SXOOF - St-Georges has secured the Ownership of All Mineral Licenses in the Republic of Iceland
(TheNewswire)
Reykjavik - TheNewswire - October 26, 2020 - St-Georges Eco-Mining Corp.(CSE:SX) (CNSX:SX.CN) (OTC:SXOOF) (FSE:85G1) is pleased to report that it has completed the acquisition ofMelmi EHF, the Icelandic corporation that owned the majority interestin the Thor Gold Project and the remainder or the Icelandic minerallicenses not already controlled by St-Georges.
This transformative acquisition gives total controlover the mineral licenses of the Republic of Iceland to St-Georges,making it the only junior exploration company to own all the mineralrights of a western country. This acquisition allows St-Georges tocontrol its destiny and plan its exploration campaigns with nointerference. It also gives the Company's geological team access toextensive libraries of geological data, a large number of historicalmineral samples and a well-maintained and secured national core shackthat will be useable for future development. Furthermore, all thediamond drill cores from the Thor Gold project are now in theCompany's ownership and possession. The Company expects to be able toresample these cores in the process of elaborating its maiden NI43-101 Gold-Silver and Copper resource estimate on the Thor GoldProject.
The Melmi EHF Acquisition
As previously disclosed in a press release on July 2,the Corporation will pay up to CA$775,000 in consideration of all theMelmi EHF shares as follows:
-
(i) pay $65,000 upon the executionof the definitive share purchase agreement (the "DefinitiveAgreement")
-
(ii) pay an additional $60,000 onthe earlier of: (a) 90 days of execution of the Definitive Agreement;and (b) the start of drilling on the Thor Gold Project;
-
(iii) issue $400,000 ofnon-transferable debentures of the Corporation bearing a 6% annualinterest, maturing 3 years from issuance (the "MaturityDate"), of $100,000 will be convertible into common shares in thecapital of SX (the "SX Shares") at a deemed price of $0.10per SX Shares, $150,000 at a deemed price of $0.15 per SX Shares, and$150,000 at a deemed price of $0.20 per SX Shares; and
-
(iv) as additional consideration,subject to and upon all the Licences Application having been granted,issue $250,000 non-transferable debentures of SX bearing a 6% annualinterest, maturing 3 years from issuance, and convertible into SXShares at a deemed price of $0.20 per SX Shares.
Iceland Operational Update
In September, the Corporation drilled a reversedcirculation (RC) drill hole for a total length of 124 meters.
In October, reconnaissance and follow-up fieldwork wasconducted in Vopnafjordur (Vopna) and Trollaskagi (Trolla) projects. Mineralization bearing outcrops were identified and sampled andbrought to St-Georges' secure facilities in Reykjavik for petrographicanalysis. Some of these samples were prepared to be sent for assays toALS Laboratories in Dublin, Ireland. Management expects that theresults of these essays will become available later this year, and theCompany expects to report on it as soon as the information becomesavailable.
Picture 1, Outcrop on Trolla GoldProject
Picture 2. Outcrop on Trolla GoldProject
Picture 3. Close up of a Quartz Veinfrom an Outcrop on Trolla
Picture 4 & 5: Quartz Vein fromTrolla Outcrop (Picture 3) Under Magnifying glass (10X)
Picture 5. Magnified Quartz veinfrom Trolla Outcrop gold is associated with pyrite in Iceland
Picture 6. Outcrop at Trolla GoldProject
Picture 7. Water Stream over Outcropat Vopna Gold.
Picture 8. Outcrop and Water Streambed at Vopna Gold Project
Vilhjalmur Thor Vilhjalmsson, President and CEO ofSt-Georges Eco-Mining Corp. commented: "(...) this is animportant milestone for St-Georges and will enable the Company to bemore aggressive in its exploration of Iceland geological and miningpotential. (...) We look forward to advancing the projects alreadyestablished and to discover additional potential across the wholecountry. We are committed to regularly informing our shareholders onthe progress of work in the field. Most of Iceland can be explored forminerals all year long. This allows us to modulate our efforts inrelation to the earned value of the different project timelines andkeep being constantly active on the Thor Gold flagship project. Havingfull ownership of Thor enables us to develop the project on our terms,maximizing the impact of the results while keeping the financialpressure and the share count dilution under control(...)".
For Regulators & MediasInquiries: Frank Dumas 514.295.9878 or fdumas@dumasbancorp.com
ON BEHALF OF THE BOARD OF DIRECTORS
"VilhjalmurThor Vilhjalmsson"
Vilhjalmur Thor Vilhjalmsson
President and CEO
About St-Georges
St-Georges is developing new technologies to solve someof the most common environmental problems in the miningindustry.
