DG:CC - Dixie Gold Inc. Provides Fiscal Summary for the Red Lake Gold Project
(TheNewswire)
Vancouver, British Columbia – April17, 2024 – TheNewswire – Dixie Gold Inc. (TSX VENTURE: DG)(“ Dixie Gold ” or the “ Corporation” )provides a fiscal summary to recap certain completed efforts relatedto its gold project in Ontario (the “Red Lake GoldProject”).
As outlined, during the past 24 months, the Red LakeGold Project has received more than $600,000 of expenditures (the“Third-Party Expenditures”), which the Corporation views to be asignificant amount relative to its listed-market capitalization, aswell as in terms of a greenfield expenditure at a grass-rootsexploration project.
Almost exclusively, recent expenditures at the Red LakeGold Project have occurred without the Corporation needing to fundthose exploration-related expenses, i.e. they were third-partyincurred during a project-level earn-in (since discontinued). As such,the Corporation achieved capital structure benefits by avoiding theshare dilution that such expenditures would likely have otherwisenecessarily required had a similar project-level expense beencomparably funded on a internal basis. Dixie Gold believes that itsmanagement approach and risk strategy to address the speculativenature of exploration has been prudent considering both marketconditions for junior equities and the high degree of risk inherent inearly-stage exploration.
Third-Party Filing
As previously disclosed by the Corporation, resultingassessment report (as pertains to the Third-Party Expenditures) waspublicly filed, by the third-party, with the relevant provincialauthority.
Interested parties may continue to find thatthird-party assessment report through the applicable provincialauthority website.
As described in that third-party report, no furtherwork at the Red Lake Gold Project was recommended by thatthird-party.
For convenience purposes only, a direct link to thethird-party report, as is externally hosted by the Government ofOntario, using third-party link, may be accessed by way of:https://www.geologyontario.mines.gov.on.ca/assessment/20000020574
The Corporation cautions that itdoes not assume responsibility for the accuracy and/or opinions and/orfindings contained within third-party documents, including but notlimited to, third-party assessment reports filed with provincialauthorities and/or hosted on third-party and/or externalwebsites.
Fiscal Overview of Project andRisks
Following the subsequent resolution of certainthird-party litigation related to the Corporation’s Red Lake GoldProject during the middle of 2023 (as disclosed and detailed by pastnews releases issued by the Corporation), Dixie Gold has been engagedin claim management activities related to theRed Lake Gold Project, including but not limited to applyingassessment credits at the project, including those generated by theThird-Party Expenditures, and other tenure-related activities.
As fiscal recap, since assembly of the Red Lake GoldProject was completed in early 2020, more than $1 million ofproject-level exploration work has been undertaken and completed, andsuch financial expenditures have either been funded directly by DixieGold (as detailed in the Corporation’s financial statements and pastnews releases, available through SEDAR+, www.sedarplus.ca), or asotherwise funded indirectly by third-party.
Despite this level of material direct and indirectfinancial expenditure, the Corporation is not aware of any drilltargets having been identified to-date at its Red Lake Gold Projectthat would otherwise justify or enable inaugural drilling to be basedaround at the present time.
From a fiscal perspective, and despite project-levelwork in excess of $1m at the Red Lake Gold Project, including theaforementioned summary of expenses incurred by both the Dixie Gold anda senior gold company, it is not known or determinable by theCorporation as to what amount of expenditure may ultimately berequired to define one or more drill targets, if such targets exist,and/or if such undertaking would be made.
The Corporation notes that to the extent it pursessubstantial forward-moving exploration at the Red Lake Gold Project,on a direct basis, it would likely require sourcing additional andmaterial amounts of capital, to the extent a funding market exists,which it believes may carry a significant cost of capital within thespeculative part of the early-stage exploration funding curve (due inpart to the Corporation’s listed-market capitalization andexpenditures at the Red Lake Gold Project to-date). The Corporationadvises that a material amount of forward work at the Red Lake GoldProject, to the extent then-deemed to be of merit by the Corporationand/or then-retained third-party consultants, may involve materialrisk of dilution given the listed-market capitalization of Dixie Gold(see also the "Risks and Uncertainties" sections of theCorporation's financial reports available on SEDAR+).
The Corporation continues to review its projectportfolio on an ongoing basis and may vary forward-focus within orthrough addition where, without limitation, it believes market and/orproject conditions warrant.
About Dixie GoldInc.
Dixie Gold Inc. (TSXV: DG) is a publicly tradedexploration company holding a portfolio of exploration projects inCanada.
The Corporation is subject to various risks anduncertainties, including those risks and uncertainties set out inpublic filings made by the Corporation, such public filings and otherimportant disclosures available through SEDAR+ (www.sedarplus.ca), aswell as by way of other publicly accessible filings.
For more information, please also visit www.dixiegold.ca
Signed,
Ryan Kalt
Chief Executive Officer
Dixie Gold Inc.
Forward-Looking Statements
This press release contains forward-looking statementswithin the meaning of Canadian securities laws. Some of theforward-looking statements can be identified by the use offorward-looking words. Statements that are not historical in nature,including the words "anticipate," "expect,""suggest," "plan," "believe,""intend,", “intention” "estimate,""target," "project," "should,""could," "would," "may,""will," "forecast" and other similar expressionsare intended to identify forward-looking statements. Theseforward-looking statements generally include statements that arepredictive in nature and depend upon or refer to future events orconditions, including, but not limited to statements related to theCorporation’s business in general and/or matters related to futureexploration work at or expenditures on or viability of theCorporation’s Red Lake Gold Project and/or as related to projectsheld by the Corporation elsewhere.
Without limitation, these statements are"forward-looking" because they are based on our currentexpectations about the markets we operate in and on various estimatesand assumptions. Actual events or results may differ materially fromthose anticipated in these forward-looking statements if known orunknown risks affect our business and transactions, or if ourestimates or assumptions turn out to be inaccurate.
Neither the TSXVenture Exchange nor its Regulation Services Provider (as that term isdefined in the policies of the TSX Venture Exchange) acceptsresponsibility for the adequacy or accuracy of thisrelease.
Contact Info:
Ryan Kalt
Chief Executive Officer
Dixie Gold Inc.
T: 604.687.2038
E. info@dixiegold.ca
W. www.dixiegold.ca
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