St-Georges has secured the Ownership of All Mineral Licenses in the Republic of Iceland.
St-Georges has secured the Ownership of All Mineral Licenses in the Republic
of Iceland.
-FOR IMMEDIATE RELEASE-
Reykjavík, October 2 6, 2020 – St-Georges Eco-Mining Corp. (CSE: SX) (OTC: SXOOF) (FSE :
85G1) is pleased to report that it has completed the acquisition of Melmi EHF, the Icelandic corporation
that owned the ma jority interest in the Thor Gold Project and the remainder or the Icelandic mineral
licenses not already controlled by St-Georges.
This transformative acquisition gives total control over the mineral licenses of the Republic of Iceland to
St-Georges, making it the only jun ior exploration company to own all the mineral right s of a western
country. This acquisition allows St-Georges to control its destiny and plan its exploration campaigns with
no interference. It also gives the Company’s geological team access to extensive libraries of geological
data, a large number of historical mineral samples and a well-maintained and secured national core shack
that will be useable for future development. Furthermore, all the diamond drill cores from the Thor Gold
project are now in the Company ’s ownership and possession . The Company expects to be able to
resample these cores in the process of elaborating its maiden NI 43-101 Gold-Silver and Copper resource
estimate on the Thor Gold Project.
The Melmi EHF Acquisition
As previously disclosed in a press release on July 2, the Corporation will pay up to CA $775,000 in
consideration of all the Melmi EHF 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 Gold Project;
(iii) issue $400,000 of non-transferable debentures of the Corporation bearing a 6% an nual 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 deemed price of $0.10 per SX Shares,
$150,000 at a deemed price of $0.15 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 al l 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.
Iceland Operational Update
In September, the Corporation drilled a reversed circulation (R C) dri ll hole for a total length of 124
meters. In October, reconnaissance and follow-up fieldwork was conducted in Vopnafjordur (Vopna) and
Tröllaskagi (Trolla) projects. Mineralization bearing outcrops were identified and sampled and brought
to St -Georges’ secure facilities in Reykjavik for petrographic analysis . Some of these s amples we re
prepared to be sent for assays to ALS Laboratories in Dublin , Ireland. Management expects that the
results of these essays will become available later this year , and the Company expects to report on it as
soon as the information becomes available.
Vilhjalmur Thor Vilhjalmsson , President and CEO of St -Georges Eco-Mining Corp. commented: “(…)
this is an important milestone for St-Georges and will enable the Company to be more aggressive in its
exploration of Iceland geological and mining potential . (…) We look forward to advancing the projects
already established and to discover additional potential across the whole country. We are committed to
regularly informing our shareholders on the progress of work in the field. Most of Iceland can be explored
for minerals all year long. This allows us to modulate our efforts in relation to the earned val ue of the
different project timelines and keep being constantly active on the Thor Gold flagship project. Having full
ownership of Thor enables us to develop the project on our terms, maximizing the impact of the results
while keeping the financial pressure and the share count dilution under control (…)”.
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 to solve some of the most common environmental problems
in the mining industry.
The Company controls directly or indirectly, through rights of first refusal, all of the active mineral
tenures in Iceland. It also explores for nickel on the Julie Nickel Project & for industrial minerals on
Quebec’s North Shore and for lithium and rare metals in Northern Quebec 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 Securities Exchange (CSE) has not reviewed and does not accept responsibility for the adequacy or
the accuracy of the contents of this release.
About Iceland
Iceland climate, location, access and infrastructure (Histed,R,2010)
Located in the North Atlantic, approximately midway between Greenland and Great Britain, the warm
North Atlantic Curre nt ensures that the climate in Ic eland, described as subpolar, oceanic, has generally
higher temperatures than locations of similar latit ude throughout the world. Regions or places that have
similar climate are Tierra del Fuego, the Aleutian Islands and A laskan Peninsula. Although Icela nd lies
close to the Arctic, its coasts remain ice-free year-round.
As can be expected, the southern coast is general ly warmer, wetter and windier than the northern coast.
The lower-lying, inland areas in the north a re the most arid, although snowfall in the north during the
winter months is greater than in the south.
Historically, recorded temperatur e extremes for t he co untry are 30.5 C and -38.0C. The high in
Reykjavik was 26.2C in 2008, and the low there was -24.5C in 1918. Although the Icelandic climate can
be harsh, the GÍ -Melmi JV comp leted a drilling program at Thormodsdalur (Thor Gold Project) from
November 2005 through May 2006 without undue difficulty. In the north, the increased snowfall would
make an effort such as this more difficult. Reconnaissance is to be limited to the summer months.
Iceland’s infrastructure is well developed and mo dern. Road con struction was begun around the star t of
the 20 th century and peaked during the 1980’s. The roads ar e well constructed and maintained asphalt ,
although some g ravel roads are still f ound. The current road system connects most of the larger to wns
and villages and is mostly confined to the coa stal areas. Currently, there are a total of 12,691 kilometers
of roads in Iceland that includes 3,262 kilometers of paved surface. Inland road access diminishes to dirt
roads to no roads making access to some areas difficult, requiring foot travel or helicopter support. There
are no railroads in Iceland.
Geological Setting
Iceland occurs at the junction of two large physical structures; the Mid Atlantic Ridge and the Greenland-
Iceland-Faeroes Ridge ( Figure 9). At th is int ersection, the mantle is ho tter and less dense than the
surrounding mantle. The mantle material rises as a result of heat and chemical -related density differences
resulting in a dome in the crust above. This hotspot is causing a higher rate of extrusive volcanism at this
point on the Mid Atlantic Ridge, which has, in turn, caused the region to be built up to a level more than 3
kilometers above the surrounding seafloor and covers an area of more than 350,000 km 2. This is known
as the Ic eland Basalt Plateau. The portion of the platea u above sea level is now the country of Iceland
(Martin, et al., 2007).
Figure 9. Tectonic setting
In the Mid Atlantic Rift environment, the c entral portions of Iceland have moved outwards, away from
the zones of active rifting and crustal development such that oldest rocks occur towards the margins and
youngest in the center. Due to the migration of the hotspot to the south-east with time, an asymmetry has
been imparted to the shape of the island. Curr ently, the hotspot lies under the south -eastern quadrant of
the island (Corbett, 2004). This area now denotes the zone of active rifting and vol canism. Figure 10
shows the geology of Iceland defined by tectonic zones that coincide with the ages of the rocks.
Figure 10. Principal Tectonic Zones
The significant rift systems that have focused volcanism through time are noted below.
• The Snæfellsnes-Skagi Rift Zone in western Iceland was active in the 16-6.5 m.y. period.
• The Reykjanes-Langjökull Rift Zone in central western Iceland resulted in the development of the
Reykjanes Peninsula from about 6 my.
• The North Volcanic Rift Zone became active from 3-4 my and extends to the present time.
• An Eastern Volcanic Rift Zone is developing at this time.
Significant quantities of fe lsic intrusive and extrusive rocks occur in the dominantly basaltic sequence,
and the felsic rocks locally display gold-anomalous hydrothermal alteration (Corbett, 2004).
Structurally, NE fractures reflect the spreading centre dire ction and are , therefore, some of the most
numerous and laterally extensive fracture patterns, commonly evident as normal fault s that may be
exploited by dykes. NS and ENE fractures are developed as conjugate fractures during the NW -SE
extension.