(TheNewswire)
Vancouver, British Columbia – TheNewswire - May 2, 2024 - Inflection Resources Ltd. (CSE:AUCU ) / ( OTC:AUCUF ) / ( FSE:5VJ) (the"Company" or "Inflection") is pleased to provide an update on its ongoing exploration program inNew South Wales, Australia conducted under an exploration agreement(the “Exploration Agreement”) with and fully funded by AngloGoldAshanti Australia Limited (“AngloGold”) announced on June 14,2023.
Summary Highlights:
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AngloGold has elected to designate Inflection’s DuckCreek Exploration License (EL-8965) as a Phase II Project as definedin the Exploration Agreement.
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Phase I of the Exploration Agreement, which is drilltesting the portfolio of regional targets, is ongoing and an amendmentto the Exploration Agreement has been made to accommodate the earlyelection of a Phase II project. AngloGold stillretains the right to designate four additional projects in addition toDuck Creek upon completion of Phase I.
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The Duck Creek Phase II exploration program willinitially comprise approximately eight deep holes testing a variety ofstep-out and geophysical targets, including those defined by therecently completed geophysical survey announced on April 8, 2024. The Company expects drilling to commence in June.
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AngloGold has requested that Inflection operate theDuck Creek Phase II exploration program for a 10% management fee,although it retains the right to take over as project manager at anytime.
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One pre-existing and two recently acquired explorationlicenses comprising of multiple geophysical targets have beenincorporated into Phase I of the Exploration Agreement.
Alistair Waddell, Inflection’s President and CEO,states: “The earlydesignation of Duck Creek as a Phase II Project enables the Company tofast-track Duck Creek with additional capital and drilling on multiplehigh priority target areas. Also, importantly, the Phase I regionalprogram will continue to test the portfolio of targets under theoriginal budgeted program. The excellent partnership with AngloGoldcontinues to develop and we look forward to getting the drills turningagain at Duck Creek”.
Phase II Duck Creek ExplorationProgram:
AngloGold has elected to designate the Company’s DuckCreek Exploration License as a Phase II Project as part of theExploration Agreement announced on June 14, 2023.
Phase I of the Exploration Agreement which is designedto drill test the portfolio of regional targets is ongoing and anamendment to the Exploration Agreement has been made to accommodatethe early election of a Phase II project. AngloGold still retains the right to designate fouradditional projects in addition to Duck Creek upon completion of PhaseI.
As part of Phase II at Duck Creek, AngloGold retainsthe right to earn an initial 51% interest in the project by investingAUD$7,000,000 in exploration expenditures (Figure 1). Uponcompletion of Phase II, AngloGold retains the additional right, aspart of a Phase III program, to earn up to a 65% interest by investinga further AUD $20,000,000 in expenditures. Upon completion of PhaseIII, AngloGold retains the right to earn up to a 75% interest bycompleting a pre-feasibility study with a minimum two-million-ouncegold or copper-gold equivalent resource (Measured & Indicatedcategory) and ceding a 2% or 1% net smelter return (“NSR”) royaltyto Inflection.
The Duck Creek Phase II exploration program willinitially comprise approximately eight deep holes testing a variety ofstep-out and geophysical targets announced on April 8, 2024. Thegeophysical targets are mostly located in thevicinity of earlier drilling which returned alteration, monzoniteintrusions and geochemistry typical to that seen near alkalicporphyry-related copper-gold mineralization. The Company anticipates starting this drilling in June whichInflection will operate for a 10% management fee.
AngloGold’s minimum expenditure commitment of AUD$6Munder the initial Phase I exploration program has now been reached,and AngloGold has informed the Company that it intends to complete thePhase I program.
Figure 1: Table outlining theprincipal financial terms of the AngloGold Exploration Agreement. PFS is Pre-Feasibility Study.
Exploration Licenses Incorporatedinto Phase I of the AngloGold Exploration Agreement:
Three additional exploration licenses, each comprisingmultiple target areas, have been incorporated into the ExplorationAgreement and are planned to be tested as part of the Phase Iexploration program. The Longstowe (EL 9622), Walgett (EL 9643) andMoonagee (EL 8730) projects all contain large drill targets identifiedby applying the knowledge learned from the ongoing Phase I drilling inconjunction with analysis of regional airborne geophysicaldatasets.
Longstowe: The recentlyacquired Longstowe Exploration License located north of the Macquarietarget covers several distinct magnetic highs interpreted to representpossible multiple intrusions at depth, where earlier drilling returnedhighly anomalous geochemistry and hydrothermal alteration typical ofthat found in proximity to alkalic porphyry systems.
Walgett : The recently acquiredWalgett Exploration License covers several large features of interestidentified in the airborne magnetics and regional gravity survey. These complex aeromagnetic and gravity features suggest intrusionsat depth, which may possibly extend the Macquarie Arc trend intoanother previously un-explored area of New South Wales.
Moonagee : The MoonageeExploration License covers a district magnetic high and was previouslyexcluded from the AngloGold Agreement. The ongoing interpretation ofthe Macquarie Arc has highlighted the Moonagee magnetic high as apriority target to be drill tested as part of the Phase Iprogram.
Figure 2: Map showing the locationof the Duck Creek, Longstowe, Walgett and Moonagee ExplorationLicenses.
Ongoing Phase I Drill Program:
The Company continues to drill test the portfolio oftargets as part of the Phase I exploration program and is currentlyscheduled to drill Canonba, Canonba North, Longstowe, Crooked Creek,Nyngan and Moonagee over the coming weeks.
