SX:CC - Iceland Exploration Yields Bonanza Gold Grades Discovery Prompting the Spin-Out of Icelandic Holdings
(TheNewswire)
Montréal - TheNewswire - December 7, 2023 - St-Georges Eco-Mining Corp. (CSE:SX) (OTC:SXOOF) (FSE:85G1) is pleased to announce that its wholly-ownedsubsidiary, Iceland Resources EHF, has acquired surface and mineralsrights from private landowners on the Elbow Creek Project. Resultsfrom work done by the Company on behalf of the landowners are nowavailable.
Pursuant to the terms of the Agreement, the Company hasgranted the landowners a 2.5% NSR royalties, of which 1.3% can bebought back for US$1.3M within 90 days of completing a finalfeasibility study on the Project. Any additional payments tolandowners prior to production will be applied against future royaltypayments, except for the partial buyback option. Additionalrequirements related to access to the Project will require the Companyto expense US$50,000 within 60 days.
Spin-Out of Icelandic Holdings
The Company also announces that its board of directorshas approved, in principle, a strategic reorganization of theCompany’s assets, pursuant to which the Company would proceed with arestructuring transaction (the “ Spin-Out ”), wherebyit would spin out the common shares of its subsidiary St-GeorgesIceland Ltd. (the “ SXIceland Shares ”), which owns 100% of IcelandResources EHF, to shareholders of the Company at a ratio yet tobe determined, with the intent of listing St-Georges Iceland Ltd. onthe Canadian Securities Exchange (the “ CSE ”). Thecompletion of the Spin-Out will allow the Company to continue as aCanadian-focused company.
The decision to undertake the Spin-Out was prompted bythe Company’s recent success in demonstrating, in addition to theThor Project’s high level of prospectivity for gold, the broaduntested potential for significant gold mineralization within theElbow Creek Project. It is the Company’s viewpoint that the Spin-Outis the most effective way to unlock the value of the Icelandic assetsthat relate to their gold potential.
The Spin-Out remains subject to the continuedconsideration and discretion of the Company’s management and board.It is currently anticipated that the Spin-Out will be effected by wayof a plan of arrangement, and the Company will retain up to 19.9% ofthe SX Iceland Shares issued and outstanding at closing. However, thefinal terms of the Spin-Out and determination to proceed remainsubject to further tax and securities considerations, and the Companyexpects to provide a further update to shareholders over the ensuingfiscal quarters.
Elbow Creek Project Results
With significant gold and silver values in multiplezones, the Elbow Creek Project covers an area of 7,630 hectares(approximately 18,850 acres). The Project has had no previousprospecting or sampling on several of the mineralized zones identifiedby the Company’s geologists.
Mineralization is low-sulfidation epithermal veiningand brecciation hosted in basalt flows and rhyolite dikes. Themineralization identified has multiple samples assaying from 0.1 to137 g/t gold and 0.1 to 1,515 g/t silver (Table 1) from float andsub-cropping alteration. Individual zones have been mappedintermittently over 800 meters and 1,700 meters in length and 1 to 6meters in width at surface.
Table 1: Rock chip samples fromoutcrop and rock grab samples of float
| Sample No. |
| Au (g/t) |
| Ag (g/t) |
| As (ppm) |
| Hg (ppm) |
| Sb (ppm) |
| Te (ppm) |
| 95166 |
| 0.329 |
| 95167 |
| 0.108 |
| 95168 |
| 0.164 |
| 95169 |
| 0.524 |
| 95170 |
| 0.514 |
| 95171 |
| 0.262 |
| 95172 |
| 32.570 |
| 95173 |
| 1.597 |
| I0708051 |
| 0.381 |
| I0708054 |
| 0.740 |
| HD 1 |
| 3.170 |
| 2.80 |
| 72 |
| 0.012 |
| 1 |
| 9.0 |
| AB-00022 |
| 137.500 |
| 1515.00 |
| 25 |
| 0.550 |
| 8 |
| >500.0 |
| AB-00023 |
| 5.610 |
| 2.17 |
| 1910 |
| 0.124 |
| 93 |
| 1.2 |
| AB-00025 |
| 0.105 |
| 0.45 |
| 83 |
| 0.036 |
| 3 |
| 2.2 |
| AB-00026 |
| 2.790 |
| 21.70 |
| 110 |
| 0.020 |
| 2 |
| 16.4 |
| AB-00029 |
| 0.129 |
| 2.13 |
| 27 |
| 0.023 |
| 1 |
| 3.0 |
| AB-00030 |
| 0.767 |
| 15.95 |
| 26 |
| 0.089 |
| 2 |
| 23.3 |
| AB-00031 |
| 0.158 |
| 1.10 |
| 151 |
| 0.005 |
| 1 |
| 0.5 |
| AB-00060 |
| 0.126 |
| 0.24 |
| 1270 |
| 0.001 |
| 5 |
| 2.1 |
| AB-00063 |
| 0.782 |
| 1.21 |
| 33 |
| 0.107 |
| 2 |
| 0.1 |
| AB-00070 |
| 0.132 |
| 2.12 |
| 71 |
