TSX.V: COCO
VANCOUVER, BC, Sept. 3,
2024 /CNW/ - Coast Copper Corp. ("Coast Copper" or
the "Company"); (TSXV: COCO) is pleased to announce that
it has acquired the Sweeney property ("Sweeney" or
"Property"), consisting of two separate transactions. Coast
Copper has acquired 8 mineral claims totaling 1,492 hectares
("ha") from Cazador Resources Ltd. ("Cazador"), a
private company controlled by Coast Copper's CEO Adam Travis ("Cazador Claims"), and 2
mineral claims totaling 57 ha from arm's-length third party
("Third Party") ("Third Party Claims"). Details of
the acquisitions are noted below. The Property is located
approximately 135 kilometers ("km") by road, southwest of
the town of Houston in the Central
Interior of British Columbia. The
Property is centrally located in the Huckleberry Mine Camp and is 7
km north northwest of the past producing Huckleberry Mine, 3 km
west of Huckleberry Mines Ltd.'s Whiting Creek deposit and 8 km
southeast of the Berg Deposit owned by Surge Copper Corp¹. See
Figure 1.
Highlights of the Property
- Road accessible and close to existing infrastructure in the
heart of the Huckleberry Camp.
- Multiple vein and structural trends at 345-degree azimuth
identified over a 1 km trend of high-grade silver ("Ag"),
lead ("Pb"), zinc ("Zn") +/- gold ("Au") up to
3 meter ("m") wide quartz sulphide veins.
- Historical underground development on the Emerald Vein took
place on four levels (6400, 6275, 6000 and 5400 levels) and the
mine operated intermittently from 1951 to 1968, producing 83,493
ounces ("oz") Ag, 49 oz Au, 1,966,396 pounds ("lbs")
of Zn, 1,689,449 lbs of Pb, 19,872 lbs of copper ("Cu") and
3,713 lbs of cadmium from the milling of 8,293 tonnes of ore ²
³.
- Unclassified reserves on the Emerald Vein are 40,800 tonnes
grading 355 grams per tonne ("g/t") Ag, 8.23% Pb, 9.49% Zn
and 1.13 g/t Au ² ³ with ore zones noted open to depth and not
tested by the 2012 drilling noted below.
- No drilling or underground exploration work was completed on
the Property between 1971-2012, until a 2012 diamond drill program
focused on the Miya Vein (cross cuts the Emerald Vein trend at 300
degrees) and consisted of 30 drillholes with an average depth of
52 m, covering over 350 m of strike length and returning gold values
up to 7 g/t Au with high-grade silver, lead and zinc over
1-5 m intervals.
- Outside of historical (and now reverted) crown grants,
exploration has been very limited due to glacier and ice cover in
the areas to the north and northwest of the historical work, which
are now exposed and show significant alteration and some new
discoveries around previously ice-covered edges (pre-2013).
Fletcher Morgan, Chairman
comments: "I'm very pleased that we were able to acquire the
prospective and strategically located Sweeney property for
consideration amounting to the vendors' costs. Mr. Travis is
continuing to fulfil the Company's goal of having a strategic
mineral property acquisition program, as stated in the Company's
May 16, 2024 news release. Coast
Copper continues to accumulate prospective properties, positioning
itself for a market turn in the junior mining space."
Purchase Agreement Terms
Cazador Purchase Agreement Terms
Under the terms of the Cazador purchase agreement ("Cazador
Purchase Agreement"), in consideration for a 100% interest in
the Property, Coast Copper will make a cash payment of $60,000 to Cazador, which will retain a 1% net
smelter return ("NSR") royalty on the Cazador Claims, 0.5%
of which may be purchased by Coast Copper for $2 million.
The Company's independent directors completed a review of the
Cazador Claims prior to entering into the Cazador Purchase
Agreement and agreed to cover Cazador's acquisition costs and
initial reconnaissance program, and for Cazador to retain an NSR.
This transaction is considered a related party transaction
within the meaning of Multilateral Instrument 61-101 --
Protection of Minority Security Holders in Special
Transactions as the Cazador Claims are being sold to the
Company by a director and officer. The transaction is exempt from
the formal valuation and minority approval requirements in MI
61-101 as the fair market value of the consideration payable does
not exceed 25% of the Company's market capitalization.
