Iceland’s Gold -FOR IMMEDIATE RELEASE-
Iceland’s Gold
-FOR IMMEDIATE RELEASE-
Reykjavik, July 2, 2020 – St-Georges Eco-Mining Corp. (CSE: SX) (OTC: SXOOF) (FSE: 85G1) is
pleased to disclose gold results from surface exploration in Iceland and the signing of a binding letter of
intent pursuant to which it will acquire all of the shares of Melmi EHF. Melmi is an Icelandic entity that
owns a 100% interest in the Thor Gold Project in Iceland in which St-Georges had, until now, a 41%
farm-in option.
Highlights
• Acquisition of Icelandic licenses holder Melmi EHF for considerations up to CA $775,000 ;
• Commissioning of a drilling contractor who will contribute up to CA$400,000 toward the costs of
drilling on the Thor Gold Project;
• Surface sampling returning gold values ranging between 0.3 to 4.18 g/t;
• Sediment stream sampling returning a gold value of 2.33 g/t in a new area;
Gold results from the Vididalur and Vatnsdalur projects.
Set in a Miocene age basic to felsic volcanic flows and tuffs context, the region has be en previously
explored by Teck and others that have identified several ar eas of mineralizatio n occurring within fault
zones. Until recently, no important exploration campaign had been deployed in the area. This region was
previously mapped in the 1990’s by Teck . Limited s urface sampling yielded anomalous gold results
ranging from <0.005 to 34 g/t of gold with some association with silver.
Recent and previously undisclosed work from St -Georges’ geological contract or in Iceland yielded
surface gold values ranging b etween <0.3 to 4.18 g/t . These r esults were obtained from float and
outcrops. Trace elements associated with the results from this exploration effort are significantly elevated
in arsenic, antimony, and mercury typical of epithermal mineralization. A single stream sample yielded a
value of 2.33 g/t gold.
Figure 1. Picture of one of the areas with anomalous gold on the Vatnsdalur & Vididalur Projects
Figure 2. The Mountains of Vididalur area.
Acquisition of 100% of Melmi EHF
Following this spring exploration work program in Iceland , St-Georges’ management approached the
principals at Melmi to discuss the possibility of accelerating the Thor G old Project farm-in option. The
favorable context surrounding the di scussions allowed St -Georges to initia te discussions to acquire
outright all of Melmi’s assets. When concluded, this acquisition will replace the Thor Farm -in Option
Agreement and give St -Georges direct control on all active mineral licenses and applications in Iceland .
It will also streamline the decisional and licensing process by el iminating the obligation to negotiate a
long time in advance and have a third-party interest influencing the conduct of th e Company's geological
affairs and also allow the company to have direct communication with local municipalities in regards of
operational licenses.
Under the terms of the LOI, the C orporation will pay up to CA$775,000 in consideration of the Melmi
Shares, as follows:
(i) pay $65,000 upon th e execution of the definitive share purchase a greement (the “ Definitive
Agreement”)
(ii) pay an additional $60,000 on the earlier of: (a) 90 days of execution of the Definitive Agreement;
and (b) the start of drilling on the Thor Property;
(iii) issue $400,000 of non-transferable debentures of the Corporation bearing a 6% annual interest,
maturing 3 years from issuance (the “Maturity Date”), of $100,000 will be convertible into
common shares in the capital of SX (the “ SX Shares”) at a d eemed price of $0.10 per SX
Shares, $150,000 at a deemed price of $0.1 5 per SX Shares, and $150,000 at a deemed price
of $0.20 per SX Shares; and
(iv) as additional co nsideration, subje ct to and upon all the L icences Application having been
granted, issue $250 ,000 non-transferable debentures of SX bearing a 6% annual interest,
maturing 3 years from issuance, and convertible into SX Shares at a deemed price of $0.20
per SX Shares.
The Iceland Acquisition remains subject to due diligence, the entering into the De finitive Agreement on
or before September 29, 2020, and the approval of the Canadian Securities Exchange. All securities
issued under the Definitive Agreement will be subject to a hold period expiring four months and one day
from their date of issuance.
Nomination of Dr. Helen Salmon
The Company is pleased to report that it has retained the services of Dr. Helen Salmon to lea d the
Icelandic exploration team. Dr . Salmon has Ph.D. in Geology from London University. She ’s been a
senior geologist with severa l exploration companies, and she is an experienced field geologist . She has
managed many drilling programs and has extensive knowledge of Iceland geology.
Update on Thor Gold
The Thor Gold Project is now ready to be drilled . The Company has entered into an agreement with a
local geological contractor and driller. The contractor has agreed to contribute up to CA $400,000 of the
first phase total budget of CA$750,00 to be subscribed in shares of St-Georges at a later date or in cash at
the discretion of SX man agement. The balance of the budget will come from available cash and
receivables. The f irst drilling campai gn to be initia ted will be a mix of exploration, delineation, and
confirmation (twinning) drill holes. The Company’s objective is to use the result s from this first phase to
establish a maiden NI 43-101 gold resources later in the year.
