Mineral Resource Estimate Highlights
Northeast Zone - Inferred Mineral Resource of 740,000 tonnes at an average grade of 4.07 g/t gold, for 96,000 contained ounces at a cut-off grade of 2.5 g/t gold in a conceptual underground development; and- *
Pit Zone - Inferred Mineral Resource of 990,000 tonnes at an average grade of 1.71 g/t gold, for 54,000 contained ounces at a cut-off grade of 0.5 g/t gold in a conceptual open-pit.
The Mineral Resource Estimates are presented below in Tables 1 and 2.
*The term “Pit Zone” reflects previously established deposit nomenclature that has been retained by Magna Terra. It does not denote application of an optimized pit shell or envelope for definition of Mineral Resources presented in Table 2 below.
“We are very pleased to have the opportunity to position ourselves through the acquisition of ExploreCo in the world class mining jurisdictions of
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Share Purchase Agreement
Under the SPA, Magna Terra will acquire ExploreCo by issuing to Anaconda an aggregate number of common shares of the Company equal to 100% of the outstanding Magna Terra common shares on the closing date of the Acquisition, following the completion of the previously announced share consolidation (see below and news release dated
The Acquisition is therefore subject to Magna Terra obtaining the approval of its disinterested shareholders at a special meeting (the “Meeting”) to be called to that effect as soon as possible in
The Company is presently working on the information circular (the “Circular”) that will be sent to its shareholders in connection with the Meeting, and will contain sufficient information on the Share Consolidation, the Acquisition and the Reverse Take-Over, ExploreCo and its assets, the Subscription Receipt Offering (as defined below) and Magna Terra post-transaction, so as to allow Magna Terra shareholders to make an informed decision. The contents of the Circular must be approved by the Exchange before it can be mailed out to Magna Terra shareholders.
The updated Mineral Resource Estimate for the Rattling Brook Deposit is 5,460,000 tonnes at an average grade of 1.45 g/t gold for 255,000 contained ounces at a cut-off grade of 1.0 g/t gold in 3 mineralized zones; the Road, Apsy and
Table 1: Rattling Brook Deposit Mineral Resource Estimate – Effective Date: January 23, 2019
Zone | Cut-Off (Au g/t) | Category | Rounded Tonnes | Au (g/t) | Rounded Ounces |
Apsy | 1.0 | Inferred | 2,850,000 | 1.52 | 139,000 |
Road | 1.0 | Inferred | 2,120,000 | 1.28 | 87,000 |
1.0 | Inferred | 480,000 | 1.81 | 28,000 | |
Total | 1.0 | Inferred | 5,460,000 | 1.45 | 255,000 |
- This Mineral Resource Estimate was prepared in accordance with NI 43-101 and the CIM Standards (2014)
- Mineral Resource Estimate tonnages have been rounded to the nearest 10,000 and ounces have been rounded to the nearest 1,000. Totals may not sum due to rounding.
- A cut-off of 1.00 g/t gold was used to estimate Mineral Resources.
- Mineral Resources were interpolated using Ordinary Kriging from 1.5m downhole assay composites.
- An average bulk density of 2.70 g/cm3 has been applied.
- Over 90% of Mineral Resources occur above a depth of 150m below surface, the current maximum depth of the Anaconda Mining operated
Pine Cove Mine . Mineral Resources were reported within an additional 50m of the 150m benchmark, to a maximum depth of 200m, and are considered to reflect reasonable prospects for economic extraction in the foreseeable future using conventional open-pit mining methods at a gold price of CAD$1,550 per ounce. - Mineral Resources do not have demonstrated economic viability.
- This estimate of Mineral Resources may be materially affected by environmental, permitting, legal title, taxation, sociopolitical, marketing, or other relevant issues.
The Inferred Mineral Resource Estimate for the
Table 2:
Area | Cut-Off (Au g/t) | Category | Rounded Tonnes | Au (g/t) | Rounded Ounces |
2.5 | Inferred | 740,000 | 4.07 | 96,000 | |
* | 0.5 | Inferred | 990,000 | 1.71 | 54,000 |
Total | 0.5 and 2.5 | Inferred | 1,720,000 | 2.72 | 151,000 |
- This Mineral Resources Estimate was prepared in accordance with NI 43-101 and the CIM Standards (2014)
- Mineral Resource tonnages have been rounded to the nearest 10,000 and ounces have been rounded to the nearest 1,000. Totals may not sum due to rounding.
- A cut-off of 2.50 g/t gold was used to estimate Mineral Resources for the
Northeast Zone . - A cut-off of 0.50 g/t gold was used to estimate Mineral Resources for the
Pit Zone . - Mineral Resources were interpolated using Ordinary Kriging from 1.5m assay composites capped at 15 g/t gold.
