Historical resource estimates as detailed in this news release exist on the Alwin property and is located in a mineralized structure that has been the subject of historic mine production. The 575.72-hectare project has several targets that were identified in previous drilling, soil sampling & IP surveys in the 2005-2008 period. Commercial production at the Alwin mine ceased during a period of low copper prices in 1982 and the most recent major exploration program ceased during the 2008/2009 global financial crisis.
Alwin Project History:
Exploration and mining programs were conducted on the property during the period of 1967 - 2008 by several mining companies and syndicates. Previous operators have mined ~230,000 tonnes of ore grading approximately 1.5% copper1. Approximately 2700 meters of underground tunneling have been established on the project, including 649 diamond drill holes, totaling 34,500 meters have been completed. In addition, trenching, geophysics and geological mapping on the property is well-documented.
Historical Resource Estimates:
A summary report prepared by
The Report disclosed a historical resource estimate was calculated in 1969/1970 by
The Report also disclosed that mining in 1972 and 1981 accounted for 240,000 tonnes grading 1.5% copper and after the last period of mining in 1981, a historical resource estimate was reported by
The Company believes that the historical estimates are relevant to conduct exploration on the
Terms of the Proposed Transaction
Under the terms of the LOI, GSP may acquire a 100% interest in the
- Cash payable:
CAD$25,000 upon receipt ofTSX Venture Exchange approval of the Option Agreement (the “Approval Date”);CAD$25,000 on or before the 1st Anniversary of the Approval Date;CAD$25,000 on or before the 2nd Anniversary of the Approval Date;CAD$50,000 on or before the 3rd Anniversary of the Approval Date;CAD$50,000 on or before the 4th Anniversary of the Approval Date; andCAD$75,000 on or before the 5th Anniversary of the Approval Date.
- GSP common shares:
- 200,000 on the Approval Date;
- 200,000 on or before the 1st anniversary of the Approval Date;
- 300,000 on or before the 2nd Anniversary of the Approval Date;
- 400,000 on or before the 3rd Anniversary of the Approval Date;
- 500,000 on or before the 4th Anniversary of the Approval Date;
- 900,000 on or before the 5th Anniversary of the Approval Date; and
- 2,000,000 on or before the earlier of a bankable feasibility study and the 8th anniversary of the Approval Date.
- Gross Smelter Returns Royalty (“GSR Royalty”):
- 1.8% GSR Royalty to the Vendors with GSP option to repurchase 0.8% GSR Royalty on or before the 1st anniversary of commencement of commercial production for
CAD$1.5 million , leaving the Vendors with a 1% GSR Royalty.
- 1.8% GSR Royalty to the Vendors with GSP option to repurchase 0.8% GSR Royalty on or before the 1st anniversary of commencement of commercial production for
Further details regarding the proposed Transaction with the Vendors will be provided in a comprehensive news release if, and when, the parties enter into the Option Agreement.
Qualified Person
The scientific and technical information contained in this news release as it relates to the
About
Contact Information - For more information, please contact:
Tel: (604) 619-7469
Email: simon@gspresource.com
Neither the
Investors are cautioned that the historical estimates do not mean or imply that economic deposits exist on the properties. The Company has not undertaken any independent investigation of the historical estimates nor has it independently analyzed the results of the previous exploration work in order to verify the accuracy of the information.
Forward Looking Information
This news release includes certain statements that constitute “forward-looking information” within the meaning of applicable securities law, including without limitation, execution of the Option Agreement, completing the proposed Transaction with the Vendors, exploration work on the
Forward-looking statements address future events and conditions and are necessarily based upon a number of estimates and assumptions. These statements relate to analyses and other information that are based on forecasts of future results, estimates of amounts not yet determinable and assumptions of management. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as “expects” or “does not expect”, “is expected”, “anticipates” or “does not anticipate”, “plans”, “estimates” or “intends”, or stating that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved), and variations of such words, and similar expressions are not statements of historical fact and may be forward-looking statements. Forward-looking statement are necessarily based upon a number of factors that, if untrue, could cause the actual results, performances or achievements of the Company to be materially different from future results, performances or achievements express or implied by such statements. Such statements and information are based on numerous assumptions regarding present and future business strategies and the environment in which the Company will operate in the future, including the price of metals, anticipated costs and the ability to achieve goals, that general business and economic conditions will not change in a material adverse manner, that financing will be available if and when needed and on reasonable terms, and that third party contractors, equipment and supplies and governmental and other approvals required to conduct the Company’s planned exploration activities will be available on reasonable terms and in a timely manner. While such estimates and assumptions are considered reasonable by the management of the Company, they are inherently subject to significant business, economic, competitive and regulatory uncertainties and risks.
Forward-looking statements are subject to a variety of risks and uncertainties, which could cause actual events, level of activity, performance or results to differ materially from those reflected in the forward-looking statements, including, without limitation: (i) risks related to gold, copper and other commodity price fluctuations; (ii) risks and uncertainties relating to the interpretation of exploration results; (iii) risks related to the inherent uncertainty of exploration and cost estimates and the potential for unexpected costs and expenses; (iv) that resource exploration and development is a speculative business; (v) that the Company may lose or abandon its property interests or may fail to receive necessary licences and permits; (vi) that environmental laws and regulations may become more onerous; (vii) that the Company may not be able to raise additional funds when necessary; (viii) the possibility that future exploration, development or mining results will not be consistent with the Company’s expectations; (ix) exploration and development risks, including risks related to accidents, equipment breakdowns, labour disputes or other unanticipated difficulties with or interruptions in exploration and development; (x) competition; (xi) the potential for delays in exploration or development activities or the completion of geologic reports or studies; (xii) the uncertainty of profitability based upon the Company’s history of losses; (xiii) risks related to environmental regulation and liability; (xiv) risks associated with failure to maintain community acceptance, agreements and permissions (generally referred to as “social licence”); (xv) risks relating to obtaining and maintaining all necessary government permits, approvals and authorizations relating to the continued exploration and development of the Company’s projects; (xvi) risks related to the outcome of legal actions; (xvii) political and regulatory risks associated with mining and exploration; (xix) risks related to current global financial conditions; and (xx) other risks and uncertainties related to the Company’s prospects, properties and business strategy. These risks, as well as others, could cause actual results and events to vary significantly.
Factors that could cause actual results to differ materially from those in forward looking statements include, but are not limited to, continued availability of capital and financing and general economic, market or business conditions, the loss of key directors, employees, advisors or consultants, adverse weather conditions, increase in costs, equipment failures, litigation, exchange rate fluctuations, failure of counterparties to perform their contractual obligations and fees charged by service providers. Investors are cautioned that forward-looking statements are not guarantees of future performance or events and, accordingly are cautioned not to put undue reliance on forward-looking statements due to the inherent uncertainty of such statements. The forward-looking statements included in this news release are made as of the date hereof and the Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable securities legislation.
1 Summary Report prepared by
2020 GlobeNewswire, Inc., source