MAS GOLD TO GRANT EROS RIGHT TO EARN A 17.5%
INTEREST IN LA RONGE GOLD
BELT PROPERTIES IN SASKATCHEWAN
VANCOUVER, BC, Dec. 21, 2021 /CNW/ - MAS Gold Corp.
("MAS Gold") (TSXV: MAS) and Eros Resources Corp.
("Eros") (TSXV: ERC) announce the signing of a formal
agreement (the "Agreement") granting Eros the exclusive
right to earn a 17.5% interest in all of MAS Gold's current
properties in the prospective La Ronge Gold Belt of northeastern
Saskatchewan by funding
$3,500,000 in exploration
expenditures over a six month period (the
"Transaction").
MAS Gold CEO Jim Engdahl
comments, "We would first like to thank Eros for this transaction
in funding our 2022 winter drill program. It sets MAS off on good
footing to further enhance our key assets in 2022. 2021 has been a
very successful year for MAS achieving all our milestones that we
had set with the last piece being the signing of an LOI with
Comstock announced on December 14,
2021. With the completion of this agreement in the first
Quarter of 2022, MAS will be closer to exceeding its milestone of
having an estimated 1,000,000 oz. gold resources under its
ownership.
Jim added, "I would also like to take this opportunity to thank
our whole team for accomplishing what you have done this past year.
Furthermore, I would like to thank our existing shareholders for
the strong support shown this year and like to welcome our new
group of shareholders that will be joining us via the transaction
with Comstock. All the best to you all this winter season and enjoy
a safe, joyful holiday with your family and friends as best you can
during this difficult time.
Details of the Option Agreement
The Option Agreement with Eros gives Eros the option to acquire
a 17.5% interest in MAS Gold's Preview-North, Greywacke Lake,
Elizabeth Lake and Henry Lake properties, totaling an area of
approximately 33,860 hectares which are owned 100% by MAS Gold,
subject to certain existing royalties held by third parties. The
Agreement also provides Eros the right to earn a 17.5% interest in
the Contact Lake property that MAS Gold has agreed to acquired from
the Government of Saskatchewan,
being approximately 463 hectares, if and when the Contact Lake
property is transferred to MAS Gold. Please see MAS Gold's
September 13, 2021, press release for
more information on the acquisition of the Contact Lake property.
MAS Gold expects to complete the acquisition of the Contact Lake
property early in 2022, and has recently reached an agreement in
principle with the Government of Saskatchewan to extend the deadline to
complete the transfer of the property to December 31, 2022. The Agreement does not provide
Eros with a right to earn an interest in the Preview SW gold
deposit and property that MAS Gold recently announced it has
entered into a letter of intent to acquire from Comstock Metals
Ltd. Please see MAS Gold's December 14,
2021, press release for more information on the acquisition
of the Preview SW gold deposit and property.
MAS Gold and Eros have agreed to conduct a winter 2022
exploration program and summer exploration program (the
"Program") commencing in January
2022. The work planned will focus primarily on the
Preview-North property and include: infill holes within the
North Lake deposit, as well as
step out drilling to the northeast and to the southwest; and
drilling exploration holes at the Point deposit. The Program also
anticipates compilation work leading to drilling testing of select
areas where gold mineralization was previously outlined but not
developed at the Contact Lake property. Plans have also been
outlined in the Program for a regional structural geological
mapping and analysis program at both the Preview-North and
Greywacke Lake properties.
For MAS Gold, the Transaction is a "related party transaction"
as defined in Multilateral Instrument 61-101 – Protection
of Minority Security Holders in Special
Transactions ("MI 61-101") and TSXV Policy
5.9. Eros holds more than 10% of the voting rights attached to all
MAS Gold's outstanding voting securities and the parties have
common officers and directors. The Transaction is not a "related
party transaction" for Eros. MAS Gold is relying on Section 5.5(a)
of MI 61-101 for an exemption from the formal valuation requirement
and Section 5.7(1)(a) of MI 61-101 for an exemption from the
minority shareholder approval requirement of MI 61-101 as the fair
market value of the transaction does not exceed 25% of MAS Gold's
market capitalization. As required by MI 61-101, MAS Gold
advises that it expects to file a material change report relating
to the Transaction less than 21 days before completion of the
Transaction, which MAS Gold deems reasonable in the circumstances
in order to complete the Transaction in an expeditious manner. The
Transaction is subject to acceptance by the TSX Venture Exchange
from the perspective of both MAS Gold and Eros.
About MAS Gold Corp.
MAS Gold is a Canadian mineral exploration company focused on
gold exploration projects in the prospective La Ronge Gold Belt of
Saskatchewan. In the belt, MAS
Gold operates four properties including the Preview-North,
Greywacke Lake, Elizabeth Lake and
Henry Lake properties that extend
along segments totaling roughly 60 kilometres of the geologically
prospective La Ronge, Kisseynew
and Glennie Domains that make up the La Ronge Gold Belt. MAS Gold
has also an agreement with the Province of Saskatchewan to acquire a 100% interest in the
Contact Lake property located within the boundaries of the
Preview-North property.