- An average bulk density of 2.74 g/cm3 has been applied.
- Northeast Zone Mineral Resources extend to a maximum depth of 225m below surface and are considered to reflect reasonable prospects for economic extraction in the foreseeable future using conventional underground mining methods at a gold price of CAD
$1,550 per ounce. - Pit Zone Mineral Resources extend to a maximum depth of 100m below surface and are considered to reflect reasonable prospects for economic extraction in the foreseeable future using conventional open-pit mining methods at a gold price of CAD
$1,550 per ounce. - Mineral Resources do not have demonstrated economic viability.
- This estimate of Mineral Resources may be materially affected by environmental, permitting, legal title, taxation, sociopolitical, marketing, or other relevant issues.
*The term “Pit Zone” reflects previously established deposit nomenclature that has been retained by Magna Terra. It does not denote application of an optimized pit shell or envelope for definition of Mineral Resources presented in Table 2 above.
A Historical Mineral Resource Estimate prepared in accordance with NI 43-101 and the CIM Standards (2014) by ExploreCo exists at the date of this press release for the Thor Deposit of the
Table 3: Historical Mineral Resource Estimate and Sensitivity Report for the Thor Deposit – Effective date
Au Cut-off (grams per tonne) | Tonnes> Cut-off (tonnes) | Grade > Cut-off Au (grams per tonne) | Contained Ounces Au* |
Indicated | |||
0.50 | 1,817,000 | 1.42 | 83,000 |
*1.00 | 937,000 | 2.09 | 63,000 |
2.00 | 357,000 | 3.19 | 36,600 |
Inferred | |||
0.50 | 847,000 | 1.15 | 31,000 |
*1.00 | 350,000 | 1.79 | 20,000 |
2.00 | 94,000 | 2.90 | 8,800 |
*Historical Mineral Resource Estimate Cut-off gold grade is 1.0 g/t
About the Great Northern and Viking Projects
- The Great Northern and Viking Projects comprise 2 separate claim blocks, totalling 9,775 hectares (Great Northern - 4,175 hectares; Viking – 5,600 hectares) that are located 3 km north and 15 km south of the community of Jackson’s
Arm, NL , respectively; - Both Project areas cover highly prospective geology coincident with 20 kilometres of strike along a regional scale, gold-related structure - the Doucer’s Valley Fault;
- Located adjacent to the Doucer’s Valley Fault, part of the Long Range Fault system – a fertile gold bearing structure, similar to that associated with Marathon Gold’s
Valentine Lake Project in centralNewfoundland , which has been the focus of recent significant mineral resource growth and discovery; - Host to several known gold deposits including
Rattling Brook (Great Northern) and Thor (Viking) as well as high-grade prospects including Jackson’s Arm (Great Northern) that present numerous drill ready targets and potential for near term discovery; - Several untested gold prospects and showings, including the Shrik, Stocker, Boot N’ Hammer, 954 Prospects,
Incinerator Trail Zone ;
Surface grab samples^ assaying up to 20.2 g/t gold and 1,232 g/t silver at the Boot N’ Hammer Prospect; up to 56.7 g/t gold and 2.75 oz/t silver at the Stocker Prospect; up to 7.2 g/t gold at the Shrik Prospect; and up to 13.6 g/t gold at the 954 Prospect, hosted within a 1.7 km long by 40 to 400 m wide continuous alteration zone;
Note: Analytical results in this press release section are sourced in the Great Northern Project Technical Report (2019) and Viking Project Technical Report (2016) - see “Technical Reports and Documentation Notes” below.
About the
The Cape Spencer Project comprises 104 mineral exploration claims covering 2,365 ha and is located 15 kilometers southeast ofSaint John, New Brunswick ;- The Project covers 8 kilometres of highly prospective strike in the hanging wall of a regional scale structure with 10 known gold occurrences, including the
Emilio Zone (7 .86 g/t over 7.4 m; AB-04-06) and other drill ready targets; - Hosted within similar Proterozoic-aged rocks of the
Avalon Zone that host multi-million ounce gold deposits such as Haile,Ridgeway andHope Brook ; - Two gold deposits open along strike (Northeast and Pit Zones);
- Emilio Zone – Prospect at
East end of Property- 7.86 g/t gold over 7.4 m (AB-04-06; near surface);
- 12.00 g/t gold over 1.4 m (chip) and 2.77 g/t gold over 3.0 m (chip); and
- ^Surface grab samples up to 168.00 g/t gold
Birches Zone – 300-metre-long gold-bearing alteration zone south of theNortheast Zone - 17.85 g/t gold over 1.0 m within a zone grading 5.23 g/t gold over 4.0 m (MR-150);
- 9.48 g/t gold over 1.0 m within a zone grading 4.01 g/t gold over 4.0 m (MR-149); and
- 3.60 g/t gold over 5.0 m (AB-04-08).