| 0.001 |
| 2 |
| 3.5 |
| AB-00071 |
| 0.217 |
| 3.31 |
| 12 |
| 0.008 |
| 1 |
| 10.1 |
| AB-00072 |
| 2.330 |
| 62.80 |
| 23 |
| 0.015 |
| 1 |
| 36.5 |
| AB-00073 |
| 3.510 |
| 33.60 |
| 24 |
| 0.028 |
| 1 |
| 22.7 |
| AB-00074 |
| 1.395 |
| 1.16 |
| 115 |
| 0.034 |
| 5 |
| 0.8 |
| AB-00075 |
| 0.538 |
| 1.06 |
| 136 |
| 0.019 |
| 5 |
| 0.7 |
| AB-00100 |
| 0.219 |
| 0.22 |
| 39 |
| 0.009 |
| 3 |
| 1.0 |
| AB-00101 |
| 1.190 |
| 3.02 |
| 4 |
| 0.001 |
| 2 |
| 39.6 |
| AB-00114 |
| 0.110 |
| 4.86 |
| 2 |
| 0.019 |
| 0 |
| 3.1 |
| AB-00119 |
| 0.183 |
| 0.89 |
| 121 |
| 0.001 |
| 8 |
| 3.6 |
| AB-00121 |
| 0.507 |
| 4.45 |
| 91 |
| 0.020 |
| 8 |
| 10.4 |
| AB-00123 |
| 0.256 |
| 0.97 |
| 59 |
| 0.001 |
| 4 |
| 2.8 |
| AB-00142 |
| 0.105 |
| 0.56 |
| 76 |
| 0.079 |
| 17 |
| 6.6 |
| AB-00145 |
| 0.105 |
| 0.90 |
| 74 |
| 0.129 |
| 19 |
| 7.6 |
| AB-00147 |
| 6.070 |
| 148.00 |
| 18 |
| 0.060 |
| 11 |
| 119.0 |
Photo 1: Sample AB00020 assays 137.5g/t gold, 1515 g/t silver. Field of view = 12 cm.
Photo 2: Breccia with multiplefragments of banded quartz-sulfide veins encased in fine-grainedsilica-sulfide (Sample AB00147). Field of view = 10 cm.
Although one area had previously been defined as anarea of interest in the 1990s, the Company’s geologists, led by ourexploration geologist, Peter Grieve, further prospected the entirearea and identified additional previously unrecognized and unsampledareas of alteration and mineralization over the last two fieldseasons. This work included panning streams for gold and following“float trains” of altered rock to the source.
The 2023 field season used similar prospecting methods,which led to two additional areas of alteration with veins and brecciafragments containing significant values in gold and silver. In concertwith values obtained from panning gold downstream of sub-croppingalteration, pXRF results, and petrographic analysis ( Tables 2 and 3 ), theassay results suggest significant potential for bonanza-type goldmineralization as described below. Trace elements generally observedin low sulfidation systems in other parts of the world are generallydepressed in Icelandic systems. Arsenic, antimony, and mercury areconsidered to be mostly background values, which bodes well for arelatively clean mining scenario if one develops. On the other hand,tellurium is highly anomalous; it could become a significant byproductas a critical mineral if values remain high throughout and it can berecovered economically.
It should be noted that the results from the pXRF arespot values that can generally be significantly higher than a wholerock assay. Furthermore, most of the samples tested by the pXRF arefrom brecciated material with clasts of highly mineralized materialcemented with less mineralized quartz. Although the pXRF results arepartially corroborated by assays of the entire sample in Table 2,there are no corroborative assay results for Table 3.
Table 2: pXRF results from field XRFcompared to laboratory assays of whole rock.
| pXRF Sample |
| Au (ppm) |
| Ag (ppm) |
| ALS Assay |
| Au (g/t) |
| Ag (g/t) |
| AB-00020 |
| 328 |
| 2211 |
| AB-00020 |
| 137.500 |
| 1515.00 |
Table 3: pXRF results compared with apetrologic review of a thin section of the same sample.
| pXRF Sample |
| Au (ppm) |
| Ag (ppm) |
| Panda Petro |
| Description |
| Panda 2084 |
| 23,700 |
| 1160 |
| Panda 2084 |
| Banded quartz veining layered withpyrite-chalcopyrite-electrum (20:1:1 ratio) (likely source of pannedgold downstream) |
The sample from Table 3 was not assayed. It can only beverified from thin-section work completed by PANDA Geoscience andothers. The electrum present at ~1% suggests significant free gold inthe sample.
Photo 3: Sample 2084 (WPT 58): Pyrite, chalcopyrite, and electrum withinquartz in the pyrite-rich material. Field of view = 0.6 mm, reflected light.
During the 2023 field season, the Company’sgeologists identified additional potential areas of alteration andcollected another 91 rock and soil samples. In addition, PlanetaryGeophysics Pty Ltd was contracted to complete an extensive groundmagnetic survey over our Thor Project, as well as a small groundmagnetic survey on this property. The results have provided IcelandResources with multiple additional targets at Thor and helped identifyalterations and lithologies on the Company’s new project.
