VANCOUVER, British Columbia,
Jan. 14, 2021 /CNW/
-- St. James Gold Corp. (TSX – V: LORD) (OTC: LRDJF),
the "Company" is pleased to announce that it has secured the sole
and exclusive option to acquire a 100% interest in the Quinn Lake
Claims comprising two contiguous map-staked mineral licenses, for a
landholding of 1,730 acres (the "Property") in the emerging
prolific central Newfoundland
island gold district. Entered into at arm's length, the Property is
adjacent to Marathon Gold.'s Valentine
Lake property where over 4 million ounces of gold have been
developed to pre-feasibility, and situated 17 km northeast from the
Marathon gold deposit and along strike of the main gold bearing
structure in the district, the Valentine Shear Zone. The Property
is accessible by a network of well-maintained seasonal gravel
resource roads originating at Millertown approximately 35 km to the
north.
The Property is located with the Exploits Subzone of the Dunnage
tectonostratigraphic zone and is underlain by rocks of the Victoria
Lake supergroup, a structurally complex, composite collage of
bimodal Neoproterozoic to Ordovician arc-related magmatic and
sedimentary rocks. This structurally controlled gold district in
central Newfoundland is emerging
as a major area of gold endowment, and occurs within
a northeast-trending corridor defined by crustal-scale faults.
Known as the Rogerson Lake Conglomerate, the presence of Silurian
syn-orogenic polymict reflects the preservation of syn-orogenic
upper crustal clastic sequences commonly associated with orogenic
gold vein systems. Gold deposits and other gold occurrences in the
district show that mineralization can be hosted with volcanic and
epiclastic rocks that are in fault contact with the Rogerson Lake
Conglomerate. This setting is very likely the most prospective
target at the Quinn Lake property.
To the southwest of the Property, the Rogerson Lake corridor
hosts Marathon Gold's Valentine Lake
project where gold mineralization has been traced over a distance
of 18 km and host to several deposits, while along to the northeast
at Wilding Lake, gold mineralization is also hosted by
quartz-tourmaline veins associated with shearing along a thrust
fault within the Rogerson Lake conglomerate. Situated between these
two projects, the local geology is inferred from geophysical
surveys and adjacent projects, and indicates the presence of the
Valentine Lake Shear Zone and Rogerson Lake Conglomerate which are
spatially related and define the corridor favourable for gold
mineralization.
As commented by George
Drazenovic, CEO of St. James Gold Corp., "We are excited
to build on our recent Grub Line option agreement and expand our
portfolio of exploration gold assets in Newfoundland. While
there has been considerable past exploration for volcanogenic base
metal mineralization surrounding the Rogerson Lake corridor, until
recently, the Conglomerate has not seen significant exploration for
gold. In the past month alone, Marathon Gold announced drill
results of the Berry Zone and Narrows prospect situated southwest
of our property along this structural corridor, while northeast of
our property and on strike with Marathon Gold's Valentine Lake project, Canterra Minerals just
announced a planned $2.75 m. work
exploration program at their Wilding Lake gold project. We will
continue to monitor activity in this rapidly emerging gold region,
further develop the geological model, and put together a work
program that will ultimately target enhanced value for our
shareholders."
Despite the emergence of recent discoveries along the
gold-bearing corridor related to the Valentine Lake Shear Zone and
Rogerson Lake Conglomerate, and geological mapping surveys
conducted by the Geological Survey of Newfoundland and Labrador, little work on the Property has been
conducted to date. In 1989, one of Noranda's till sampling lines
crossed the Property area and reported anomalous values up to 528
ppb gold, while a 2013 review by Paragon Minerals of existing
airborne electromagnetic-magnetic survey data, prospecting and
ground IP geophysical survey recommended more geophysical work
focusing on the Rogerson Lake Conglomerate contacts.
As stated by George Drazenovic,
"Recent exploration by others on the surrounding areas where
boulder trains with gold mineralization were traced to bedrock
sources have led to significant gold discoveries. However, past
soil and stream sediment sampling efforts on the Property were
limited and focused on surficial materials that were not
representative of underlying bedrock, and geophysical targets, in
spite of showing some promise, have not been tested by drilling.
Overall, past efforts lacked continuity and the budgets to best
reflect the risk-reward scenarios for this strategically situated
area, largely due to the fact that most discoveries along this
corridor have only materialized recently. We intend to pursue a
program that will test for these theories and unlock value for our
shareholders."
Subject to exchange approval, and pursuant to the terms of the
option agreement, total aggregate consideration payable by the
Company is an aggregate of $65,000
cash over three years, exploration totalling not less than
$100,000 over three years, and the
issuance of an aggregate of 300,000 common shares of the company as
follows:
- 75,000 common shares on the approval of the option agreement by
the TSX Venture Exchange;
- 75,000 common shares on the first anniversary of exchange
approval;
- 75,000 common shares on the second anniversary of exchange
approval;
- 75,000 common shares on the third anniversary of exchange
approval.
The vendors will retain a royalty of 2-per-cent net smelter
returns on production from the Grub Line claims with one half of
the total royalty purchasable for $1,000,000 pre-production. Additionally, the
Company will be required to issue an additional 500,000 common
shares to the vendors if at any time before or after exercise of
the option the company obtains a National Instrument 43-101 report
estimating an inferred mineral resource of not less than 100,000
ounces of gold.
A technical report for the Quinn Lake claims is being prepared
in connection with the acquisition and in accordance with National
Instrument 43-101 – Standards of Disclosure for Mineral
Projects and the policies of the Exchange.
Historic information on the Quinn Lake claims, notably in regard
to historical exploration, adjacent companies and recent
discoveries, and governmental geological compilations provide an
indication of the exploration potential of the project, but may not
be representative of expected results.
Dr. Stewart Jackson, P.Geo.,
Senior Technical Advisor Geologist and Qualified Person within the
meaning of National Instrument 43-101 Standards of Disclosure for
Minerals Projects, has reviewed and approved the technical and
scientific information presented herein as accurate and approved
this news release.
About St. James Gold Corp.
St. James Gold Corp. is a publicly traded company listed on the
TSX Venture Exchange focused on creating shareholder value through
the discovery and development of economic mineral deposits by
acquiring prospective exploration projects with well delineated
geological theories, integrating all available geological,
geochemical and geophysical datasets, and funding
efficient exploration programs. The Company
currently holds an option to acquire a 100% interest in 29
claims covering 1,791 acres in the Gander gold district in
north-central Newfoundland
adjacent to New Found Gold Corp.'s Queensway North
project.
George Drazenovic, CPA, CGA, MBA,
CFA
CEO
St. James Gold Corp.
For further information, please contact:
George Drazenovic, Chief Executive
Officer
Tel: 1 (800) 278-2152
Email: info@stjamesgold.com
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.
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SOURCE St. James Gold Corp.