VANCOUVER, BC, Sept. 3,
2024 /CNW/ - DFR Gold Inc. (TSXV: DFR)
("DFR" or the "Company") is engaging further
exploration work at Cascades and has entered into
agreements with Spirit Resources SARL ("Spirit") and
Brian Kiernan ("Kiernan"),
holding respectively 39.9% and 37.6% of the Company's issued and
outstanding share capital, pursuant to which Spirit and Kiernan
shall provide in aggregate US$1,000,000 financing (the "Financing")
to the Company for general working capital purposes and exploration
work at the Cascades Gold Project ("Cascades").
Exploration – Cascades
The Company intends to resume field work with the narrowed focus
of mineral resource definition at the Daramandougou deposit and one
or more of the newly discovered deposits in the Wuo Land 2 licence
area, starting with the Sina Yar target which is approximately 4km
east of Daramandougou.
Cascades has a mineral resource, as calculated in accordance
with National Instrument 43-101 - Standards of Disclosure for
Mineral Projects, comprising 5.41 million tonnes of
indicated resources at an average grade of 1.52g/t Au for a total
264,000 ounces of gold and 6.93 million tonnes of inferred
resources at an average grade 1.67g/t Au for a total of 371,000
ounces of gold. Please see the Company's technical report titled
"Amended and Re-stated Technical Report on the Labola Project
Burkina Faso" dated April 2, 2022,
with an effective date of April 20,
2022 for further information regarding Cascades. This report
can be located at www.dfrgold.com.
Historical drilling on the Western Zone at Daramandougou has
been targeted exclusively at delineating the broad NNE-SSW
mineralisation shear envelope. However, before the onset of heavy
rains in June the focus of field work at Cascades had shifted to
the mapping of a swarm of thin ENE-WSW trending high-grade
auriferous quartz-carbonate which cross-cut the shear
envelope.
A mapping programme started in Quarter 2 continued until the
onset of heavy rains and has already confirmed that the vein swarm
array extends over a strike length of at least 300 metres within
the known Western Zone shear envelope. The current work is
aimed at separately modelling the cross-cutting higher-grade vein
swarm in three dimensions for the first time.
The Company is optimistic about the potential for the
remodelling to define a significantly higher-grade and relatively
easily accessible mineral resource at the Western zone.
An Induced Polarisation geophysics survey ("IP") over the
currently defined Western Zone envelop is scheduled for as soon as
the weather permits during the early days of September 2024.
If the initial IP is successful in discriminating the higher-grade
mineralisation within the envelope, further IP will be done ahead
of further resource definition drilling.
Financing
The Financing consists of term loans (collectively, the
"Loan") to the Company from Spirit and Kiernan (the
"Lenders") on the following terms:
- Spirit shall provide a term loan amounting to US$600,000;
- Kiernan shall provide a term loan amounting to US$400,000
- The Loan is available in multiple drawdowns of multiples of
US$50,000 from each of Spirit and
Kiernan and shall be used for general working capital purposes and
exploration work;
- The Loan is unsecured and bears interest at the rate of 8% per
annum;
- The Loan is repayable in full on or before 31 July 2025 (the "Repayment Date");
and
- The Company shall repay the Loan earlier if it completes a
financing equivalent to US$2,800,000
or more prior to the Repayment Date.
Upon completion of the drawdowns of the Financing and prior to
any repayment, the cumulative amount of debt owing by the Company
to each Lender will be US$1,150,000,
or US$2,300,000 in aggregate with
maturity dates ranging from January 31,
2025 to July 31, 2025.
This Financing constitutes a related party transaction as
defined under Multilateral Instrument 61-101 – Protection of
Minority Security Holders in Special Transactions ("MI
61-101"). The Financing is exempt from the formal valuation
requirements of Section 5.4 of MI 61-101 pursuant to Subsection
5.5(b) of MI 61-101, and exempt from the minority shareholder
approval requirements of Section 5.6 of MI 61-101 pursuant to
Subsection 5.7(1)(f) of MI 61-101.
Notes to Editors:
Approval of disclosure of technical
information
Mr. Kieran Harrington PGeo EurGeol, Vice President Exploration
of DFR Gold Inc. and a Qualified Person as defined under Canadian
National Instrument 43 101 – Standards of Disclosure for Mineral
Projects ("NI 43 101"), has reviewed and approved the technical
information contained in this report.
