- Gold Mineralized Tombstone Intrusive with Inferred Resource
of 1,950,000 oz Gold
- Significant Exploration Potential on Approximately 22,000
Contiguous Acres
- Immediate Drill Ready with Class 3 Quartz Mining Land Use
Permit
- Established Mining Infrastructure within the Historic
Tintina Gold Belt
VANCOUVER, BC, April 6, 2021 /CNW/ -- St. James Gold Corp.
(TSXV: LORD) (OTCQB: LRDJF) (FSE: BVU3), the "Company" or
"St. James Gold" is pleased to
announce that it has entered into an Option and Joint Venture
Agreement (the "Option and JV Agreement") with Florin Resources
Inc. ("Florin"), effective April 1,
2021 to acquire up to a 100% interest in the Florin Gold
Project, covering approximately 22,000 contiguous acres (the
"Property") in the historic Tintina Gold Belt in the Yukon Territory, Canada.
The Florin Gold Project contains a 2012 Inferred Resource of
127,236,000 tonnes grading 0.48 g/t gold, approximately 1.95
million ounces of contained gold, with a cut-off grade of 0.3 g/t
gold. This resource is contained in a technical report
prepared for Florin in accordance with National Instrument
43-101and authored by Brian Cole
(2012) (the "Technical Report").
The project lies within a belt where several major
intrusive related gold deposits have been delineated and produced
over the past few decades, including Kinross' Fort Knox (3.37m. oz reserve in 282 million t. @0.37 g/t,
plus past production of 7.5 m.oz:
J.Sims 2017 NI 43-101 Report), and Victoria
Gold's Eagle deposits, (3.26
m.oz P&P reserve in 155 million t.@0.65g/t gold, plus
M&I resource of 3.6 m.oz in 180mt
@0.63g/t gold:Victoria Gold website).
The Property consists of contiguous mineral claims straddling
the Mayo and Dawson Mining
District boundaries and is located approximately 55 km northwest of
the town of Mayo and 130 km
east-southeast of Dawson City. The Property is accessible via
a network of roads from the Klondike Highway and is close to power
infrastructure via the Mayo Hydro Dam and Victoria Gold's operations.
The Property comprises an extensive gold-mineralized Tombstone
intrusive rock complex. While past exploration has
established the potential for extensive tonnages of material and
remains open in all directions, both laterally and extending to
depth from surface, the Property has seen very limited exploration
since 2011. In 2016, the Property underwent several additional
soil geochemical surveys blanketing a large portion of the Property
on trend over a strike length of 5 km. These activities were
successful in further expanding and defining drill target gold
anomalies, resulting in the consolidation and expansion to
approximately 22,000 acres.
The Property represents a dome rising 500 metres above the
surrounding valley elevation of 1,000 meters. Geological,
geophysical and geochemical data together with 16,572 meters of
drilling, predominantly in 2010 and 2011, suggest that much of the
Property is prospective for gold mineralization. The 1.95
million oz Au inferred resource estimate is located within a large
prospective intrusive host rock that through geophysical
interpretation may potentially exceed 5 cubic kilometers.
This volume of prospective rock measuring 3.5 by 2 kilometers in
surface extent and extending to at least 500 metres in depth has
been projected from the geological, geophysical and geochemical
data framework. A large airborne magnetic signature under the
claims also suggests a larger, intrusive body at depth, possibly
extending to over 1,000 meters, thus suggesting a gold potential
comparable in geological setting to the Tombstone porphyry suite
deposits found elsewhere in the district.
An updated technical report will be available to St. James on
completion of an update by Ron
Simpson of GeoSim Services Inc.
As stated by George
Drazenovic, CEO of St. James Gold Corp., "We are
delighted to enter into an agreement for what we believe to be one
of the largest undeveloped pure gold resource projects in the
Yukon. We will begin the review and compilation of all
available data immediately and look to design an active exploration
program. The inferred resource remains open in all directions
and at depth, and there are several large untested zones in the
vicinity. While the inferred resource represents a modest
portion of the entire land package, the existing data suggests that
gold mineralization remains open in virtually all
directions."
Reinterpretation is under way of available geological,
geochemical and geophysical data preparatory to an early drill
program. No additional drilling has been conducted since the
2012 report.
