- Leviathan is well funded with approximately $12.5 million cash on hand
- drill permits in place to allow for immediate
exploration
- trading expected to commence February
10, 2020 with symbol LVX
VANCOUVER, BC, Feb. 1, 2021 /CNW/ - Fosterville South
Exploration Ltd. ("FSX" or the "Company") (TSXV: FSX)
(OTC: FSXLF) (Germany: 4TU) and
Leviathan Gold Ltd. ("Leviathan") are pleased to announce
that Leviathan has received conditional approval from the TSX
Venture Exchange ("TSXV") to list its common shares on the
TSXV under the symbol "LVX"
Final approval of the listing is subject to the Leviathan
meeting certain standard requirements of the TSXV. Leviathan
expects to satisfy all of the requirements and will make a further
announcement once the TSXV has issued a bulletin confirming the
date on which trading on the TSXV will commence.
As part of the conditional approval for the listing, the TSXV
required that the Leviathan shares distributed to FSX shareholders
on November 23, 2020 be subject to a
Tier 2 Value Escrow such that 10% of the shares issued to FSX
shareholders as part of the spinout will be freely tradeable on the
listing date and the balance of the Leviathan Shares would be
released in 15% increments every 6 months following the listing
date with the final release occurring 36 months following the
listing date of Leviathan. The TSXV required escrow replaces the
escrow previously announced by FSX and Leviathan. Should Leviathan
become a Tier 1 issuer, as defined by the rules of the TSXV, the
TSXV mandated escrow release will be accelerated.
Fosterville South Chief Executive Officer, Bryan Slusarchuk, states, "With superb
projects, a strong cash balance and excellent management team,
Leviathan is well positioned to build shareholder value through
exploration at Avoca and Timor.
Leviathan Gold Chief Executive Officer, Luke Norman, states, "We are all very excited
to embark on our exploration of Avoca and Timor. Set in a
world-class gold mining jurisdiction, with historic high-grade
deposits and no modern-day exploration having been conducted, this
is a remarkable opportunity. The quality and the scope of the land
tenures speaks volumes to Rex Morton
and team at Fosterville South. As such, we want to thank all the
Fosterville team and shareholders
who have made this possible. We look forward to working with all of
you as we collectively build shareholder value with our strong
treasury position, tier 1 gold projects and great
shareholders."
Avoca Project
The Avoca project is centred on mesothermal quartz-vein-hosted
gold and related placer-style "deep lead" gold mineralization.
There is a considerable local history of mining both kinds of
deposit. The term "deep lead" refers to buried auriferous river bed
deposits. The Avoca goldfield produced approximately 750,000 ounces
of gold largely from alluvial gold deposits.
The Avoca project is located approximately 183 kilometres west
northwest of the Victorian state capital Melbourne, with good
road access. Geologically, the Avoca project occurs within the
Stawell zone, west of the Bendigo and Melbourne zones of
the Lachlan Fold Belt.
Having previously been mined with a significant amount of gold
production from both alluvial and hardrock high-grade sources,
Fosterville South considers the Avoca project is highly prospective
for hardrock structurally controlled gold deposits. A number of
major fault zones have been recognized that strike for several
kilometres. Gold mineralization within the Stawell zone is
generally base metal sulphide related, which Fosterville South sees
as an opportunity for disseminated or fine-grained gold
mineralization.
The significant hard rock historic mines within the Avoca
licence include the high-grade:
- Pyrenees reefs -- 16,199 tons mined for 16,602 ounces of gold
to 130 metres at an average recovered grade of 32 g/t gold, worked
from 1860 to 1912;
- Excelsior reef -- 13,200 tons mined for 9,260 ounces of gold to
100 metres at an average recovered grade of 22 g/t gold, worked
from 1909 to 1915;
- Vale's reefs -- 1,444 tons mined for 1,388 ounces of gold to 52
metres at an average recovered grade of 29.4 g/t gold, worked from
1865 to 1883; and
- Monte Christo reefs -- 2,795 tons mined for 937 ounces of
gold to 30 metres at an average recovered grade of 10.3 g/t gold,
worked from 1872 to 1877.
The production noted above was obtained from State of Victoria
Mining Surveyors and Registrar's quarterly reports from 1860 to
1891 and annual reports issued thereafter. All the production from
these reefs occurred within the Avoca licence.
