(TheNewswire)
Vancouver, BC - TheNewswire - September 29, 2020 -Royal Gold Mining Inc. - (TSXV:ROYL) The Company reports that it has acquired an option toacquire up to a 70-per-cent interest in the advanced-stage BellechasseTimmins gold property located in the Beauce region of southern Quebecfrom Yorkton Ventures Inc. (the "Optionor"), an arms' lengthparty.
Terms of the Option
In order to acquire a 35-per-centinterest in the property, the Company will:
-
- Make a $250,000 cash payment prior toOctober 2, 2020 to the Optionor;
- Issue a $100,000 2 year 10%Promissory Note to the Optionor;
- Issue 1 million shares of the Companyto the Optionor;
- Incur $200,000 of PropertyExpenditures within 12 months
In order to acquire an additional 35%resulting in a 70% interest, the Company shall make a cash payment tothe Optionor of $350,000 on or before April 15, 2021 and expend$250,000 in work expenditures prior to September 30, 2023. At thatpoint a joint venture partnership will be formed where each party willcontribute their share of the project expenditures and costs or willbe diluted down accordingly. The Agreement is subject to regulatoryapproval.
The Optionor will initially be operator of the Bellechasse-Timmins property and budgets must beapproved by the Optionor. All technical components will be approved bya technical committee comprising of two nominees of the Optionor andtwo nominees of the Company.
PROJECT SUMMARY
The Bellechasse Timmins("B-T") project, consists of 138 claims located in theMunicipalite regionale de Comte des Etchemins, approximately 80kilometres southeast of Quebec City. The property is about 53km 2 and covers 15km of favorablestratigraphy.
The project area has a well-developedand fully integrated infrastructure including an excellent network of well-maintained all-weather roads, three-phase hydroelectrictransmission lines, water sources, schools, clinics and hospitals.There are grocery and hardware stores with major national chainoutlets locally. This makes it ideally suited for mining explorationand development with no major logistical impediments or high-costconditions and exploration work may be executed year round.
The Bellechasse-Timmins Gold Depositcontains a historical 2012 SGS mineral resource of 171,000 ounces (2.9million tonnes grading 1.83 g/t) of gold in the indicated category andan additional 95,000 ounces (2.17 million tonnes grading 1.36 g/tgold) in the inferred category using a lower cutoff of 0.6g/t and acapping grade of 30g/t. The same resource with uncapped results in anindicated resource of 313,900 ounces of gold (2.9 million tonnesgrading 3.36 g/t Au) and inferred resource of 102,000 ounces of gold(2.17 million tonnes grading 1.46 g/t Au). Please refer to this SEDARlink https://www.sedar.com/DisplayCompanyDocuments.do?lang=EN&issuerNo=00003913 for a copy of the 2012 report labelledtechnical report.
The B-T Deposit is a partially definedconcentration of native gold and gold-sulfide mineralization localizedby intricately folded and sheared diorite body. Gold is present inwidely ranging values - high grade values are frequently confined tolinear zones defined by quartz veins and shears and lower grade valuesare quite pervasive in many parts of the diorite complex seeminglyirrespective of quartz or sulfide associations. Indications from the historical work to date suggeststhe combined high and low grade mineralization may achieve aneconomically viable balance.
The deposit is comprised of 4 knownzones: T1 (Timmins), T2 (Timmins South), Ascot, 88 Zones. The 2012 SGSresource only included the T1 zone to a vertical depth of 300 metersand the T2 zone to 350 meters. Both zones have been drilled to depthsof 450 meters and 400 meters respectively with seemingly littlecharacter change to the mineralizing controls. Data to date suggestthe diorite complex will continue to depth.
In 2012, preliminary metallurgicaltesting provided excellent gold recoveries with an average of 77%being simply gravity recoverable. Gold recovery using gravityseparation ranged from 54% to an outstanding 92%, while total goldrecovery ranged from 97% to more than 99% with added cyanidation. Thetest work was completed on 23 composite samples from the drill core.The selected composite samples were from from different mineralizedintersections at various depths with variable grades from drill corethat tested the T1 and T2 zones. The test work produced a total goldmetallurgical balance that shows calculated feed grade, tailing lossesand overall gold recovery data. The main gold mineral is native gold(native Au-Ag alloy, with Au >75%, Ag <25%). Semi-quantitativeanalysis on 2 select samples resulted in the gold grains yields of86.8% Au and 10.8% Ag, and 88.4% Au and 9.5% Ag in the second sample.The results are supported by a high frequency of visible gold throughthe drill core. Additionally, the associated sulfides primarilyconsisting of pyrite, pyrrhotite, arsenopyrite, galena and sphaleriteare typically less than 3%.
