- Acquisition of 5,960 hectares in the Red Lake Gold
Camp
- Moose and Caribou Creek Blocks located in favourable rock
types similar to Great Bear's Dixie Project gold
mineralization
- Under-explored for gold mineralization with previous focus
on base metals
VANCOUVER, BC, Oct. 21, 2020 /CNW/ - Trillium Gold Mines Inc.
(TSXV: TGM) (OTCQX: TGLDF) ("Trillium" or the "Company") is pleased
to report that it has entered into an agreement to acquire 293
units in 90 claims covering a total of 5,960 hectares (the
"Property") east of Great Bear Resources' Dixie property, underlain
by the Confederation Greenstone Belt of metavolcanic and
metasedimentary rocks.
Bill Paterson, Vice President of
Exploration comments "Most of the property package which we have
entered into an agreement to acquire in The Confederation
Greenstone Belt was explored mainly for base metals in the past.
Many operators either ignored numerous occurrences of gold
mineralization or never assayed for gold. This acquisition presents
an opportunity to explore a large package of rocks with high
potential for hosting gold in the Birch-Uchi greenstone belt. The
structural corridor, which is associated with Great Bear's Dixie
Project, appears to be continuous along this large land package
with similar stratigraphy and fault structures as those on the
Moose and Caribou Creek blocks. We see similar characteristics on
the Copperlode West claims which we have also acquired."
Russell Starr, CEO of Trillium
Gold comments "The land packages being acquired are prospective
exploration targets given they lie along and near the structural
corridor that includes the Great Bear Dixie Lake Project. The
property acquisition fits our strategy of investing in
opportunities that have high gold discovery potential."
Trillium Gold will pay C$180,000
and issue 200,000 Trillium gold shares and 200,000 purchase
warrants exercisable for a period of 2 years and having an exercise
price of C$5.00 under the acquisition
agreement. Completion of the acquisition is subject to the approval
of the TSX Venture Exchange.
There is a high probability that the Great Bear Resources' Dixie
Project lies along the Confederation-Balmer contact. The
high-strain structural zone hosting the LP Fault mineralization, is
traceable from the Dixie Property eastwards based on regional
aeromagnetic data, through the favourable Confederation rocks of
the Birch-Uchi greenstone belt. This relationship is suggested to
exist for many of the fault splays cutting the Confederation
Greenstone Belt.
The LP Fault target on Great Bear Resources Dixie Project is
reported to contain high-grade gold mineralization controlled by
structural and geological contacts, with lower grade disseminated
gold surrounding and on the flanks of the high-grade intervals. The
dominant gold-hosting stratigraphy consists of felsic volcanic and
sedimentary rock units. Trillium Gold believes that the same
stratigraphy within the Dixie LP Fault target is also present on
the Moose and Caribou Creek blocks as well as the Copperlode West
claim block, hence the Company's interest in these newly acquired,
highly prospective claims.
The Moose Creek and Caribou
Creek claim blocks are contiguous to a former Noranda property
containing the Dixie 18 deposit with a historic, non-NI 43-101
compliant resource reported by Noranda as 110,000 tons (99,820
tonnes) grading 0.5% Cu and 12.5% Zn to a depth of 150m. These properties also appear to lie along
the "Mine Trend" that hosts the Cochenour and Red Lake Mines operated by
Evolution Mining. There is excellent road access to the east and
west ends of the claim blocks.
Historic drilling on the Moose
Creek claims by Inco returned 0.33% Cu and 1.17% Zn over 2
metres in hole BH 79637. There are no gold analyses reported. In
addition, Selco drilled 0.96 % Cu and 3.22% Zn over 1.2 feet as
well as 0.69 % Cu and 1.11% Zn over 2.2 feet in hole 150-8-1. These
are the only holes drilled on the Moose
Creek claims.
On the Caribou Creek claims, 6 historical holes were drilled by
Lightval Mines and Selco. The four holes by Lightval Mines comprise
a total of 633.3m drilled, yet only
15 samples were collected. Of these samples, two showed anomalous
gold values at less than 200 ppb Au.
The Moose and Caribou Creek claim blocks are northwest of the
Otter Property where Portofino Resources recently sampled
gold-bearing quartz veins in close proximity to sulphide
mineralization on surface.
The Copperlode West block of claims is contiguous to the east
with the Joy Zone, Creek Zone, South Zone, the Caravelle Zone and
the Diamond Willow Zone.
