TSX-V: KTO
VANCOUVER, BC, July 23, 2020 /CNW/ - K2 Gold Corporation
("K2" or the "Company") (TSX-V: KTO) (OTCQB: KTGDF)
(FRANKFURT: 23K) is pleased to report positive additional
exploration results from the its Mojave gold project ("Mojave") located in
Inyo County, Southern
California.
The Company also announces that it is accelerating the
expiry date of the common share purchase warrants (the "Warrants")
issued by the Company pursuant to the previously announced private
placement that closed on August 27,
2019.
Mojave Exploration Update
Please CLICK HERE to view all figures related to this news
release.
Dragonfly
A total of 24 samples were collected on the Dragonfly and
results ranged from 0.02 – 19.8 g/t Au with 10 samples returning
>1 g/t Au and 4 samples returning >10 g/t Au. The
sampling indicated that the high-grade mineralization is focused
along a series of NW-SE trending, SW dipping, extensional zones up
to 10m in width. These occur
between NNW trending, west dipping, sinistral strike-slip faults
which are the focus of higher-grade mineralization. The
mineralization is associated with an overlapping assemblage of
silicification and sericite-clay alteration, multiple generations
of stockwork quartz and quartz-carbonate veining. In addition
the rocks have undergone intense iron-oxide alteration within a
sequence of conglomerate, limestone, and siltstone.
Dragonfly was discovered by BHP and hosts some of the strongest
oxide gold mineralization reported on the property to date,
including historic chip results of 4.2 g/t Au over 42.67m, rock samples up to 22.53 g/t Au, and
significant historic drilling intercepts including 1.54 g/t Au over
24.38m, starting at surface, and 3.84
g/t over 12.19m, starting at
42.19m depth, from CM97-4.
Gold Valley
Prospecting was also completed on the Gold Valley target located
750 metres NW of Dragonfly. This gold target has less than
10% rock outcrop and is primarily defined by a strong soil anomaly.
Soil sample results range from trace to 385 ppb Au, with 8
samples returning >100 ppb Au in colluvium (see Company
news release dated June 1, 2020,
available on SEDAR). Isolated ridges of silicified limestone
and conglomerate with stockwork quartz-carbonate veining and
localised iron-oxide mineralization occur in the area and are
associated with NW oriented structural zones. One rock sample
of the altered material returned 0.17 g/t Au. The ridges
occur within a broad area of colluvium and are hosted within a
400m wide structural zone that is
interpreted to be parallel to the Dragonfly structural zone which
is of similar width, based on this prospecting program and
re-interpretation of recent WorldView-3 data. There is
potential for additional zones of alteration/mineralization beneath
shallow cover on the target and will be assessed in future
programs.
The Gold Valley consists of a 700m
x 650m gold in soil anomaly that
occurs along a NNW extension of the structural trend that hosts the
Dragonfly zone. Dragonfly and Gold Valley are separated by
colluvial cover that potentially masks the geochemical response in
this area. It is interpreted that the two targets are
connected beneath cover and would form a 2.3km trend of alteration
and anomalous gold mineralization.
Acceleration of Warrant Expiry Date
K2 is accelerating the expiry date of the Warrants issued by the
Company pursuant to the previously announced private placement that
closed on August 27, 2019.
Under the terms of the form of Warrant, the Company is permitted
to accelerate the expiry date if the common shares of the Company
have traded on a stock exchange at a volume weighted average price
of $0.50 or higher for a period of 10
consecutive trading days (the "Acceleration Event"). The
Company is pleased to confirm that an Acceleration Event occurred
as of July 23, 2020.
Accordingly, the Company has chosen to accelerate the expiry
date of the Warrants to August 22,
2020.
Holders of the Warrants now have until 4:00 p.m. (Vancouver time) on August 22, 2020 to exercise the Warrants in
accordance with their terms. If not exercised by such time
and date, the Warrants will expire.
Qualified Person
Jodie Gibson, Vice President of
Exploration and a Qualified Person under National Instrument
43-101, has reviewed and approved the technical information in this
release.
About K2
K2 is a well-financed gold and silver exploration company with
projects in SW USA, Yukon and Alaska. The Company is focused on
Mojave, a 5,830 hectare oxide gold
project located in southern California. The geographic location of
Mojave enables the Company to have
year-round news flow on multiple surface gold targets that have
been successfully drilled in the past by majors BHP and Newmont.
Silver and base metals were mined on the western side of the
property around the turn of the last century. Besides
affording immediate drill targets based on the Company's recent
rock and soil sampling, the property also has high priority
undrilled locations in the vicinity of historical trench results
such as 4.2 g/t gold over 42.7m.
On behalf of the Board of Directors,
"Stephen Swatton"
President and CEO
K2 Gold Corporation.
K2 Gold Corporation is a proud member of Discovery Group.
For more information please visit: www.discoverygroup.ca.
Cautionary Statement on Forward-Looking Statements
This news release contains forward-looking statements that are
not historical facts. Forward-looking statements involve
risks, uncertainties and other factors that could cause actual
results, performance, prospects and opportunities to differ
materially from those expressed or implied by such forward-looking
statements, including statements regarding the exploration program
at Mojave, including results of
drilling, and future exploration plans at Mojave. Factors that could cause actual
results to differ materially from these forward-looking statements
include, but are not limited to, variations in the nature, quality
and quantity of any mineral deposits that may be located, the
Company's inability to obtain any necessary permits, consents or
authorizations required for its planned activities, and the
Company's inability to raise the necessary capital or to be fully
able to implement its business strategies. The reader is referred
to the Company's public disclosure record which is available on
SEDAR (www.sedar.com). Although the Company believes that the
assumptions and factors used in preparing the forward-looking
statements are reasonable, undue reliance should not be placed on
these statements, which only apply as of the date of this news
release, and no assurance can be given that such events will occur
in the disclosed time frames or at all. Except as required by
securities laws and the policies of the TSX Venture Exchange, the
Company disclaims any intention or obligation to update or revise
any forward-looking statement, whether as a result of new
information, future events or otherwise.
This news release does not constitute an offer to sell or a
solicitation of an offer to buy, nor shall there be any sale of any
of the securities in any jurisdiction in which such offer,
solicitation or sale would be unlawful, including any of the
securities in the United States of
America. No securities of the Company have been or will, in
the foreseeable future, be registered under the United States
Securities Act of 1933 (the "1933 Act") or any state securities
laws and may not be offered or sold within the United States or to, or for account or
benefit of, U.S. Persons (as defined in Regulation S under the 1933
Act) unless registered under the 1933 Act and applicable state
securities laws, or an exemption from such registration
requirements is available.
NEITHER TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES
PROVIDER (AS THAT TERM IS DEFINED IN POLICIES OF THE TSX VENTURE
EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF
THIS RELEASE.
SOURCE K2 Gold Corporation