CALGARY, AB,
"The Black Horse property last drilled in 1998 could provide the low cost gold production required to anchor North Peak's growth and ambitions," said
Black Horse Property Highlights:
- Historic resources – Historical inferred mineral resource estimates of 350,000 troy ounces of gold with a grade of 1.2 grams gold or 0.045 oz (using a base case cut off of 0.005 opt Au), plus 1,140 million oz of silver at 0.14 ounce per ton, was prepared for Minex in a technical report dated effective
November 18, 2016 byScott E. Wilson , C.P.G. (the "Technical Report"). A Qualified Person has not done sufficient work for the Company to classify these historical estimates as a current mineral resource or mineral reserve. The Company is not treating these historical estimates as current mineral resources or mineral reserves and has not verified the historical resource estimates. While the Technical Report was prepared according to the guidelines of the CSA's National Instrument 43-101, the reader is cautioned that the data used in the preparation of the historical resource estimates does not meet the current standards of exploration quality assurance and quality control protocols and significant additional drilling (including diamond drilling, some which will twin earlier holes), data verification (quality control), and a site visit would be required to ensure the quality of historic data meets current standards for use in a resource estimate. Further information in respect of this historical resource estimates is set forth below.* - Property description – The Black Horse property is 2,733 acres of federal lands administered by the BLM and is located within the
Snake Range ,Eastern White Pine County, Nevada . The property is alongU.S. Highway 50 and located 50 miles east of the town ofEly, Nevada and 11 miles Northwest ofBaker, Nevada , and is 100% owned by Minex. - Historic Metallurgical work – Historic but preliminary metallurgical work consisting of bottle roll cyanide tests on 12 oxide drill cutting composites and 4 surface sample composites returned an average recovery of 97% for gold and 73% for silver at minus 100 mesh in 48 hours.
- Black Horse geology – Approximately 65% of the gold mineralization occurs in hydrothermally altered and micro-veined quartzite inter-layered beds of mica schist in the
Pre-Cambrian McCoy Creek group. Most of the gold mineralization in the quartzite appears to be stratiform and varies from 20-100 feet in thickness. Gold grades range from below detection to 1.4 ounce per ton over ten-foot drill assay intervals (see below for further information). A major thrust structure is present- representing the conduit for gold fluids. The CambrianLincoln Peak limestone overlies thePrecambrian McCoy Creek group and is in the thrust fault contact with thePrecambrian McCoy Creek group. - Two distinct areas of development – The Black Horse property has 2 distinct areas to focus on, known as Area A and Area B. The Technical Report and its historic estimate of gold and silver resources refer only to data from Area A and is the oxide portion of that Area A.
Gold was originally produced from the Black Horse property around 1906 and the district saw intermittent historic small-scale mining between 1905 and 1998. Recent exploration activities by previous operators included mapping, sampling, geophysical surveys and drilling, culminating in the historical resource estimate referenced above. Gold mining began in the Black Horse district around 1905 and the largest orebodies mined were veins along faults and replacement deposits in limestone. Minex was the first company to undertake a comprehensive exploration campaign and gold grades from the 1998 drilling programs ranged from below detection to 1.4 ounce per ton over 10-foot drill hole assay intervals. Some of the better intersections on the property including 0.24 ounces per ton (ozt/) over 90 feet (hole 230), 0.25 oz/t over 30 feet (hole 182) and 0.28 oz/t over 30 feet (hole 89). A Qualified Person has not done sufficient work for the Company to corroborate these historical drill intersections.
The Company and Minex will work together towards the execution of definitive documentation in the respect of the Option outlined in the LOI. It is proposed that such definitive documentation will include an initial payment to Minex of
It is also proposed that after obtaining final material permits, the Company would acquire the remaining 50% interest in the Black Horse property. It is proposed that the production royalty would be
Investors are cautioned that there can be no assurance that a potential transaction in respect of the Option will be completed as proposed, or at all. Trading in the securities of the Company should be considered highly speculative.
Mr.
John Tumazos of
The Company will issue additional press releases related to execution of definitive documentation in respect of the Option and other material information as it becomes available. Finder's fees and fees to advisors may be payable in connection with any definitive transaction, and if payable, will be announced in subsequent press releases.
* In respect of the historical mineral resource estimates referenced above grade shells were interpreted and constructed and the estimates used inverse distance techniques in
About
The Company is a Canadian based gold exploration and development company that is listed on the
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS: This news release includes certain "forward-looking statements" under applicable Canadian securities legislation. Forward-looking statements include, but are not limited to, statements with respect to those that address the ability of the parties to come to definitive terms and negotiate and execution of definitive documentation in respect of the Option, the ability to receive applicable approvals from the
By their nature, forward-looking statements involve numerous assumptions, known and unknown risks and uncertainties, both general and specific, that contribute to the possibility that the predictions, estimates, forecasts, projections and other forward-looking statements will not occur. These assumptions, risks and uncertainties include, among other things, the state of the economy in general and capital markets in particular, accuracy of assay results, geological interpretations from drilling results, timing and amount of capital expenditures; performance of available laboratory and other related services, future operating costs, and the historical basis for current estimates of potential quantities and grades of target zones, as well as those risk factors discussed or referred to in the Company's Management's Discussion and Analysis for the year ended
The forward-looking statements contained in this press release are made as of the date of this press release. Except as required by law, the Company disclaims any intention and assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Additionally, the Company undertakes no obligation to comment on the expectations of, or statements made by, third parties in respect of the matters discussed above.
CAUTIONARY NOTE REGARDING MINERAL RESOURCES: Mineral resources are not mineral reserves and do not demonstrate economic viability. There is no certainty that all or any part of the mineral resource will be converted to mineral reserves.
CAUTIONARY NOTE TO U.S. INVESTORS CONCERNING HISTORICAL RESOURCE ESTIMATE: This news release has been prepared in accordance with the requirements of the securities laws in effect in
Neither the
SOURCE
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