- Zone A – Grab samples up to 53.50 g/t gold.
- Zone C – Grab samples up to 8.92 g/t gold and chip sample of 2.77 g/t gold over 3.0 m.
- Zone D – Five occurrences of visible gold with grab samples up to 7.12 g/t gold.
Note: Analytical results in this press release section are sourced in the
Additional Information on ExploreCo
ExploreCo was constituted by Anaconda on
The Company will issue a subsequent news release to provide certain financial information on ExploreCo and certain pro forma financial information on Magna Terra post-transaction concurrently with the mailing of the Circular in preview of the Meeting.
Magna Terra Financing
Concurrently with the Acquisition, Magna Terra proposes to complete, on a post-consolidation basis, a non-brokered private placement of subscription receipts (the “Subscription Receipt Offering”) for minimum proceeds of
Upon satisfaction of the Escrow Release Conditions (as defined below), each FT Subscription Receipt shall be exchangeable for one flow-through common share of the Company. Each Unit Subscription Receipt shall be exchangeable for one unit of the
The Subscription Receipt Offering is anticipated to close on or before
In connection with the Subscription Receipt Offering, the Company will pay finder’s fees equal to 6% of the aggregate gross proceeds originating from a finder. As additional compensation, the Company will also issue non-transferable warrants (the “Finder’s Warrants”) equal to 6% of subscription receipts originating from such finder. Each Finder Warrant shall entitle the holder thereof to purchase one common share of the Company at a price of
Magna Terra Post-Acquisition
Following the completion of the Acquisition, but prior to completion of the Subscription Receipt Offering, it is anticipated that Anaconda will hold approximately 50% of the issued and outstanding shares of Magna Terra, on a post-consolidation basis. The current directors and officers of Magna Terra will continue to act in such capacity with no changes contemplated to current management.
Furthermore, although Magna Terra does not currently intend to divest of any of its assets in
In connection with the Acquisition and the Subscription Receipt Offering, Magna Terra intends to qualify as a Tier 1 Mining Issuer on the Exchange following completion of these transactions. This remains subject to the approval of the Exchange as Magna Terra is currently listed as a Tier 2 Mining Issuer. Furthermore, the Company will request an exemption from the sponsorship requirements under Exchange Policy 2.2 - Sponsorship and Sponsorship Requirements (“Policy 2.2”) as the Company believes that it meets all of the criteria for such exemption under Policy 2.2.
Technical Reports and Documentation Notes
Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability. All Mineral Resource Estimates were prepared in accordance with NI 43-101 and the CIM Standards (2014).
The Mineral Resource Estimate quoted in this press release regarding the
The Mineral Resource Estimate quoted in this press release regarding the Cape Spencer Project refers to the technical report: “NI 43-101 Technical Report and Mineral Resource Estimate on The
The Historical Mineral Resource Estimate quoted in this press release regarding the
Rock and core sample lengths from historic exploration programs that are reported in this press release are presented as core or sample lengths only. True widths of mineralized intervals are not known. All quoted drill core sample intervals, grades and production statistics were compiled from historic assessment reports obtained from either the government of New Brunswick or government of
Qualified Persons
This news release has been reviewed and approved by David A. Copeland,
About Magna Terra
FOR FURTHER INFORMATION PLEASE CONTACT:
647-478-5307
Email: info@magnaterraminerals.com
Website: www.magnaterraminerals.com
Completion of the transaction is subject to a number of conditions, including but not limited to,
The
Neither
Cautionary Statements Regarding Forward Looking Information
Some statements in this release may contain forward-looking information. All statements, other than of historical fact, that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future (including, without limitation, statements regarding potential mineralization) are forward-looking statements. Forward-looking statements are generally identifiable by use of the words “may”, “will”, “should”, “continue”, “expect”, “anticipate”, “estimate”, “believe”, “intend”, “plan” or “project” or the negative of these words or other variations on these words or comparable terminology. Forward-looking statements are subject to a number of risks and uncertainties, many of which are beyond the Company’s ability to control or predict, that may cause the actual results of the Company to differ materially from those discussed in the forward-looking statements. Factors that could cause actual results or events to differ materially from current expectations include, among other things, without limitation, failure by the parties to complete the Acquisition, failure to establish estimated mineral resources, the possibility that future exploration results will not be consistent with the Company's expectations, changes in world gold markets or markets for other commodities, and other risks disclosed in the Company’s public disclosure record on file with the relevant securities regulatory authorities. Any forward-looking statement speaks only as of the date on which it is made and except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement.
Source:
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