The Company controls directly or indirectly, throughrights of first refusal, all of the active mineral tenures in Iceland.It also explores for nickel on the Julie Nickel Project & forindustrial minerals on Quebec's North Shore and for lithium and raremetals in Northern Quebec and in the Abitibi region. Headquartered inMontreal, St-Georges' stock is listed on the CSE under the symbol SX,on the US OTC under the Symbol SXOOF and on the Frankfurt StockExchange under the symbol 85G1.
The Canadian Securities Exchange(CSE) has not reviewed and does not accept responsibility for theadequacy or the accuracy of the contents of this release.
About Iceland
Iceland c limate, l ocation, a ccess and i nfrastructure (Histed,R,2010)
Located in the North Atlantic, approximately midwaybetween Greenland and Great Britain, the warm North Atlantic Currentensures that the climate in Iceland, described as subpolar, oceanic,has generally higher temperatures than locations of similar latitudethroughout the world. Regions or places that have similar climate areTierra del Fuego, the Aleutian Islands and Alaskan Peninsula. Although Iceland lies close to the Arctic, its coasts remain ice-freeyear-round.
As can be expected, the southern coast is generallywarmer, wetter and windier than the northern coast. The lower-lying,inland areas in the north are the most arid, although snowfall in thenorth during the winter months is greater than in the south.
Historically, recorded temperature extremes for thecountry are 30.5 C and -38.0C. The high in Reykjavik was 26.2C in2008, and the low there was -24.5C in 1918. Although the Icelandicclimate can be harsh, the GI-Melmi JV completed a drilling program atThormodsdalur (Thor Gold Project) from November 2005 through May 2006without undue difficulty. In the north, the increased snowfall wouldmake an effort such as this more difficult. Reconnaissance is to belimited to the summer months.
Iceland's infrastructure is well developed and modern. Road construction was begun around the start of the 20 th century andpeaked during the 1980's. The roads are well constructed andmaintained asphalt, although some gravel roads are still found. Thecurrent road system connects most of the larger towns and villages andis mostly confined to the coastal areas. Currently, there are a totalof 12,691 kilometers of roads in Iceland that includes 3,262kilometers of paved surface. Inland road access diminishes to dirtroads to no roads making access to some areas difficult, requiringfoot travel or helicopter support. There are no railroads inIceland.
Geological Setting
Iceland occurs at the junction of two large physicalstructures; the Mid Atlantic Ridge and the Greenland-Iceland-FaeroesRidge (Figure 9). At this intersection, the mantle is hotter and lessdense than the surrounding mantle. The mantle material rises as aresult of heat and chemical-related density differences resulting in adome in the crust above. This hotspot is causing a higher rate ofextrusive volcanism at this point on the Mid Atlantic Ridge, whichhas, in turn, caused the region to be built up to a level more than 3kilometers above the surrounding seafloor and covers an area of morethan 350,000 km 2 . This is known as the Iceland BasaltPlateau. The portion of the plateau above sea level is now the countryof Iceland (Martin, et al., 2007).
Figure 9. Tectonic setting
In the Mid Atlantic Rift environment, the centralportions of Iceland have moved outwards, away from the zones of activerifting and crustal development such that oldest rocks occur towardsthe margins and youngest in the center. Due to the migration of thehotspot to the south-east with time, an asymmetry has been imparted tothe shape of the island. Currently, the hotspot lies under thesouth-eastern quadrant of the island (Corbett, 2004). This area nowdenotes the zone of active rifting and volcanism. Figure 10 shows thegeology of Iceland defined by tectonic zones that coincide with theages of the rocks.
Figure 10. Principal TectonicZones
The significant riftsystems that have focused volcanism through time are notedbelow.
-
- The Snaefellsnes-Skagi Rift Zone in western Icelandwas active in the 16-6.5 m.y. period.
- The Reykjanes-Langjokull Rift Zone in central westernIceland resulted in the development of the Reykjanes Peninsula fromabout 6 my.
- The North Volcanic Rift Zone became active from 3-4my and extends to the present time.
- An Eastern Volcanic Rift Zone is developing at thistime.
Significant quantities of felsic intrusive andextrusive rocks occur in the dominantly basaltic sequence, and thefelsic rocks locally display gold-anomalous hydrothermal alteration(Corbett, 2004).
Structurally, NE fractures reflect the spreading centredirection and are, therefore, some of the most numerous and laterallyextensive fracture patterns, commonly evident as normal faults thatmay be exploited by dykes. NS and ENE fractures are developed asconjugate fractures during the NW-SE extension.
Copyright (c) 2020 TheNewswire - All rights reserved.