MONTREAL, Oct. 5, 2020 /CNW/ - Tarku Resources
Ltd (TSXV: TKU) (the "Company" or "Tarku") is pleased to
announce that it has entered into an agreement with arm's length
parties (the "Vendors") under which Tarku intends to acquire up to
75% in 1250 hectares of mineral claims in the Tombstone area mining District, Arizona. The agreement is subject to
completion of due diligence, the finalization of a definitive
agreement governing the acquisition and receipt of all necessary
regulatory approvals, including the approval of the TSX Venture
Exchange (the "Exchange").
Acquisition Highlights
- Acquisition of 1,250 + hectares exploration land package in a
historic mining jurisdiction prospective for Copper, Gold and
Silver
- Tarku will become one of the most significant mineral claim
owners in the historic Tombstone
mining district
- The mineral claims are a combination of BLM, patented and
unpatented claims
- Assets located in vicinity of Tombstone and its numerous historic high-grade
silver mines
- Past producing assets focused solely on high grade veins
- Under-explored assets mainly focused on shallow drilling of
high-grade silver veins.
- More recent interpretation suggests large porphyry Cu-Au
system
- Numerous exploration targets identified
Julien Davy, President and CEO of
Tarku, stated: " Tombstone
has an incredible history of mining. The area has produced
approximately 32 million ounces of silver at an average grade of
almost 26 oz/t as well as 260,000 ounces of gold at 6.5g/t and
in lesser amounts other base metals as lead, zinc, copper, zinc and
manganese. Previously thought to be an epithermal silver-lead-zinc
district of limited size and potential, we now understand that
mineralization is associated with volcanism and related caldera
formation, and alteration assemblages which are characteristic of
porphyry copper deposits and its surrounding systems. It's not
surprising to find world class Cu-Au porphyry producing mines to
the south within the same geological trend."
"Tarku's Project consists of the amalgamation of an
exceptional land package in the Tombstone District. We believe the decades of
silver production mainly from 0 to 200m deep due to their technical capacity of
pumping water in the 30's, is the tip of the iceberg of a bigger
Cu-Au porphyry system. The area has never been explored in modern
times with a "big picture" view and utilizing a thorough systematic
approach.
History of the Tombstone
Area
The Project is located in Cochise County, Arizona in the famous
Tombstone Mining district, one of the earliest silver mining areas
in western United States that
start producing numerous silver mines in 1877. Despite the
attractive quantity of silver found in the district, the low metal
prices of the 1915's led past producers to focus mainly on
high-grade veins. During the 38 year-period from 1877 to 1915, when
most of the ore was produced at Tombstone, declining silver prices, financial
panic, and the removal of the United
States currency from the silver standard, had immeasurably
more effect on the mines than the Earp/Clanton feud, bandits, and
their technical inability to deal with underground waters.
Some sporadic production in the area was recorded at different
periods also stimulated by a higher gold price. During World War
II, there was some study of the manganese deposits in the district
in relation to the war effort. Exploration work in late 1950 showed
values in lead and zinc and in 1965, limited drilling was completed
probing for porphyry-copper-type model recovering alteration zones
in the vicinity of breccia pipes and extensive but low-grade
mineralization.
Between 1980 and 1985, Tombstone Exploration, Inc. operated an
open pit mine on the Contention vein and produced up to 3,000 tons
per day of ore averaging in the range of 1.25 oz/t Ag and 0.6 g/t
Au. No exploration drilling was ever done, and no ore reserves of
significance were measured ahead of mining.
Tarku's Tombstone Project
The Project encompasses a total of about 1,250 hectares
(13 km2) adjacent to the South of the Tombstone city, Cochise county, Arizona and consists of a combination of BLM
claims as well as patented and unpatented claims (see
figure 1).
The area is characterized by mountain building episodes and
sedimentation (mountain erosion) intruded by numerous granites.
Older rocks are unconformably overlying the Tombstones hills by
tick sequences of sediments which are excellent host mineralization
as they chemical and resistant characteristics make them break
easily under tectonics stress and provide pathways for veins and
mineralization. The principal production from the Tombstone mining district has been from high
grade veins associated with those fractures.
Although Tombstone has
primarily been a silver camp, substantial gold and lead, and
subordinate copper, zinc, and manganese have also been produced.
The silver to gold ratio for documented production between 1877 and
1937 is 126 to 1 and production has come mainly from mineralized
vein fractures cutting folded sediments. Ninety-five percent or
more of the production is from the surface to 200 m and is
primarily from oxide ore minerals.
More recent publications and data compilation concluded that the
volcanic geology and structure in the Tombstone area is related to a district-scale
Laramide caldera. Mineralization in the district is also related to
the caldera and attendant hydrothermal fluid migration. These
districts are typically zoned from silver-rich peripheries to
higher base-metal and gold contents near to the intrusions.