The Joy Zone is a copper-dominated volcanogenic massive
sulphide. It was tested by 8 historical drill holes. Results
included 4.01% Cu over a 3.35 metre core length and 3.21% Cu over a
4.91 metre core length.
The Diamond Willow Zone is a copper-zinc massive sulphide zone.
It was intersected by six historical drill holes, with results
including 2.26% Cu and 1.81% Zn over a 4.20 metres and 1.24% Cu and
0.98% Zn over a 5.35 metres.
The Caravelle Zone was drill-tested in the 1960s. The best
results included 0.22% Cu and 4.44% Zn over 1.07 metres and 0.92%
Cu and 1.01% Zn over 1.22 metres in the same drill hole.
The Creek Zone was drilled by Noranda Exploration in
1994, intersecting 1 metre of 1.37% Cu, 0.16% Zn, 5.8 g/t Ag and
0.98 g/t Au. This included 0.5 metre of 1.8 g/t Au.
To the east of the Copperlode West blocks is the Copperlode "E"
Zone, with a historic non-NI 43-101 compliant resource reported by
Noranda as 110,000 tonnes at 1.02% Cu, 8.28% Zn and 0.39% Ag.
Geology
The Confederation assemblage dominates both the Red Lake and Birch-Uchi greenstone belts. The
rocks comprise younger Archean shallow marine to subaerial arc
volcanic rocks on an older Archean continental margin with later
tholeiitic basalts. The assemblage is characterized by extensive
calc-alkaline shallow-marine to subaerial intermediate to mafic
volcanism. Felsic to intermediate volcanic rocks include various
tuffaceous facies, massive to pillowed andesites, with minor fine
clastic sediments.
The Confederation assemblage sits unconformably atop the Balmer
rocks (the major host of Red
Lake's gold mineralization) with the angular unconformity
usually covered by the late-Confederation clastic Huston
Assemblage. The vast majority of the Red
Lake mineralization is located within a short distance of
this unconformity.
The technical information presented in this news release has
been reviewed and approved by William Paterson QP, PGeo, VP of
Exploration of Trillium Gold Mines., as defined by NI 43-101.
Trillium Gold also reports that it has granted incentive stock
options, exercisable to purchase up to an aggregate of 1,125,000
shares of the Company, to officers and consultants of the Company
pursuant to the Company's stock option plan (the
"Plan"). The options are all exercisable at the price
of $1.70 per share until October 20, 2025, subject to any earlier
termination in accordance with the Plan. The grant of options is
subject to regulatory approval.
Trillium Gold also announces that further to its news release of
July 3, 2020, the Company has settled
a total of $458,100 of debt (the
"Debt") relating to consulting services provided by two
arms-length creditors (the "Shares for Debt Settlement").
Pursuant to the Shares for Debt Settlement, the Company issued to
the Creditors a total of 497,934 common shares in the capital of
the Company (the "Shares") at a deemed price of $0.92 per Share. The Shares for Debt Settlement
was approved by the TSX Venture Exchange on October 8, 2020.
The Company negotiated the Shares for Debt Settlement in light
of the Company's current working capital position and in order to
preserve capital to fund the continued development of the Company's
mineral projects.
All securities issued in connection with the Shares for Debt
Settlement are subject to a statutory hold period expiring on
February 9, 2021 in accordance with
applicable securities legislation.
On behalf of the Board of Directors,
Trillium Gold Mines Inc.
"Russell Starr"
Russell Starr
President, CEO and Director
About Trillium Gold Mines Inc.
Trillium Gold Mines Inc. is a British
Columbia based company engaged in the business of
acquisition, exploration and development of mineral properties
located in the highly prospective Red Lake Mining District of
Northern Ontario.
Disclosure and Caution
Completion of the transaction is subject to a number of
conditions, including TSX Venture Exchange acceptance. The
transaction cannot close until the required conditions are
satisfied and required approvals are obtained. There can be no
assurance that the transaction will be completed as proposed or at
all. Trading in the securities of the Company should be considered
highly speculative. The TSX Venture Exchange has not reviewed or
approved the terms to the Transaction.
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.
This news release contains forward-looking information, which
involves known and unknown risks, uncertainties and other factors
that may cause actual events to differ materially from current
expectation. Readers are cautioned not to place undue reliance on
these forward-looking statements, which speak only as of the date
of this press release. The Company disclaims any intention or
obligation, except to the extent required by law, to update or
revise any forward-looking statements, whether as a result of new
information, future events or otherwise.
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SOURCE Trillium Gold Mines Inc.