CRES to Sell Middle Ridge South Gold Property in Central Newfoundland
CREST RESOURCES INC.
S u i t e 11 00 - 5 95 H o w e S t re e t , V a n c o u v e r , B C V6 C 2 T 5
T ( 6 0 4) 6 8 1- 3 1 7 0, F ( 6 0 4 ) 681 -3552
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NEWS RELEASE
Crest Resources to Sell the Middle Ridge South Gold Property in Central
Newfoundland
Vancouver, B.C. – July 9, 2020 – Crest Resources Inc. (“Crest” or the “Company”) (CSE: CRES) is pleased
to announce that the Company and its co -vendors (together, the “Vendors”) have entered into an
agreement (the “Agreement”) with Mariner Resources Corp. (“Mariner”) to sell Mariner a 100% undivided
interest, subject to retained royalty, in the Middle Ridge South gold property (the “ Property”). The
Property is located in central Newfoundland and Labrador and consists of 558 mineral claims covering
approximately 139.50 km² (13,950 Ha). The Property is accessible by traveling South from the town of
Bishop’s Falls on the Bay d’Espoir Highway for 75 km where the highway transects the Property.
Transaction Outlined
Under the terms of the Agreement, Mariner will acquire a 100% interest in the Property for consideration
of $240,000 cash payable upon signing the Agreement and 1,800,000 common shares of Mariner due
upon clos e of the transaction to take place within 10 business days of receipt of Canadian Securities
Exchange approval. The Vendors will retain a 2.0% net smelter returns royalty on the Property of which
Mariner can purchase 1.0% for $1,000,000 at any time. The Vendors’ interest in the Property is currently
held 85% by the Company, 5% by Volatus Capital Corp. and 10% by Nicholas Rodway, an officer of the
Company.
Crest president Michael Collins comments, “Crest has seized the opportunity to secure gold projects in
Newfoundland ahead of the competitors and we are pleased to be partnered with Mariner to explore the
Middle Ridge South Project. W e believe th at our extensive staking and acquisition of projects in the
Exploits Subzone will generate significant returns for our shareholders in the months ahead as the scale
and breadth of discovery in the Exploits Subzone is understood by the market.”
Middle Ridge South Gold Property
The Property straddles 40 km of the southernmost end of the Gander River Ultra Mafic Belt (GRUB), along
the offset portion of the regional structure, which is thought to be very important in the mobilization and
concentration of gold mineralization in the area. The Property is 82 km southwest of the late 2019 New
Found Gold Corp. gold discovery, which returned a diamond drill hole with 92.86 g/t Au over 19.0 metres
near surface (see New Found Gold Corp. news release dated January 28, 2020).
Property Highlights
• The Mid dle Ridge South project encompasses 40 km of the GRUB line offset, which is the
easternmost bounding structure of the Exploits Subzone ( a geological subzone formed as a
result of the closing of the Iapetus Ocean).
• The GRUB regional thrust fault offset stru cture is a conduit and a focus of deep mantle fluids
which is believed to be spatially associated with significant gold mineralization in the region.
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• Gold deposition in the Exploits Subzone is found in secondary and tertiary structures
crosscutting siliciclastic sediments bounded by the GRUB line.
• A combined airborne magnetic and electromagnetic survey in 1969 completed by McPhar
Geophysics Ltd ., on behalf of Noranda Exploration Ltd. , defined discrete conductive zones
(Noranda Exploration, 1971) within these secondary and tertiary structures that warrant further
exploration.
The technical portion of this news release has been reviewed and approved by Mr. Nicholas Rodway,
P.Geo. and VP Corporate Development and a shareholder of Crest, a qualified person as defined under NI
43-101.
About Crest Resources Inc.
Crest Resources Inc. is a British Columbia company listed on the Canadian Securities Exchange under the
symbol CRES. The Company’s principal business activi ty is the acquisition, exploration and evaluation of
mineral property assets in Canada, Australia and Peru and the investment in mineral exploration
companies and related mining technologies of merit. The Company’s Canadian mineral property assets
include various land positions totalling 977 km2 (97,700 hectares) within the Exploits Subzone, the newest
emerging district -scale gold exploration and mining district in the province of Newfoundland and
Labrador.
FOR FURTHER INFORMATION CONTACT:
Michael Collins
President and CEO
Crest Resources Inc.
Telephone: 604-681-3170
Neither the Canadian Securities Exchange nor its Regulation Service Provider (as the term is defined in the
policies of the Canadian Securities Exchange) accepts responsibility for the adequacy of accuracy of this
news release.
Forward-Looking Statements
This news release contains certain forwa rd-looking statements, which relate to future events or future
performance and reflect management’s current expectations and assumptions. Such forward -looking
statements reflect management’s current beliefs and are based on assumptions made by and information
currently available to the Company. Readers are cautioned that these forward -looking statements are
neither promises nor guarantees, and are subject to risks and uncertainties that may cause future results
to differ materially from those expected incl uding, but not limited to, market conditions, availability of
financing, actual results of the Company’s exploration and other activities, environmental risks, future
metal prices, operating risks, accidents, labor issues, delays in obtaining governmental approvals and
permits, and other risks in the mining industry. All the forward -looking statements made in this news
release are qualified by these cautionary statements and those in our continuous disclosure filings
available on SEDAR at www.sedar.com. These forward-looking statements are made as of the date hereof
and the Company does not assume any obligation to update or revise them to reflect new events or
circumstances save as required by applicable law.