The Florin Gold Project is Drill Ready
Florin, as operator for the Property, holds a Class 3 Quartz
Mining Land Use Permit, allowing for an immediate drilling program
this summer. A joint technical committee comprised of
representatives from Florin and St. James
Gold will be formed to put in place a work exploration
roadmap. Since the Property hosts an intrusion-related gold
deposit, deeper drilling is warranted as higher-grade intercepts
from drilling lie at hole depths of up to 500 m. The current depth cutoff for the
inferred resource was limited at 300
m depth from surface. The focus for the drilling
exploration program will be on both lateral expansion and step out
drilling from the inferred resource, as well as testing for
potentially higher-grade areas, particularly at depth and within
other target areas with significant geochem expression at the
surface.
Terms of Deal Structure
The Option and JV Agreement provides for the acquisition of an
initial undivided 49% interest in the Property by paying Florin in
the aggregate an amount of $8,400,000
in cash payments, 4,200,000 common shares of the company and by
incurring in the aggregate exploration expenditures of $20,000,000 over a 4-year period. Pursuant
to the terms of the Option and JV Agreement, the cash payments and
share issuances contemplated in the first and second year of the
term of the Option and JV Agreement ($4,100,000 in cash and 2,200,000 common shares)
are firm commitments and are not optional payments once the TSX
Venture Exchange ("TSX-V") approval has been issued. St.
James is under a best efforts obligation to promptly seek TSX-V
approval.
Upon completion of these payments, the Company has the option to
acquire an additional undivided 36% interest in the Property by
producing a Bankable Feasibility Study within 3 years of the
exercise of the original 49% option. The Company also has the
option to acquire the remaining 15% interest in the Property by
paying Florin $50,000,000 within 2
years of exercising the 2nd Option.
The total cash and share consideration is estimated to be
$105,000,000 calculating the value as
of the close of the TSX-V on March 31,
2021.
Additionally, the Company has agreed to issue Florin an
additional 2,000,000 shares of the Company upon the completion of a
Technical Report prepared in accordance with NI 43-101 standards
identifying at least a 10,000,000 oz Au or Au equivalent in any
mineral resource category and an additional 2,000,000 shares of the
Company if it identifies a 20,000,000 oz Au or Au equivalent
mineral resource.
Dr. Stewart Jackson, P Geo,
senior technical adviser geologist, a Qualified Person within the
meaning of National Instrument 43-101 (Standards of Disclosure for
Minerals Projects), has reviewed and approved the technical and
scientific information presented herein as accurate and approved
this news release.
Florin and St. James are arm's length parties. Closing is
subject to TSX-V approval.
About St James Gold Corp.
St. James Gold Corp. is a publicly traded company listed on the
TSX Venture Exchange under the ticker "LORD", in the U.S. Market
listed on OTCQB under "LRDJF" and on Frankfurt Stock Exchange under
"BVU3". The company is focused on creating shareholder value
through the discovery and development of economic mineral deposits
by acquiring prospective exploration projects with well delineated
geological theories, integrating all available geological,
geochemical and geophysical datasets, and funding efficient
exploration programs. The Company currently holds both an
option to acquire a 100% interest in 29 claims covering 1,791 acres
in the Gander gold district in north-central Newfoundland adjacent to New Found Gold
Corp.'s Queensway North project, and an option to acquire a 100%
interest in 28 claims covering 1,730 acres in central Newfoundland adjacent to Marathon Gold's
Valentine Lake property. For more
corporate information please visit: http://stjamesgold.com/
George Drazenovic, CPA, CGA, MBA,
CFA
Forward Looking Statements
The foregoing includes forward looking statements which by their
nature are subject to risks and uncertainties. In particular there
is no assurance that the Company will be successful in its search
for high value gold assets in North
America. The Company's ability to acquire such assets is
subject to supply and demand in the market for such assets and the
financial ability of the Company to acquire such assets or obtain
financing needed to acquire such assets if identified none of which
is certain or can be guaranteed.
NEITHER THE 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.
St. James Gold Corp.
For further information, please
contact:
George Drazenovic
Chief Executive Officer
Tel: 1 (800)
278-2152
Email: info@stjamesgold.com
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SOURCE St. James Gold Corp.