define
bulk-tonnage orogenic gold mineralization with potential for high
grade mineralization.
The Property
The Property consists of 2,250 hectares, located 47 kilometres
southeast of Dryden, northern
Ontario. It is readily accessible
from the Trans-Canada Highway (Hwy 17). Dryden is a resource-based town with excellent
infrastructure necessary for mining operations. Several large
scale mining operations in the area include New Gold's Rainy River
Mine (6.4 million oz gold and 18.7 million oz silver), and
Goldcorp's Red Lake Gold Mine (9.25 million oz gold) as well as
multiple multi-million ounce gold reserves, defined at the Canadian
Malartic Hammond Reef deposit (5.8
million oz gold), and First Mining Gold's Springpole deposit (4.9
million oz gold).
Highlights of drill results from historic work and the recent
drilling by Teck (2007 and 2008) and Laurentian Goldfields (2011)
include:
- 113.0 m @ 1.72 g/t Au
(88-10)
- 60.30 m @ 1.46 g/t Au
(88-05)
- 55.25 m @ 2.19 g/t Au (TC08-11),
including 1 m @ 37.5 g/t Au,
9.34 m @ 7.91 g/t Au and 21.73 m @ 4.63 g/t Au
- 29.66 m @ 0.77 g/t Au including
9.04 m @ 2.20 g/t Au (TC08-09)
- 68.8 m @ 1.55 g/t Au
(TC11-001)
- 81.0 m @ 1.31 g/t Au
(TC11-006)
The highest grade from historical drilling returned up to 192.7
g/t gold over narrow intervals.
Fladgate Exploration Consulting was contracted in 2011 to create
a 3D resource model of the Thundercloud historical drill data,
assuming a specific gravity of 2.7 for all rocks. The model for the
Pelham Zone exploration target showed an estimated potential amount
of contained gold of 300,000 ounces, at a head grade of 1.6 g/t Au,
using a 0.5 g/t cut-off grade, in the different grade shells.
This initial resource estimate was developed for targeting
purposes, and it is not National Instrument 43-101 compliant.
The main focus of the work in the past was in the Pelham Zone
with limited drilling. The West Contact Zone, where trenching
results in 2006 and 2007 consistently returned 1.0-9.8 g/t Au, 8.02
g/t Au over 39.0 m's including 89.4 g/t over 3.0 m, has seen little follow up work.
The Company has not independently verified any of the results
reported in this news release.
Terms
Subject to the Exchange's approval, the Company has an option to
earn up to a 100% interest in the Property by spending $6 million over five years and by issuing
1,000,000 common shares of the Company to Teck. The first
500,000 common shares are to be issued within 7 days of the
Exchange's approval of the option agreement and the second 500,000
common shares are to be issued on the first anniversary of signing
of the agreement. The Company must spend $300,000 in mandatory expenditures in the first
year.
Teck retains a back-in right to earn back to a 65% interest in
the Property by spending $15 million
over four years ("Back-in Right"). Teck can elect to pursue the
Back-in Right by delivering notice within 90 days following receipt
of the Dynasty Expenditure Notice. If the Back-in Right is
not exercised, Teck would retain a 2% net smelter returns royalty
("NSR") that can be reduced by the Company to a 1.5% NSR by making
a cash payment of $1 million to
Teck.
"It is an exciting project with high grade targets as well as
bulk tonnage potential. We will be able to build on the good work
done by Teck and others as we plan a drill program," said
Larry Kornze, Vice President of
Exploration.
"The Property is in a proven and well established mining
district with many multi-million oz gold deposits and developed
reserves," stated Ivy Chong,
President and CEO. "It is a great opportunity for the Company to
expand its portfolio into one of the most prolific mining areas in
North America."
The Company's Director, Larry
Kornze, a 'qualified person' for the purposes of National
Instrument 43-101 Standards of Disclosure for Mineral Properties,
has reviewed the technical data contained in this news release.
About Thundercloud Property
Geology
The Manitou-Stormy Lakes Greenstone belt lies within the western
Wabigoon Subprovince, a granite-greenstone terrane of the Superior
Province. A number of thick volcano-sedimentary sequences
consisting of mafic to felsic lavas and associated intrusions and
pyroclastic rocks, all of which are generally overlain by
sedimentary sequences, characterize the belt. Gold-bearing
mineralized zones are focused in a north-south corridor within the
central portion of the property. Host rocks comprise tholeiitic
basalts overlain by a suite of clastic rocks of the Stormy Lake
Group, including conglomerates, breccias and sandstones with a wide
range in matrix and clast compositions. These rocks form a
structurally complex central corridor between the intermediate
composition Taylor Lake stock
(2695±4 Ma: Davis et al. 1982) to the west and the felsic
Thundercloud quartz-feldspar porphyry ("QFP") to the east.
Mineralization
Gold is associated with hydrothermal alteration domains
characterized by biotite-magnetite alteration with minor quartz
veins and pyrrhotite. Biotite-magnetite alteration is in turn cut
by chlorite-carbonate and pyrite. Both pyrrhotite and pyrite occur
as disseminations, clots and veins, and are variably
strained. In general, there is a correlation between sulphide
concentration and gold grade, though a high ratio of pyrrhotite
relative to pyrite appears to be the key for gold enrichment.
Given the importance of magnetite and pyrrhotite in the
hydrothermal assemblage, several untested ground magnetic targets
warrant trenching and/or drill testing. The presence of sulphides
in association with gold suggests that chargeability is a key
targeting tool, and this is confirmed by an excellent association
of gold with a strong chargeability anomaly in the Pelham area. Additional modelled chargeability
anomalies remain untested.
About Dynasty Gold Corp.
Dynasty Gold Corp. is a Canadian gold exploration company
currently focused on gold exploration in North America.
For more information on the Company and its projects, please
refer to the website www.dynastygoldcorp.com.
ON BEHALF OF THE BOARD OF
DYNASTY GOLD CORP.
"Ivy Chong"
_________________________________
Ivy Chong, President & CEO
This press release contains certain "forward-looking
statements" that involve a number of risks and uncertainties. There
can be no assurance that such statements will prove to be accurate
and actual results and future events could differ materially from
those anticipated in such statements. The TSX Venture Exchange has
not reviewed and does not accept responsibility for the adequacy or
accuracy of this release.
SOURCE Dynasty Gold Corp.