AngloGold Exploration AgreementTerms:
The Phase I work programs noted above form part of theAngloGold Ashanti Exploration Alliance where AngloGold is sole funding up to AUD$10,000,000 on explorationexpenditures across a wide range of different intrusion-relatedexploration targets. Inflection is operating Phases I and II and isreceiving a 10% management fee for doing so. Phase II providesAngloGold the right to designate up to five individual projects whereit may potentially earn up to a 75% interest in each by completingvarious milestones. See Inflection news release dated June 14,2023 for further details.
Qualified Person and Sampling QualityControl:
The scientific and technical information contained inthis news release has been reviewed and approved by Mr. Carl Swensson(FAusIMM), a “Qualified Person” (“QP”) as defined in NationalInstrument 43-101 – Standards of Disclosure for MineralProjects.
Drilling is being conducted using a truck-mountedmulti-purpose drill rig. Mud rotary drilling is utilised to drillthrough the cover sequence before transitioning to diamond drillingusing NQ sized core at the unconformity. Core is logged at theCompany’s field office, photographed and marked before being cut tothe Company’s specified sample intervals. Half core samples areplaced in bags with internationally certified blanks and standardsinserted. Samples are dispatched to ALS Laboratories in Orange NSW,an accredited analytical laboratory meeting ISO/IEC 17025:2005 and ISO9001:2015. Samples are prepared by crushing and grinding via ALSmethods CRU-21 and PUL-32 respectively. The pulps are then assayedfor 48 elements via ALS method ME-MS61 using a 25g sample after a fouracid near total digest with an ICP-MS finish. Gold is assayed byfire assay using ALS method Au-AA23 using a 30g sample charge and AASfinish. Laboratory standards and QA-QC are monitored by the Company. Coarse rejects from the sample preparation are subjected to spectralanalysis.
About Inflection’s NSWProjects:
The Company is systematically exploring for large copper-gold deposits in the northern interpretedextension of the Macquarie Arc, part of the Lachlan Fold Belt in NewSouth Wales. The Macquarie Arc isAustralia’s premier porphyry copper-gold province host toNewmont’s Cadia deposits, Evolution Mining’s Cowal and Northparkesdeposits plus numerous exploration prospects including Boda, thediscovery made by Alkane Resources.
The Company uses cost-effective mud-rotary drilling tocut through unmineralized post-mineral sedimentary cover beforetransitioning to diamond core drilling once the prospective basementis reached. It is well documented that mineralized bodies elsewherein the belt, in particular porphyry and intrusive related systems havelarge district-scale alteration and geochemical halos or footprintssurrounding them. The Company typically completes a series of shortdiamond drill holes into the basement bedrock with multiple datapoints gained from alteration and mineral geochemistry which is thenused to vector additional deeper holes. Thisis a proven exploration methodology in the covered segments of theMacquarie Arc having been directly responsible for the discovery ofthe Northparkes and Cowal deposits.
About Inflection ResourcesLtd. Inflection is a technically drivencopper-gold focused mineral exploration company listed on the CanadianSecurities Exchange under the symbol “AUCU”, on the OTCQB underthe symbol “AUCUF” and on the Frankfurt Stock Exchange under thesymbol “5FJ”, with projects in New South Wales, Australia. For more information, please visit the Companywebsite at www.inflectionresources.com .
Inflection is part of the NewQuest Capital Group whichis an entrepreneurial, discovery-driven investment group that buildsvalue through the incubation and financing of early-stage mineralexploration projects globally. Further information about NewQuestcan be found at www.nqcapitalgroup.com
On behalf of the Board ofDirectors
Alistair Waddell
President and CEO
alistair@inflectionresources.com
For further information, pleasecontact:
Brennan Zerb
Investor Relations Manager
+1 (778) 867-5016
Forward-Looking Statements: This news release includes certainforward-looking statements and forward-looking information(collectively, "forward-looking statements") within themeaning of applicable Canadian securities legislation. All statements,other than statements of historical fact, included herein including,without limitation, statements regarding future capital expenditures,amount of drilling, receipt of the maximum amount of available grantfunding, anticipated content, commencement and cost of explorationprograms in respect of the Company's projects and mineral properties,AngloGold’s anticipated funding of the Minimum Commitment and timingthereof, and the anticipated business plans and timing of futureactivities of the Company, are forward-looking statements. Althoughthe Company believes that such statements are reasonable, it can giveno assurance that such expectations will prove to be correct. Often,but not always, forward looking information can be identified by wordssuch as "pro forma", "plans", "expects","may", "should", "budget","scheduled", "estimates", "forecasts","intends", "anticipates", "believes","potential" or variations of such words including negativevariations thereof, and phrases that refer to certain actions, eventsor results that may, could, would, might or will occur or be taken orachieved. Forward-looking statements involve known and unknown risks,uncertainties and other factors which may cause the actual results,performance or achievements of the Company to differ materially fromany future results, performance or achievements expressed or impliedby the forward-looking statements. Such risks and other factorsinclude, among others, statements as to the anticipated business plansand timing of future activities of the Company, including theCompany's exploration plans. the proposed expenditures for explorationwork thereon, the ability of the Company to obtain sufficientfinancing to fund its business activities and plans, delays inobtaining governmental and regulatory approvals (including of theCanadian Securities Exchange), permits or financing, changes in laws,regulations and policies affecting mining operations, the Company'slimited operating history, currency fluctuations, title disputes orclaims, environmental issues and liabilities, as well as those factorsdiscussed under the heading "Risk Factors" in the Company'sprospectus dated June 12, 2020 and other filings of the Company withthe Canadian Securities Authorities, copies of which can be foundunder the Company's profile on the SEDAR website at www.sedar.com . Readers are cautioned not to place undue reliance onforward-looking statements. The Company undertakes no obligation toupdate any of the forward-looking statements, except as otherwiserequired by law.
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