The agreement to acquire Melmi EHF gives 100% ownership of the Thor Gold Project to St-Georges with
a section of the project subject to a 1% mining royalty (NSR).
The Thormodsdalur Gold Project is located about 20km east of the city center of Reykjavík and south-
east of the Lake Hafravatn. The project was discovered in 1908. Th e property produced a gold
concentrate from 1911 to 1925 , which was then shipped to Germany for processing. Over 300 meters of
tunnels explored and mined one or more quartz veins and wall rock below open cuts at the surface.
Studies between 1996 and 2013 identified a low sulfidation system hosted by basi c to intermediate flows
of Pliocene to Miocene age. The host contains banded chalcedony and ginguro within a fault zone up to 5
meters in width where drills intercepts identified a gold trend with a strike length of 700 meters. To date,
the identified gold trend has a known strike length of 700 me ters determined by drill intercepts.
Petrographic analysis of th e vein material identified gold occurri ng in its free form and as part of an
assemblage with pyrite and chalcopyrite. Petrog raphic and XRD studies show an evolutio n of the vein
system from the zeolite assemblage to quartz-adularia and lastly, to minor calcite.
To date, thirty-two holes have been drilled on the project, for a total of 2439 meters. Gold grades returned
up of 415 g/t over 0.2 meters. (These values were obtained from selected random intervals and cannot be
construed to be representative of any particular thi ckness or overall length.) The best intercepts from the
diamond drilling are 33.5m of 8.0 g/t Au (true thickness) and 5.2m of 35.4 g/t Au (true thickness).
Note: A ll informati on pertaining to mineral resources, grades or operational results related to the Thor
Project are historical in nature , and, while relevant, the informa tion was obtained from sources that cannot
be independently verified and are hence non-compliant with National Instrument 43-101.
Figure 3. Tuff layers intercalated with undifferentiated basaltic flows north of Elbow Creek on Vididalur Project.
Figure 4. Outcrops of volcanic flow breccia E of Axlaröxl (left) and SE of Elbow Creek (right)
Figure 5. Obsidian flow on top of Hrafnaklettur (left) & obsidian lens within basalt in gorge E of Axlaröxl (right)
Figure 6. Chosen samples of the preliminary rock unit of “silica-flushed basalt”. Top: grey quartz boulder with weathered vesicles;
Bottom left: concretion-like texture in a quartz-rich hand specimen; Bottom right: Boulder showing remnant pyroclastic texture.
Figure 7. Graphic showing the outcrop of a dyke swarm in the gully E of Axlaröxl with a small lens of obsidian.
Figure 8. Photo showing the inferred vein trace in scree (dotted orange) and outcropping vein (solid red) in
Elbow Creek. The outcrop at the creek bed was cleaned out and studied in detail.
Figure 9 & 10 (below): Detailed graphic of the vein outcrop in Elbow Creek.
Figure 11. Historical drill holes location on the Thor Gold Project
Figure 12. Two high-grade plunging ore shoots. Warmer colours show higher grades.
Vilhjalmur Thor Vilhjalmsson , St-Georges' President and CEO , stated: "(…)I’m delighted that we have
been able to secure a 100% hold on the asset s. It is a major milestone for the Company and secures all
tenures in Iceland, both issued and pending. This will enable us to plan all work and execution in -house
and further enable us to work on the Icelan dic projects all year round. The next step will be finalizing
Thor's sampling program tha t was put on hold during these negotiations and preparing the team for the
drilling program to follo w. With the purchase of Melmi and its assets, the Company gains an enormous
amount of historical data that covers the last three decades of mineral exploration in Ice land. We will
now set up a dedicated full-time team to work on enhancing the assets. This will also enable us to partner
out some of the projects , and discussions are a lready taking p lace with interesting parties. I would also
like to welcome Dr. Helen Salmon back to the team; she has extensive knowledge of the Icelandic geology
and the assets.(…)"
The technical information in this release has been reviewed and approve d by Mr. Herb Duerr, P.
Geo. St-Georges’ director, a qualified person as defined by National Instrument 43 -101 Standards
of Disclosure for Mineral Projects.
ON BEHALF OF THE BOARD OF DIRECTORS
“Vilhjalmur Thor Vilhjalmsson”
Vilhjalmur Thor Vilhjalmsson
President and CEO
About St-Georges
St-Georges is developing new technologies t o solve some of the most common environmental prob lems
in the mining industry.
The Company controls d irectly or indirectly, through r ights of f irst refusal, all of the active min eral
tenures i n Iceland. It also ex plores for nickel on the Julie Nickel Proje ct & for industrial minerals on
Quebec’s North Sho re and for lithium and rare metals in Northern Queb ec and in the Abitibi region.
Headquartered in Montreal, St-Georges’ stock is listed on the CSE under the symbol SX, on the US OTC
under the Symbol SXOOF and on the Frankfurt Stock Exchange under the symbol 85G1
The Canadian Se curities Exchange (CSE) has n ot reviewed and does not accept responsibility for the
adequacy or the accuracy of the contents of this release.