C:CC - Contact Gold Receives Shares and Cash Payment from Showcase Minerals for North Star and Dixie Flats Option
(TheNewswire)
Vancouver, B.C. - TheNewswire - January 24, 2024 – Contact Gold Corp.(the “Company” or “Contact Gold”) (TSXV:C ) ( OTC:CGOLF) is pleased to announce that Showcase Minerals Inc.(“ Showcase ”) (CSE: SHOW) has issued 330,000 shares and paid USD25,000 to the Company to satisfy the 2024 payment related to theoption agreement on Contact Gold’s North Star and Dixie Flats goldprojects (the “Carlin Projects”), and Contact Gold’s Woodruffgold-vanadium claims (“Woodruff").
North Star and Dixie Flats are located on Nevada’sCarlin Trend, immediately east of the South Railroad development stageproject operated by Orla Mining (TSX: OLA), due south of Nevada GoldMine’s past producing Rain and Emigrant gold mines, and northeast ofthe Company’s resource stage Pony Creek gold project.
The option agreement with Showcase was signed inJanuary of 2021, and if all conditions are met will result in Showcaseacquiring 100% interest in Woodruff and the Carlin Projects (subjectto a 0.25% NSR on the Dixie Flats Claims payable to Contact Gold, inaddition to those payable to an affiliate of Sandstorm GoldRoyalties). Total share consideration payable to the Company tosatisfy the option agreement will result in Contact Gold holding a 5%ownership position in Showcase.
Contact Gold currently holds 555,646 shares ofShowcase.
North Star & Dixie Flats:
Prior to optioning the Carlin Projects to Showcase,Contact Gold completed 26 line-kilometres of CSAMT and gravitygeophysical surveys over the projects to better define drill targets. In 2019, the Company completed one drill hole at North Star, leavingthe key exploration target largely untested.
Initial results reinforced management’s belief in theprospectivity of the property, while the Company’s focus on theflagship Green Springs and Pony Creek projects meant that explorationdollars were limited for Dixie Flats, North Star, and Woodruff.Interpretation of gravity data indicates that the main Emigrant-DarkStar controlling structure projects through Dixie Flats and NorthStar, and ultimately to Orla Mining’s Dark Star deposit.
Location of Dixie Flats, North Starand Pony Creek
Showcase has recently announced the completion ofadditional seismic surveys across the properties, disclosing that ithas developed a new series of drill targets for extension of the knownmineralization in the northwest portion of the Dixie Flats claims.
There are 17 historic drill holes on the Dixie Flatsproperty, several of which intersected significant goldmineralization. Previous operators successfully intersected goldmineralization in drilling at Dixie Flats, with a top intercept of 0.23 g/t Au over 23 metres at the Webb –Devils Gate contact, a key regional host horizon for goldmineralization.
The interface of the Devils Gate limestone and Webbmudstone is the primary host of mineralization at Dixie Flats. NevadaGold Mine’s nearby Emigrant Mine and Rain Mine hosted deposits indissolution breccia zones at the contact between the Webb mudstone andthe underlying Devils Gate limestone.
Qualified Person and technicaldisclosure
The scientific and technical information contained inthis news release has been reviewed and approved by Vance Spalding,CPG, VP Exploration, Contact Gold, who is a “qualified person”within the meaning of National Instrument 43-101, Standards of Disclosure for MineralProjects (“NI 43-101”).
North Star, Dixie Flats, and Woodruff are early-stageexploration properties and do not contain any mineral resourceestimates as defined by NI 43-101 Standards of Disclosure for MineralProjects due to insufficient exploration todate. The North Star claim block comprises 56 claims for approximately360 Hectares, while Dixie Flats comprises 180 claims totalling 1,311Hectares. The information on the adjacent projects is taken frompublicly available sources and is not necessarily indicative of themineralization on the Dixie Flats or North Star properties.
About Contact Gold Corp.
Contact Gold is an exploration company focused onmaking district scale gold discoveries in Nevada. Contact Gold’sextensive land holdings are on the prolific Carlin and Cortez goldtrends which host numerous gold deposits and mines. Contact Gold’sland position comprises approximately 117.4 km 2 of target richmineral tenure hosting numerous known gold occurrences, ranging fromearly- to advanced-exploration and current gold resources.
Additional information about the Company is availableat www.contactgold.com .
For more information, please contact: +1 (604)449-3361
Matthew Lennox-King – President & CEO
E-mail: info@ContactGold.com
Neither the TSXV nor its RegulationServices Provider (as that term is defined in the policies of theTSXV) accepts responsibility for the adequacy of this release. Nostock exchange, securities commission or other regulatory authorityhas approved or disapproved the information contained herein.
Cautionary Note RegardingForward-Looking Information
This news release contains"forward-looking information" and "forward-lookingstatements" (collectively, "forward-lookingstatements") within the meaning of the applicable Canadiansecurities legislation. All statements, other than statements ofhistorical fact, are forward-looking statements and are based onexpectations, estimates and projections as at the date of this newsrelease. Any statement that involves discussions with respect topredictions, expectations, beliefs, plans, projections, objectives,assumptions, future events or performance (often but not always usingphrases such as "expects", or "does not expect","is expected", "anticipates" or "does notanticipate", "plans", "budget","scheduled", "forecasts", "estimates","believes" or "intends" or variations of suchwords and phrases or stating that certain actions, events or results"may" or "could", "would","might" or "will" be taken to occur or beachieved) are not statements of historical fact and may beforward-looking statements. In this news release, forward-lookingstatements relate, among other things, to the completion of theearn-in by Showcase, and the anticipated exploration activities byShowcase at the Woodruff, Dixie Flats and North Starproperties.
These forward-looking statements arebased on reasonable assumptions and estimates of management of theCompany at the time such statements were made. Actual future resultsmay differ materially as forward-looking statements involve known andunknown risks, uncertainties and other factors which may cause theactual results, performance or achievements of the Company tomaterially differ from any future results, performance or achievementsexpressed or implied by such forward-looking statements. Such factors,among other things, include: fluctuations in general macroeconomicconditions; fluctuations in securities markets; fluctuations in spotand forward prices of gold, silver, base metals or certain othercommodities; fluctuations in currency markets (such as the Canadiandollar to United States dollar exchange rate); change in national andlocal government, legislation, taxation, controls, regulations andpolitical or economic developments; risks and hazards associated withthe business of mineral exploration, development and mining (includingenvironmental hazards, industrial accidents, unusual or unexpectedformations pressures, cave-ins and flooding); inability to obtainadequate insurance to cover risks and hazards; the presence of lawsand regulations that may impose restrictions on mining; employeerelations; relationships with and claims by local communities andindigenous populations; availability of increasing costs associatedwith mining inputs and labour; the speculative nature of mineralexploration and development (including the risks of obtainingnecessary licenses, permits and approvals from governmentauthorities); and title to properties. Although the forward-lookingstatements contained in this news release are based upon whatmanagement of the Company believes, or believed at the time, to bereasonable assumptions, the Company cannot assure shareholders thatactual results will be consistent with such forward-lookingstatements, as there may be other factors that cause results not to beas anticipated, estimated or intended. Readers should not place unduereliance on the forward-looking statements and information containedin this news release. The Company assumes no obligation to update theforward-looking statements of beliefs, opinions, projections, or otherfactors, should they change, except as required by law.
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