Solstice Gold Corporation (TSXV:SGC)
(“Solstice”, the “Company”, “we” or “our”) is pleased to
announce we have entered into an option agreement to acquire a 100%
interest in the Red Lake Extension project (“RLX”, or the
“Project”) consisting of 10 claims (164 units, ~3300 ha) located in
the northern part of the Red Lake Gold District (Fig 1). Solstice
acquired the Project, from Gravel Ridge Resources Ltd, based on our
interpretation that the RLX covers approximately 14 km of strike
length of a prominent geological structure which corresponds to the
surface expression of a deep structure recently identified, using
historical seismic surveys by Ministry of Northern Development and
Mines (MNDM) geologists, as the third major structure in the
district*. According to the MNDM, the other two major structures
correlate with the important gold deposits of the Red Lake Gold
Camp, the Red Lake Gold Complex (Evolution Mining) and LP fault of
the Dixie project (Great Bear Resources).
“Having spent over 16 years of my career
successfully exploring the Red Lake Gold Camp, it is an area that I
and the Solstice team know very well and is truly prolific. It has
repeatedly shown that there are gold deposits waiting to be found
by strong technical teams who are capable of correctly interpreting
complex geology. The Red Lake Extension project covers a key
portion of a major structure in the Red Lake camp whose potential
importance has only recently been revealed through updated
geological interpretations. Based on my long experience in the Red
Lake Camp this area is a compelling exploration target.
The addition of the Red Lake Extension project
gives Solstice a second top-tier exploration asset that will allow
the Company to explore in two of the world’s top gold jurisdictions
year-round. With our 866 km² drill-ready KGP Project adjacent
to the Meliadine deposit (2P: 4.07MM oz / 6.1 g/t, M&I: 2.80 MM
oz / 3.52 g/t, Inf: 2.63 MM oz / 5.60 g/t)** in Nunavut and now 14
km of prospective strike in one of the most prolific Gold Districts
in North America, Solstice has a unique value proposition vs our
$8MM market cap today. With our proven exploration team and the
financial backing of our experienced board with strong insider
ownership of almost 33%, Solstice is well positioned for
exploration success and significant value creation for our
shareholders,” stated Chairman David Adamson.
During his successful 16 years of exploration in
the Red Lake camp, David Adamson was a co-award winner for the
discovery of Battle North Gold Corporation’s Bateman Gold
deposit*** and was instrumental in the acquisition of many of the
Red Lake district properties in the Battle North portfolio.
This new Red Lake Project comprises
approximately 33 km² and covers the interpreted extension of
the Red Lake Greenstone Belt. Mapping by Ontario government
geologists indicates the Project is underlain by greenstone and
based on a 2008 government airborne survey****, is associated with
extensive (139) conductors. It is accessible from the town of Red
Lake year-round via an arterial road and then by logging roads and
bush trails. There are currently two mines and operating mills and
a third project in feasibility located within 60 km radius of the
Red Lake Extension Property; Evolution Mining’s Red Lake Complex
and Pure Gold Mining’s Madsen Mine which was just recently put into
production along with Battle North’s Bateman Project and Mill which
is expected to be producing first gold in 2022. These three mills
within trucking distance would improve the economics of any
potential discovery. In addition, only 12 km to the south along the
same structure Evolution Mining and Pacton Gold Inc. are drilling
off mineralized zones on their joint venture, the Sidace Lake gold
project.
Additional details regarding the RLX Project are
available in updated presentation on the Company’s website at
www.solsticegold.com.
Figure 1: RLX property location map on shadow
mag
base:https://www.globenewswire.com/NewsRoom/AttachmentNg/868855be-3cdb-4ae3-be9a-0523dadc337c
The Company is currently formulating plans for a
spring program on the Red Lake extension program consisting of
ground-work which will be designed to identify drill targets. This
program will be fully funded by the company’s current cash
reserves.
The terms of the transaction are skewed in
favour of exploration success. Cash payments totaling $106,000 over
three years and 600,000 shares are to be issued in two stages,
along with a 1.5% NSR that can be reduced to 0.5% for combined
payments of $1.5 million at any time prior to commercial
production. Completion of the transaction remains subject to
regulatory approval.
Table 1: Terms of Option Agreement
|
|
Cash |
|
Solstice Shares |
|
|
On Signing |
$22,000 |
|
300,000 |
|
|
End of Year 1 |
$24,000 |
|
300,000 |
|
|
End of Year 2 |
$30,000 |
|
|
|
|
End of Year 3 |
$30,000 |
|
|
|
|
Total |
$106,000 |
|
600,000 |
|
About Solstice
Solstice is a gold-focussed exploration company
engaged in the exploration of our high-quality exploration assets
in top tier jurisdictions. Our 33 km² Red Lake Extension
project is located on the north end of the prolific Red Lake Gold
District. Our district scale KGP project covers 886 km² with
certain other rights covering an adjacent 683 km², all with no
underlying option or earn in payments. KGP has seen over $12MM
dollars spent on significant field work, identified a 10
km² gold boulder field and now prepared with multiple drill
ready targets. KGP is located in Nunavut, Canada only 26 km from
Rankin Inlet and approximately 7 km from the Meliadine gold
deposits owned by Agnico Eagle Mines Ltd. Solstice has 99.5 million
shares outstanding.