Defined mineralization shoots are present at both the Pyrenees
reef and Excelsior reef, as shown from the underground mine plans
held for both deposits.
In terms of alluvial gold deposit potential, the Avoca subbasin,
located within the Avoca project, is also projected to contain one
of the largest unmined deep lead alluvial gold deposits
within Victoria.
Timor project
The Timor project occurs immediately east of the Avoca project
and occurs within the Bendigo zone of the Lachlan fold belt.
The Timor project area contains numerous hardrock and alluvial
gold deposits evidenced by significant historical workings.
Historical alluvial production within the Timor project area
is in the region of 640,000 ounces of gold.
Around 20 hardrock workings can be considered to have been
significant producers. These include the Leviathan group of mines,
with recorded gold production of 56,474 ounces of gold from 189,085
tonnes, equating to a recovered grade of approximately 9.14 g/t
gold. The Leviathan structural corridor hosts several parallel
quartz veins with most of the production coming from one mine
active in the early 1900s. Significant potential occurs within the
various other veins and faults within the corridor to the
north.
In addition, Shaw's reef produced 16,881 tons mined for 12,623
ounces of gold to 130 metres at an average recovered grade of 22.9
g/t gold, worked from 1883 to 1891. Along strike of this fault zone
arsenopyrite and stibnite mineralization is recorded in association
with the gold mineralization indicating possible epizonal
Fosterville-style gold mineralization.
Both these former mines lie on separate large regional
north-south structures known to occur for tens of kilometres with a
number of hardrock workings over their length. Neither of these two
major structures have had significant drilling within the tenement.
One traverse of RC drilling was carried out across the Leviathan
structure and one diamond drill hole too. No drilling has occurred
specifically on the Shaw's reef fault zone. These two mineralized
structures are a primary focus for exploration within the
project.
Qualified Person
The technical content of this news release has been reviewed,
verified and approved by Rex Motton,
AusIMM (CP), COO and Director of FSX, a qualified person as defined
by NI 43-101.
About Fosterville South Exploration Ltd.
Fosterville South has two large, 100% owned, high-grade epizonal
gold projects called the Lauriston and Golden Mountain Projects, a
large group of tenement applications called the Providence Project
and a large group of recently consolidated tenement applications
called the Walhalla Belt Project, all in the state of Victoria, Australia. The Fosterville South
land packaged, assembled over a multi-year period, notably includes
a 600 sq. km property immediately to the south of and within the
same geological framework that hosts Kirkland Lake Gold's Fosterville tenements. Additionally,
Fosterville South has a gold-focused project called the Moormbool,
Project, which is also located in the state of Victoria, Australia.
Four of Fosterville South's properties (Lauriston, Providence, Golden
Mountain and Walhalla Belt) have had historical gold
production from hard rock sources despite limited modern
exploration and drilling.
On behalf of the Company,
Bryan Slusarchuk, Chief Executive
Officer and Director
Neither the 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 release. No securities regulatory authority has
either approval or disapproved of the contents of this press
release.
This news release does not constitute an offer to sell or a
solicitation of an offer to buy any of the securities in
the United States. The securities
have not been and will not be registered under the United States
Securities Act of 1933, as amended (the "U.S. Securities
Act") or any state securities laws and may not be offered or
sold within the United States
unless registered under the U.S. Securities Act and applicable
state securities laws or an exemption from such registration is
available.
Forward-Looking Statements
Information set forth in this news release contains
forward-looking statements that are based on assumptions as of the
date of this news release, including with respect to the timing of
the listing of the Leviathan common shares on the TSXV and
the geological prospects of Leviathan's and FSX's mineral projects.
These statements reflect management's current estimates, beliefs,
intentions and expectations. They are not guarantees of future
performance. FSX cautions that all forward looking statements are
inherently uncertain and that actual performance may be affected by
many material factors, many of which are beyond their respective
control. Such factors include, among other things: risks and
uncertainties relating to corporate transactions, purchasing the
Avoca and Timor properties and listing a new vehicle on the TSXV.
Accordingly, actual and future events, conditions and results may
differ materially from the estimates, beliefs, intentions and
expectations expressed or implied in the forward-looking
information. Except as required under applicable securities
legislation, FSX does not undertake to publicly update or revise
forward-looking information.
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SOURCE Fosterville South Exploration Ltd.