(TheNewswire)
Vancouver, B.C. – TheNewswire - February 3, 2021 - Crest ResourcesInc. (“Crest” or the “Company”) (CSE: CRES) announces that ithas entered into an Option Agreement dated February 2, 2021 (the“Option Agreement”) with UrbanGold Minerals Inc. (TSXV: UGM) (UrbanGold”) to acquire certain miningclaims located in NTS 32B05 and 32B12, approximately 160 kilometresnortheast of the Town of Val d’Or, in the Province of Quebec (the“Claims”).
Pursuant to the terms of the Option Agreement, Crest shall have theright until the third anniversary of the Option Agreement to acquire100% of UrbanGold’s interest in the Claims by:
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(a) making a total cash payment of $25,000 toUrbanGold on the Closing Date (as defined in the Option Agreement);
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(b) issuing common shares in the capital stock ofthe Company (the “Option Shares”) as follows:
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(i) 400,000 Option Shares to UrbanGold on theClosing Date;
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(ii) 400,000 Option Shares to UrbanGold withinone year of the Closing Date;
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(iii) 400,000 Option Shares to UrbanGold withintwo years of the Closing Date;
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(iv) 1,250,000 Option Shares to UrbanGold withinthree years of the Closing Date.
A portion of the claims is subject to a 1% royalty. Upon completion ofthe Option, UrbanGold will transfer a 100% stake in the Claims toCrest. At that time, Crest will grant a royalty to Urbangold equal to1% of the net smelter returns on the Claims that are not subject tothe existing royalty.
The StarGold property consists of 234 mineral claims totalling13345.69 ha and is located in Bongar and Logan Townships;approximately 112 km east of Senneterre, Quebec (200 km ENE ofVal-d’Or) and is accessible via logging road. Lake Ouiscatisprovides boat access to almost everywhere on the property.
The Stargold Project is host the namesake Stargold Boulder discovery,a large (> 1 m) angular siliceous boulder bearing massive tosemi-massive gold-bearing sulphides that was reported to have assayedup 279 g/t Au in grab samples (Castle Rock Exploration April 20th,1998 News Release). This boulder was found in a ditch along thelogging road that runs along the Megiscane River. It was discoveredby Norcal Resources Ltd. in late October 1997. In 2019airborne Electromagnetic geophysics and ground prospecting workby Urbangold defined a series of targets for testing the possiblesource of the boulder.
STARGOLD PROPERTY GEOLOGY
As described by Norcal Resources in 1997 (GM 56950, Section 7.1,Regional Geology), the Grenville Front lies immediately east of apost-metamorphic north-northeast-trending fault coincident with theSerpent River. The Grenville Front is a diffuse metamorphic boundary,not a fault. The Stargold property is located east of the SerpentRiver Fault and is therefore located within Grenville Province (Figure10, Regional Geology Map). The underlying rocks consist ofvolcano-sedimentary, komatiitic and banded iron formation horizonsmetamorphosed to middle amphibolite facies gneisses.
DEPOSIT TYPES
Three types of mineralization are expected on the StarGold property:
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-- Gold-rich volcanogenic massive sulphide(gold-rich VMS) deposits, similar to the recently-closed Bousquet #2and IAMGold’s LaRonde mines)
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-- Volcanogenic massive sulphide deposits (VMS),analogous to Teck’s Louvicourt mine, which ceased operations in2005
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-- Gold-rich polymetallic veins, similar to theDoyon and Mouska gold mines
Nick Rodway, P.Geo, is an officer of the Company, shareholder andqualified person as defined by National Instrument 43-101. Mr. Rodwaysupervised the preparation of the technical information in this newsrelease.
About Crest Resources Inc.
Crest Resources Inc. is a British Columbia companylisted on the Canadian Securities Exchange under the symbol CRES. TheCompany’s principal business activity is the acquisition,exploration and evaluation of mineral property assets in Canada,Australia and Peru and the investment in mineral exploration companiesand related mining technologies of merit. The Company’s Canadianmineral property assets include various land and corporate ownershippositions within the Exploits Subzone, the newest emergingdistrict-scale gold exploration and mining district in the province ofNewfoundland and Labrador.
About UrbanGold
UrbanGold Minerals Inc. is a precious metalsexploration company with its activities focused on the Troilus-Frotetgold belt, Quebec. The Company specializes in project generationsupported by substantial exploration expertise. The Company's commonshares trade on the TSX Venture Exchange under the symbol"UGM".
FOR FURTHER INFORMATIONCONTACT:
Michael Collins
President and CEO
Crest Resources Inc.
Telephone: 604-681-3170
Neither the Canadian SecuritiesExchange nor its Regulation Service Provider (as the term is definedin the policies of the Canadian Securities Exchange) acceptsresponsibility for the adequacy of accuracy of this newsrelease.
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