International Samuel Exploration Corp. has entered into an option agreement to acquire a 100-per-cent interest in a former Noranda Exploration project referred to as the Lucifer property (comprising 4,588.41 hectares) located in northwestern British Columbia’s Golden Triangle. The property is located in the northeastern part of the Golden Triangle, along the same geological trend as Evrim Resources’ Ball Creek property, Colorado Resources’ Hank and North Rok properties, Skeena Resources’ GJ property, GT Gold Corp.’s Tatogga property, and Imperial Metals’ Red Chris mine.
According to the British Columbia Ministry of Mines’ database, previous exploration work by Noranda (1990 to 1991) identified a 400-metre-wide, 1.2-kilometre-long, north-northeast-trending zone of hydrothermal alteration associated with strongly elevated gold concentrations and base metal soil geochemical anomalies (Aris report No.21091). The British Columbia Ministry of Mines Minfile database documents two shallow drill holes completed in 1991, which reportedly intersected 15.1 grams per tonne gold over 1.36 metres and 0.7 gram per tonne gold over 5.70 metres. In addition to the mapped alteration zone and strong soil geochemical anomalies, Noranda identified multiple strong gold-in-stream anomalies in the central part of the property, which have not been followed up. It is important to note that the company has not verified the historical exploration results reported for the former Lucifer property as documented by the British Columbia Ministry of Mines.
Since 2005, infrastructure throughout the Golden Triangle has steadily improved and several of the known porphyry copper gold prospects, including Red Chris, Galore Creek and the KSM project (Seabridge Resources), have either made production decisions or reported positive feasibility studies. The recent production decision for the Brucejack gold deposit (Pretium Resources), combined with the commencement of production at Red Chris, the recent discovery announced by GT Gold Corp. of significant gold mineralization associated with gold-in-soil anomalies at the Saddle zone and a resurgence of exploration activity, has re-established the Golden Triangle as one of British Columbia’s most important mining districts.
Technical disclosure in this news release has been reviewed and approved by Carl Von Einsiedel, a qualified person as defined by National Instrument 43-101.
Pursuant to the terms of the option agreement, in order to exercise the option, International Samuel will be required to issue three million common shares to the vendors (two million common shares on TSX Venture Exchange approval and an additional one million common shares by Oct. 31, 2018). In addition, on exercise, International Samuel will grant a 2-per-cent net smelter return royalty, of which 1.5 per cent can be purchased by International Samuel at $500,000 per 0.5 per cent. The company will pay a finder’s fee in relation to this transaction, which finder’s fee will be in compliance with applicable securities laws and exchange policies. This transaction is subject to TSX-V approval.
The company also announces a non-brokered private placement offering of up to four million units at a price of five cents per unit to raise gross proceeds of up to $200,000. Each unit will consist of one common share of the company and one-half of one transferable common share purchase warrant. Each whole warrant will entitle the holder thereof to purchase one common share of the company for a 12-month exercise period at a price of 15 cents per share. This financing is subject to TSX-V approval.
The proceeds of the private placement will be used for the purpose of carrying out the exploration programs on the property and for general working capital.