OTTAWA, ON, June 29, 2020 /CNW/ - UrbanGold Minerals
Inc. ("UrbanGold" or the "Company") (TSXV: UGM) and
Argonaut Gold Inc. ("Argonaut") (TSX: AR) are pleased to
report they have entered into a formal joint venture (the "Joint
Venture") for the Bullseye property (the "Property") located
approximately 17 km south of the former producing Troilus
Gold-Copper mine and 100 kms north of Chibougamau, Quebec.
On September 13th,
2019, UrbanGold had announced the signing of an option agreement
(the "Agreement") to earn a 50% interest in Argonaut's claims, by
funding a $500,000 exploration
program and issuing 750,000 of its common shares to Argonaut.
UrbanGold has now completed its earn-in and as part of the
Agreement, Argonaut and UrbanGold are combining their respective
claims in the immediate area into a single 8,642-hectare property
to form the Bullseye property. Each party will hold a 50% stake in
the Property as indicated on the adjoined map and UrbanGold is to
remain the operator for the time being.
Two drill programs totaling 2,373 metres were completed in 2019
on the Property which delineated gold mineralization over
significant widths on the Cressida block (See February 4th, 2020 news release) which
is on strike and in the same geology as the past producing Troilus
mine. The Joint Venture now establishes an exploration committee
which will review the next steps for the Property, including a
second phase of drilling on the Cressida zone.
Mathieu Stephens, UrbanGold
President and CEO commented: "We are pleased that UrbanGold has
been able to enter into this Joint Venture ahead of schedule and at
a time when markets seem to point at a bullish gold sector. We look
forward to continue work with Argonaut in the area where we have
encountered significant gold mineralization over the next few
months. Given its potential for gold mineralization, the Troilus
area continues to be our main focus."
Brian Arkell, Vice-President of
Exploration for Argonaut Gold commented: "As part of our
diversification strategy, we are pleased to have UrbanGold partner
with us as we renew our exploration in Quebec. We recognized the Troilus area as
having excellent exploration potential and the team has identified
several targets near existing infrastructure which we look to
forward to further investigating."
The Property is located in the Troilus area, near the past
producing open-pit Troilus mine (2M
Oz of gold produced (Source: Troilus Gold Website)). Key
infrastructure remains at the site, including a power line, a 50MW
substation, camp, water treatment facility and permitted tailings
facilities. It is to be noted that UrbanGold also holds several
blocks of claims in the area which are 100% owned by the Company
and are not part of the Agreement. Work is currently underway on
these claims.
Qualified Person
This news release has been prepared
by Mathieu Stephens, P.Geo.,
President and CEO for UrbanGold, the Qualified Person, as defined
by National Instrument 43-101.
About UrbanGold
UrbanGold Minerals Inc. is a precious
metals exploration company with its activities focused in key gold
prospective areas of Quebec. The
Company specializes in project generation supported by substantial
exploration expertise. The Company's common shares trade on the TSX
Venture Exchange under the symbol "UGM".
About Argonaut Gold
Argonaut Gold is a Canadian gold
company engaged in exploration, mine development and
production. Its primary assets are the El Castillo mine and San Agustin mine, which together form the El
Castillo Complex in Durango,
Mexico and the La Colorada
mine in Sonora, Mexico.
Advanced exploration projects include the Cerro del Gallo project
in Guanajuato, Mexico and the
Magino project in Ontario,
Canada. The Company continues to hold the San Antonio advanced exploration project in
Baja California Sur, Mexico and
several other exploration stage projects, all of which are located
in North America.
Forward Looking Information
This news release may
contain certain forward-looking information and statements,
including without limitation the planned exploration program on the
Property. All statements included herein, other than statements of
historical fact, are forward-looking information and such
information involves various risks and uncertainties. There
can be no assurance that such information will prove to be
accurate, and actual results and future events could differ
materially from those anticipated in such information. A
description of assumptions used to develop such forward-looking
information and a description of risk factors that may cause actual
results to differ materially from forward-looking information can
be found in UrbanGold's and Argonaut's disclosure documents on the
SEDAR website at www.sedar.com. UrbanGold does not undertake to
update any forward-looking information except in accordance with
applicable securities laws. Argonaut undertakes no obligation
to update forward-looking statements if circumstances or
management's estimates or opinions should change except as required
by applicable securities laws. The reader is cautioned not to
place undue reliance on forward-looking statements. Statements
concerning mineral reserve and resource estimates may also be
deemed to constitute forward-looking statements to the extent they
involve estimates of the mineralization that will be encountered if
the property is developed. Comparative market information is
as of a date prior to the date of this document.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
For further information
Mathieu Stephens, P.Geo
President and Chief Executive Officer
mstephens@urbangoldminerals.com
Jens Hansen, P.Eng
Chairman of the Board
jhansen@urbangoldminerals.com
Phone (343) 883-4334
www.urbangoldminerals.com
Argonaut Gold Inc.
Dan
Symons
Vice President, Investor Relations
Phone: 416-915-3107
Email: dan.symons@argonautgold.com
SOURCE Argonaut Gold Inc.