Copper-gold mineralization occurs in intrusion-hosted stockworks or
skams.
In the early 70's, the American Smelting & Refining Company
(ASARCO) obtained a lease on the Horne claims around the Robbers'
Roost breccia pipe. They drilled three holes to a maximum depth of
1700m (5,000 ft) on a porphyry copper
alteration zone in the vicinity of the breccia pipes. These holes
intersected extensive but low-grade mineralization, grading
vertically downward from a lead-zinc phase of mineralization into
porphyry copper type mineralization, including disseminated pyrite,
chalcopyrite, and molybdenite, as well as secondary K-feldspar and
purple anhydrite. Poor copper prices at the time and since have
discouraged further exploration for copper at this depth.
These mining claims are part of the agreement and such data
strongly encourage Tarku's management to believe the Tombstone Area has the potential to host a
significant porphyry copper system with associated gold and
silver.
Tarku cautions that comparisons of the mineralization in a
porphyry copper system may not be indicative of the mineralization
that may be identified on the Company's project in the Tombstone area and is used as a conceptual
exploration model only.
Summary of the Transaction
Tarku has the right but not the obligation to earn up to a 75%
interest over 3 years in the Vendors' mineral claim by funding
project expenditures of up to US$3
million as follows:
- Tarku will acquire 25% of the Property after spending
US$ 1,000,000 in exploration expenses within the first year of
earn-in period
- Tarku will acquire an additional 26% (total of 51%) of the
Property after spending an additional US$ 1,000,000 in
exploration expenses and the production of a 43-101 report on the
Property within the first 2 years of earn-in period
- Tarku will acquire an additional 24% (total of 75%) of the
Property after spending an additional US$ 1,000,000 for a
cumulative US$ 3,000,000 in exploration expenses within the
first 3 years of earn-in period.
At the end of this Earn-in Period, the Vendors and Tarku will
become JV partners on the Property, 75% Tarku, 25% the Vendors.
Should the Vendors elect to dispose of their remaining interest,
Tarku will keep a Right of First Refusal.
The Transaction is an arm's length transaction. Pursuant to the
terms of the agreement, it is anticipated that the definitive
agreement (the "Definitive Agreement") in respect of the
Transaction will be signed on or before October 15, 2020, at which time the Company will
issue a comprehensive news release in respect of the
Transaction.
Upon completion of the Definitive Agreement, Tarku will issue
3,000,000 common shares to the Vendors in consideration for the
Projects. The shares will be subject to resale restrictions of 4
equal period of 6 month each and a RoFR will allow Tarku the
opportunity to place these shares with existent shareholders at
prevailing market price. At each anniversary date over the 3 years,
Tarku will pay US$ 175,000 to the vendors of which a minimum
of US$ 50,000 will be a cash payment and US$ 125,000 will
be paid either in shares or in cash at the Companies discretion. In
addition, Tarku will have to make several payments of a total of
US$ 725,000 spread over the next 2 years to purchase specific
options the Vendor has on certain patented and unpatented
claims.
Completion of the Transaction is subject to a number of
conditions, including but not limited to the following key
conditions:
- Execution of the Definitive Agreement;
- Completion of mutually satisfactory due diligence; and
- Receipt of all required regulatory, including the approval TSX
Venture Exchange.
Julien Davy, P.Geo., M.Sc, MBA,
President and Chief Executive Officer of Tarku, is the qualified
person under National Instrument 43-101 Standards of Disclosure for
Mineral Projects who prepared, supervised and approved the
technical information in this news release.
About Tarku Resources Ltd. (TSX.V : TKU)
Tarku is an exploration company focused on making new
discoveries. Tarku owns 100% on the "Three A's" exploration
projects, (Apollo, Admiral and Atlas Projects), in the Matagami greenstone belt, which has been
interpreted by management as the eastern extension of the Detour
Belt in Quebec, and which has seen
recent exploration successes by Midland Exploration Inc.,
Wallbridge Mining Company Ltd., Probe Metals Inc.
Project generation is the foundation of creation wealth in the
mining business. Tarku is interested in generating sustainable
projects by conducting exploration in areas with strong geologic
potential and high levels of social acceptability within Québec,
and projects that can be explored and developed quickly with the
support of the community. Tarku has 28,074,036 outstanding shares,
of which approximately 75% are owned by 20 insiders and major
shareholders. Management is also actively reviewing several
opportunities and projects to build up the Company portfolio and
generate shareholder value.
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 press release may contain forward-looking statements
that are subject to known and unknown risks and uncertainties that
could cause actual results and activities to vary materially from
targeted results and planning. Such risks and uncertainties include
those described in Tarku's periodic reports including the annual
report or in the filings made by Tarku from time to time with
securities regulatory authorities.
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SOURCE Tarku Resources Ltd.