Third Party Purchase Agreement Terms
Under the terms of the Third-Party purchase agreement, in
consideration for a 100% interest in the Third Party Claims, Coast
Copper will make a cash payment of $134 to the Third Party, who will retain a 1% NSR
royalty on the Third Party Claims, 0.5% of which may be purchased
by Coast Copper for $1 million.
One mineral claim purchased is not adjacent to the Property.
Both purchase agreements are subject to TSX Venture Exchange
approval.
Qualified Persons
The technical information contained in this news release has
been prepared, reviewed, and approved by Wade Barnes, P.Geo. (BC), Coast Copper's
geological consultant and a Qualified Person within the context of
the Canadian Securities Administrators' NI 43-101; Standards of
Disclosure for Mineral Projects.
About Coast Copper Corp.
Coast Copper's exploration focus is the Empire Mine property,
located on northern Vancouver Island, BC, which covers three
historical open pit mines and two past-producing underground mines
that yielded iron, copper, gold, and silver. Coast Copper's other
properties include its 100% owned Sully property located in
southeastern BC, Knob Hill NW property located on northern
Vancouver Island, its Home Brew property in central BC, and its
Scottie West property located in the
"Golden Triangle" of northern BC. Coast Copper's management team
continues to review precious and base metals opportunities in
western North America.
On Behalf of the Board of Directors:
"Fletcher
Morgan"
Fletcher Morgan,
Chair
NR24-08
Cautionary Notes related to News Release/Maps
¹ This
news release may contain information about adjacent properties on
which Coast Copper has no right to explore or mine. Investors are
cautioned that mineral deposits on adjacent properties are not
indicative of mineral deposits on the Company's properties.
² BC Minfile Record Summary 093E 001
https://minfile.gov.bc.ca/Summary.aspx?minfilno=093E++001
³ Historical information provided cannot be relied upon as the
Company's QP as defined under NI 43-101 has not prepared nor
verified the historical information. The stated resource is not NI
43-101 compliant and a Qualified Person has not done sufficient
work as per NI 43-101 to classify the historical estimate as
a current mineral resource and Coast Copper Corp. is not treating
this historical estimate as current mineral resources.
⁴ Surge Copper Corp website and Imperial Metals website
⁵ 2012 Technical Assessment Report for the Miya Property,
Lowprofile Ventures Ltd. BC Assessment Report 34241
Neither the TSX Venture Exchange nor its Regulation
Services Provider (as that term is defined in the policies of the
TSX Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING
INFORMATION
Certain information contained or incorporated by reference in
this press release, including any information regarding the
proposed Transaction, private placement, board and management
changes, as to our strategy, projects, plans or
future financial or operating performance, constitutes
"forward-looking statements." All statements, other than statements
of historical fact, are to be considered forward-looking
statements. Forward-looking statements are necessarily based on a
number of estimates and assumptions that, while considered
reasonable by Coast Copper, are inherently subject to significant
business, economic, geological and competitive uncertainties and
contingencies. Although Coast Copper believes the expectations
expressed in such forward-looking statements are based on
reasonable assumptions, such statements are not a guarantee of
future performance. Known and unknown factors could cause actual
results to differ materially from those projected in the
forward-looking statements. Such factors include but are not
limited to: fluctuations in market prices, exploration and
exploitation successes, continued availability of capital and
financing, changes in national and local government legislation,
taxation, controls, regulations, expropriation or nationalization
of property and general political, economic, market or business
conditions. Many of these uncertainties and contingencies can
affect our actual results and could cause actual results to differ
materially from those expressed or implied in any forward-looking
statements made by, or on behalf of, us. Readers are cautioned that
forward-looking statements are not guarantees of future performance
and, therefore, readers are advised to rely on their own evaluation
of such uncertainties. All of the forward-looking statements made
in this press release, or incorporated by reference, are qualified
by these cautionary statements. We do not assume any obligation to
update any forward-looking statements.
SOURCE Coast Copper Corp.