Solstice is committed to responsible exploration
and development in the communities in which we work. For more
details on Solstice Gold, the Red Lake Extension Project and the
KGP Project, please see our Corporate Presentation available at
www.solsticegold.com.
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 release.
Sandy Barham, M.Sc., P.Geo., Senior Geologist,
is the Qualified Person as defined by NI 43-101 standards
responsible for reviewing and approving the technical content of
this news release.
*https://www.mndm.gov.on.ca/sites/default/files/recommendations_for_exploration_2020-2021.pdf
**Battle North Gold Bateman Gold Project,
current Feasibility Study includes resources of M&I 985,400 oz
Au @ 6.04gpt and Inf 272,200 oz Au @ 6.5gpt
**Source: Agnico Eagle Mines Limited Website,
Resource date December 31, 2019.
(https://s21.q4cdn.com/374334112/files/doc_downloads/agnico_downloads/RnR-Tables/2020/RRTable-2020-Web-Final.pdf)
***Ontario Geological Survey 2008. Ontario
airborne geophysical surveys, magnetic and electromagnetic data,
grid and profile data (ASCII and Geosoft formats) and vector data,
Whitefeather forest ara, GEOTEM 1000 survey, Ontario Geological
Survey, Geophysical Data Set 1058a.
OGS: Stone D. 1998. Precambrian geology, Trout
Lake area; Ontario Geological Survey, Map P.3383. scale 1:250
000
MNDM Interpretation from: Lewis, S.O. 2021. Deep
tapping seismic structure in the Red Lake district; in Ontario
Geological Survey, Resident Geologist Program, Recommendations for
Exploration 2020-2021, p.9-13.
Original Seismic Interpretation from:
Zeng, Fafu and Calvert, Andrew. 2011. Imaging
the upper part of the Red Lake greenstone belt, northwestern
Ontario, with 3-D traveltime tomography. Canadian Journal of Earth
Sciences, v.43. p.849-863. https://doi.org/10.1139/e06-027.
This news release contains references to other
projects, their structures and mineralization, there is no
certainty that Solstice’s projects will contain similar structures
or mineralization.
On Behalf of Solstice Gold
Corp.
David Adamson, PhDChairman
For further information please visit our website
at www.solsticegold.com or contact:
Marty Tunney,
PEngPresidentinfo@solsticegold.com
Forward Looking Statements
This news release contains certain
forward-looking statements (“FLS”) relating but not limited to the
Company’s expectations, intentions, plans and beliefs. FLS can
often be identified by forward-looking words such as “approximate
or (~)”, “emerging”, “goal”, “plan”, “intent”, “estimate”,
“expects”, “potential”, “scheduled”, “may” and “will” or similar
words suggesting future outcomes or other expectations, beliefs,
plans, objectives, assumptions, intentions or statements about
future events or performance. FLS in this news release also
include, but are not limited to, the extent and timing of described
programs and ground-work, such as rock sampling, drilling,
geophysics, mapping, till sampling and analysis. Geological
interpretations are FLS and are subject to change based on
additional data and/or further analysis. FLS in this news release
include comparison with certain geological features at adjacent and
regional projects. There can be no guarantee that continued
exploration at Solstice exploration projects, which are at an early
stage of exploration, will lead to the discovery of an economic
gold deposit. Factors that could cause actual results to differ
materially from any FLS include, but are not limited to, the future
impacts of the COVID 19 pandemic and government response to such
pandemic, the ability of the Company to continue exploration at its
project in lieu of the pandemic and the risk of future lack of
access to the project as a result thereof, delays in obtaining or
failures to obtain required governmental, environmental or other
project approvals, inability to locate source rocks, inflation,
changes in exchange rates, fluctuations in commodity prices, delays
in the development of projects, regulatory approvals and other
factors. FLS are subject to risks, uncertainties and other factors
that could cause actual results to differ materially from expected
results.
Potential shareholders and prospective investors
should be aware that these statements are subject to known and
unknown risks, uncertainties and other factors that could cause
actual results to differ materially from those suggested by the
FLS. Shareholders are cautioned not to place undue reliance on FLS.
By their nature FLS involve numerous assumptions, inherent risks
and uncertainties, both general and specific, that contribute to
the possibility that the predictions, forecasts, projections and
various future events will not occur. Solstice undertakes no
obligation to update publicly or otherwise revise any FLS whether
as a result of new information, future events or other such factors
which affect this information, except as required by law.
This news release contains information with
respect to adjacent or other mineral properties in respect of which
the Company has no interest or rights to explore or mine or
acquire. Readers are cautioned that mineral deposits on adjacent or
similar properties are not indicative of mineral deposits on the
Company’s properties, nor is there certainty that Solstice’s
projects will contain economic mineralization. This news release
mentions other companies that are unrelated to Solstice and this
does not imply any agreements, partnerships or rights with respect
to any of these companies or their properties other than where
explicitly defined. Past performance is no guarantee of future
performance and all investors are urged to consult their investment
professionals before making an investment decision.
Solstice Gold (TSXV:SGC)
Historical Stock Chart
From Mar 2024 to Apr 2024
Solstice Gold (TSXV:SGC)
Historical Stock Chart
From Apr 2023 to Apr 2024