MAS Gold's holdings include the North
Lake, Greywacke North, Bakos and Point gold deposits and the
historically defined Elizabeth Lake
copper-gold volcanic-hosted massive sulphide deposit within four
properties totaling approximately 34,323 hectares.
The North Lake deposit located
at the Preview-North property is estimated to contain an Inferred
Mineral Resource of 18,100,000 t grading 0.85 g/t Au, hence 494,000
contained ounces of gold. The Technical Report about the updated
Mineral Resource estimate will be filed in January 2022 (see MAS Gold news release dated
December 9, 2021).
The Greywacke North deposit located at the Greywacke Lake
property hosts multiple known stratabound, high-grade
gold-bearing zones, has an updated, combined openpit and
underground Indicated Mineral Resource of 645,000 t averaging 4.90
g/t Au for 101,000 insitu ounces of gold (600,000 t at 4.89 g/t Au,
and 45,000t at 5.03 g/t Au, respectively), plus a combined openpit
and underground Inferred Mineral Resource of 410,000 t averaging
4.12 g/t Au for 55,000 insitu ounces of gold (35,000 t at 1.97 g/t
Au, and 375,000 t at 4.33 g/t Au, respectively). The
Indicated and Inferred Mineral Resources were estimated using
openpit and underground cut-off grades of 0.65 g/t Au and 1.75 g/t
Au, respectively. The Technical Report about the updated Mineral
Resource estimate will be filed in January
2022 (see MAS Gold news release dated December 6, 2021).
The Bakos deposit, located on the Contact Lake property that MAS
Gold has an agreement to acquire (see MAS Gold news release of
September 13, 2021), was first
identified by Saskatchewan Mining Development Corporation (SMDC;
later Cameco Corporation) exploration field crews in 1984.
Operations were conducted from December 1994 until
closure in December 1998. Historical production and recovery
values for the entire operation included 188,185 ounces gold
produced from 1,006,673 tonnes processed with a head grade of 6.16
g/t Au at a recovery rate o 95% (Leniuk, G., B. Bharadwaj, G.
Alderman & R. Wyka: Cameco Corporation Contact Lake
Operation, Final Report, January
1999). The mine was shut down during low metals
prices.
The Point deposit located at the Preview North property has
been the subject of multiple drill campaigns dating to the 1980's
when Saskatchewan Mining and Development Corporation (SMDC; later
Cameco Corporation) drilled 43 core holes. MAS Gold completed 13
additional holes in 2019, intersecting multiple high-grade
intercepts including 7.0 metres grading 14.99 g/t Au from 20.0 to
27.0 metres (see MAS Gold news release dated June 25, 2019).
About Eros Resources Corp.
Eros is a Canadian public company listed on the TSX Venture
Exchange. The company's business objective is the identification,
acquisition, and exploration of advanced-stage projects with a
North American focus. In addition, Eros plans to make strategic
investments with a global focus on a diverse commodity base. Eros
managements' expertise supports this strategy.
Qualified Person (QP)
The scientific and technical information contained in this news
release has been prepared, reviewed, verified, and approved by
David Tupper, P.Geo. (British Columbia), MAS Gold's VP Exploration
and a Qualified Person within the context of Canadian Securities
Administrators' National Instrument 43-101 - Standards of
Disclosure for Mineral Projects.
Caution Regarding Forward Looking Information and
Statements
This news release includes certain forward-looking statements or
information that could cause actual results to differ materially
from MAS Gold's and Eros' plans or expectations. All statements
other than statements of historical fact included in this release,
including, without limitation, completion of the planned
exploration and development programs, the incurring of
expenditures, the exercise of the option by Eros, statements
regarding metallurgical results and outcomes, any updated technical
report, are forward-looking statements that involve various 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.
Forward-looking statements are subject to a variety of risks and
uncertainties, which could cause actual events, level of activity,
performance or results to differ materially from those reflected in
the forward-looking statements, including, without limitation:
risks relating to failure of MAS Gold or Eros to satisfy the
requirement in the Agreement, a breach of the Agreement by Eros or
MAS Gold, the actual results of current and future exploration
activities, fluctuating gold prices, possibility of equipment
breakdowns and delays, cost overruns, that MAS Gold may lose or
abandon its property interests or may fail to receive necessary
licences and permits, availability of capital and financing and
general economic, market or business conditions. The
forward-looking statements included in this news release are made
as of the date hereof and MAS Gold and Eros disclaim any intention
or obligation to update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise,
except as expressly required by applicable securities
legislation.
Neither 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 news release.
SOURCE MAS Gold Corp