Herb Duerr, president of St-GeorgesEco-Mining, commented : “…Thordis Bjork Sigurbjornsdottir,President of Iceland Resources, and her team of geologists haveprovided excellent results.” “…Under Thordis’ leadership, theCompany is proving gold exists in Iceland in several areas welloutside of our flagship Thor Project.” “These areas are new,virgin discoveries with no previous prospecting other than theextensive stream sampling completed in the early 1990’s.” “…the Company is continuing to leverage its vast proprietary database toprospect and discover new gold zones in Iceland.” “…This newlyacquired project added to Thor and our other licenses show realpotential for bonanza grade gold and silver,” “…makes forexciting times for our Company.” “…We look forward to receivingthe final results of our sampling from this field season and to our2024 field season’s new revelations.”
Completion of the Spin-Out is subject to a number ofconditions, including but not limited to the approval of the CSE and,if applicable, court and disinterested shareholder approval, as wellas other closing conditions and the final approval of the board ofdirectors of the Company. The Spin-Out cannot close until theapplicable regulatory, court, and shareholder approvals are obtained.There can be no assurances that the Spin-Out will be completed asproposed or at all.
In the event that the Company determines to proceedwith the Spin-Out, further details will be provided in a disclosuredocument to be prepared and filed in connection therewith. Investorsare cautioned that, except as disclosed in the disclosure document tobe prepared in connection with the Spin-Out, any information releasedor received with respect to the foregoing matters may not be accurateor complete and should not be relied upon. Trading in the securitiesof the Company should be considered highly speculative.
Ongoing Comprehensive Business ModelAnalysis
The Company continues its ongoing comprehensivebusiness model analysis. The evaluation process includes reviewingdifferent scenarios, from the spin out of additional assets to themonetization of other business segments.
Quality Assurance and Control
For samples collected by Iceland Resources (AB samplesseries) the Quality Assurance and Quality Control was conducted underthe supervision of Peter Lincoln Grieve a geological contractor hiredby Iceland Resources EHF, which adheres to CIM Best PracticesGuidelines for exploration related activities conducted at itsfacility in Reykjavik, Iceland. The QA/QC procedures are overseen by aQualified Person on site.
Iceland Resources QA/QC protocols are maintainedthrough the insertion of certified reference material (standards),blanks and lab duplicates within the sample stream.
Field samples were logged and bagged in the field undersupervision using standard sampling methods, relocated to IcelandResources’ facility in Reykjavik and then sent to ALS MineralsLoughrea, Ireland for analysis (Sample prep method PREP-22, goldanalysis by method Au-ICP22 and multi-element by method ME-MS42).Chain of custody is maintained from the field site, through submittaland on to analysis at the ALS laboratory.
Analytical testing is performed by ALS MineralsLoughrea, Ireland. The entire sample is coarsecrushed, and then the entire sample is pulverized to 85% passing 75microns. Samples are then analyzed using Au -50g Fire Assay, ICP-AES with reporting limits of 0.001 - 10 part permillion (ppm). Overlimit gold analysis based on a Fire assay resultexceeding 10 ppm, are analyzed by Au-GRA22, 50g fire assay with agravimetric finish and a reporting limit 0.05 – 10,000ppm. Overlimitanalyses for Ag, Cu, Pb, Zn, As, and Hg use ME-ICP41a.
Herb Duerr, P.Geo. is a QualifiedPerson as defined by National Instrument 43-101 (“NI43-101”) and has reviewed and approved thescientific and technical contents of this news release.
Peter Lincoln Grieve MAIG (AustralianInstitute of Geoscientists member #1725) is a Competent Person (CP) asdefined by the JORC Code and a Qualified Person as defined by NationalInstrument 43-101 (“NI 43-101”) and hasreviewed and approved the scientific and technical contents of thisnews release.
ON BEHALF OF THE BOARD OF DIRECTORS
‘Herb Duerr’
HERB DUERR
President & CEO
1. About St-Georges Eco-Mining Corp.
St-Georges develops new technologies to solve some ofthe most common environmental problems in the mining sector, includingmaximizing metal recovery and full-circle battery recycling. TheCompany explores for nickel & PGEs on the Manicouagan and JulieProjects on Quebec’s North Shore and has multiple explorationprojects in Iceland, including the Thor Gold Project. Headquartered inMontreal, StGeorges’ stock is listed on the CSE under the symbol SXand trades on the Frankfurt Stock Exchange under the symbol 85G1 andas SXOOF on the OTCQB Venture Market for early stage and developingU.S. and international companies. Companies are current in theirreporting and undergo an annual verification and managementcertification process. Investors can find Real-Time quotes and marketinformation for the company on www.otcmarkets.com
Visit the Company website at www.stgeorgesecomining.com
For all other inquiries: public@stgeorgesecomining.com
The Canadian Securities Exchange(CSE) has not reviewed and does not accept responsibility for theadequacy or the accuracy of the contents of this release.
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