About DFR Gold
DFR Gold is a TSX Venture Exchange listed exploration and mine
development company focused on gold in West Africa. DFR Gold holds interests in a
portfolio of West African gold exploration projects including an
80% interest (subject to spending US$18,000,000 by 30
September 2026) in the highly prospective Cascades gold
project ("Cascades") in Burkina
Faso. Cascades has a Mineral Resource prepared in accordance
with NI 43-101 comprising 5.41 million tonnes of indicated
resources at an average grade of 1.52g/t Au for a total 264,000
ounces of gold and 6.93 million tonnes of inferred resources at an
average grade 1.67g/t Au for a total of 371,000 ounces of gold.
Please see the Company's technical report titled "Amended and
Re-stated Technical Report on the Labola Project Burkina Faso"
dated April 2, 2022, with an
effective date of April 20, 2022 for
further information regarding Cascades. This report can be located
at www.dfrgold.com.
DFR Gold holds a controlling interest in Gurara Holdings Limited
which holds mineral licenses (the "Gurara Project") in Nigeria through its Nigerian subsidiaries. The
Gurara Project is a prospective frontier stage gold project in a
geologically attractive but underexplored area of Nigeria, comprising four licences in two
project areas (Dagma and Paimasa) in Western Nigeria. The Gurara Project lies
within the gold-bearing ("Schist Belt") terrain of the
Benin-Nigeria Shield where historically very little systematic
exploration has been undertaken, and which has broad similarities
to the Birimian of the Man Shield of West
Africa. At Dagma a quartz vein swarm has been identified and
a bulk sample of vein quartz gave an average assay of 22.2 gramme
per tonne gold.
In Madagascar, DFR Gold has an
advanced high grade hard rock zircon exploration prospect located
in the west of the country, approximately 220km east of the port of
Maintirano and close to a state road (the "Beravina Project"). The
Company filed a NI 43-101 compliant technical report for the
Beravina Project on January 29, 2019,
reporting an Inferred Mineral Resource Estimate of 1.5 million
tonnes grading 22.7% Zircon (ZrSiO4) (equivalent to 15.3% ZrO2).
This report can be located at www.dfrgold.com.
Website: www.dfrgold.com
The Company's public documents may be accessed at
www.sedarplus.ca
Neither the TSX-V 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.
Forward-Looking Statements:
This release contains certain "forward-looking information"
within the meaning of applicable Canadian securities legislation.
All statements other than statements of historical fact in this
release that address activities, events or developments that DFR
Gold expects or anticipates will or may occur in the future are
forward-looking statements or information. Forward-looking
statements in this news release include statements regarding
US$ 2,800,000 financing, the
exploration work at Cascades, obtaining financing and investing
US$18,000,000 on the Cascades project
prior to 30 September 2026 to retain
the Company's 80% interest in the Cascades project. Often, but not
always, forward-looking information can be identified by the use of
words such as "aim", "aspire", "strive", "will", "expect",
"intend", "plan", "believe" or similar expressions as they relate
to DFR Gold. Forward looking information is subject to a variety of
risks and uncertainties which could cause actual events or results
to materially differ from those reflected in the forward-looking
information.
There are a number of important factors that could cause DFR
Gold's actual results to differ materially from those indicated or
implied by forward-looking statements and information. Such factors
include, among others: the ability to obtain requisite regulatory
approvals; the ability to renew mineral licenses and secure new
exploration licenses the ability to finance drilling campaigns and
exercise its options to acquire exploration permits; exploration
works delivering the expected results; the commodity prices; the
gold exploration and mining industry in general; the potential
impact of the announcement on relationships; including with
regulatory bodies, employees; suppliers, customers and competitors;
changes in general economic, business and political conditions,
including changes in the financial markets; changes in applicable
laws; and compliance with extensive government regulation. Should
one or more of these risks, uncertainties or other factors
materialize, or should assumptions underlying the forward-looking
information or statement prove incorrect, actual results may vary
materially from those described herein as intended, planned,
anticipated, believed, estimated or expected.
DFR Gold cautions that the foregoing list of material factors is
not exhaustive. When relying on DFR Gold's forward-looking
statements and information to make decisions, shareholders should
carefully consider the foregoing factors and other uncertainties
and potential events. DFR Gold has assumed that the material
factors referred to in the previous paragraph will not cause such
forward looking statements and information to differ materially
from actual results or events. However, the list of these factors
is not exhaustive and is subject to change and there can be no
assurance that such assumptions will reflect the actual outcome of
such items or factors. The forward-looking information contained in
this release represents the expectations of DFR Gold as of the date
of this release and, accordingly, is subject to change after such
date. Readers should not place undue importance on forward looking
information and should not rely upon this information as of any
other date. While DFR Gold may elect to, it does not undertake to
update this information at any particular time except as required
in accordance with applicable laws.
SOURCE DFR Gold Inc. (formerly Diamond Fields Resources
Inc.)