The surface quasi bulk sampling andtrenching completed on the T1, T2 and 88 zones in 2006 through to 2012suggest the drilling grades may be understated by as much as 50%however more extensive testing is required.
Another priority target is thehistorically non-compliant partially defined Champagne VMS Depositwhich is typical of the deposit class worldwide. The non-compliantdrilled resource of 290,000 tons graded 2.1g/t gold, 18.5g/t silver,0.40% copper, 2.68% zinc and 0.45% lead. The deposit is open in alldirections with immediate promise at depth and strike as witnessed bygeological-geochemical-geophysical anomalies. A VTEM (helicopter-bornetime-domain electromagnetic) survey was flown over the area inDecember 2011. The VTEM survey results suggest that there are asignificant number of high priority targets that require drilltesting.
Royal management believes furtherexploration on the Bellechasse-Timmins property, is warranted and thepotential to upgrade the historical mineral resource is very goodalong strike and to depth. Further it believes that the potential fornew discoveries is high with defined targets yet to be investigated.
The recently completed 43-101 summaryreport by Christian Derosier, on SEDAR, recommends an initialtwo-phase program focused onthe Bellechasse-Timmins Deposit for 2020-2021.
The first phase will comprise ofrelogging the drill core with a focus on characterizing themineralization including the quartz, quartz-carbonate-chlorite veinsand veinlets associated sulphides and alterations as it relates to theresource and broader exploration potential for the project.
Additionally, a resampling programconsisting of B-T coarse rejects and drill core will be undertaken asthe Company believes the original fire assay gold values have beenunderstated due to the nugget effect. More detailed and completeanalytical procedures will be investigated in order to try to achievethe truer grade for the sampled intervals.
Upon completion of phase 1 a resourceupdate will be undertaken.
The Phase 2 program will consist of atleast 2,000 meters of HQ diamond drilling integrated with a moreoptimized protocols. A resource upgrade will be completed afterwardsintegrating the additional data.
The above will be a preamble forfurther bulk sampling and more metallurgical testing to be undertakenwill the goal of completing a Preliminary Economic Assessment(PEA).
The Company looks forward to beginningthe Phase 1 work shortly and will report results as they becomeavailable.
Dr. Christian Derosier, P.Geo., D.Sc.,is the qualified person (QP) as defined in National Instrument 43-101and, acting on behalf of Royal Gold Mining Inc. and Yorkton VenturesInc, has reviewed and approved the technical content of this newsrelease.
For more information please visit www.sedar.com or contact:
Glen Macdonald, P.Geo., CEO
Royal Gold Mining Inc.
Telephone: (604) 719-8129
E-mail: geoglen@shaw.ca
Neither the TSXVenture Exchange nor it Regulation Services Provider (as that term isdefined in the policies of the TSX Venture Exchange) acceptsresponsibility for the adequacy or accuracy of this release.
CautionaryStatements
Certain statements contained in this press release constituteforward-looking information. These statements relate to future eventsor future performance. The use of any of the words "could","intend", "expect", "believe","will", "projected", "estimated" andsimilar expressions and statements relating to matters that are nothistorical facts are intended to identify forward-looking informationand are based on the Company's current belief or assumptions as to theoutcome and timing of such future events. Actual future results maydiffer materially. In particular, this release containsforward-looking information. Various assumptions or factors aretypically applied in drawing conclusions or making the forecasts orprojections set out in forward-looking information. Those assumptionsand factors are based on information currently available to theCompany. Risk factors that could cause actual results or outcomes todiffer materially from the results expressed or implied byforward-looking information include, among other things: conditionsimposed by the TSX Venture Exchange; changes in tax laws, generaleconomic and business conditions; and changes in the regulatoryregulation. The Company cautions the reader that the above list ofrisk factors is not exhaustive. The forward-looking informationcontained in this release is made as of the date hereof and theCompany is not obligated to update or revise any forward-lookinginformation, whether as a result of new information, future events orotherwise, except as required by applicable securities laws. Becauseof the risks, uncertainties and assumptions contained herein,investors should not place undue reliance on forward-lookinginformation. The foregoing statements expressly qualify anyforward-looking information contained herein.
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