OTCQB SYMBOL: PMCFF All Four Peloton Projects Active this Fall with Three Drilling Programs and Surface Field Work in Elko County, NV and the Virginia City Mining District, MT Receives CDN$523,302.50 Financing Tranche London, Ontario – Peloton Minerals Corporation (“Peloton” or the “Company”)
PELOTON MINERALS CORPORATION
NEWS RELEASE
September 17, 2019 CSE SYMBOL: PMC
OTCQB SYMBOL: PMCFF
All Four Peloton Projects Active this Fall
with Three Drilling Programs and Surface Field Work
in Elko County, NV and the Virginia City Mining District, MT
Receives CDN$523,302.50 Financing Tranche
London, Ontario – Peloton Minerals Corporation (“Peloton” or the “Company”)
(CSE Symbol: PMC) (OTCQB Symbol: PMCFF) is pleased to announce that all four of
Peloton’s gold exploration projects will be active this fall with drilling programs being
conducted on three projects and surface field work on a fourth project in preparation for
an NI 43-101 technical report on that project to be issued late r this year. In addition, the
Company has received subscriptions of CDN$523,302.50 toward a second tranche of
private placement financing as below.
Three of the projects are located in Elko County, Nevada and one project is in the Virginia
City Mining District, Montana with the programs and timing summarized in alphabetical
order of the project as below.
Golden Trail Project, Nevada - This drill program is being funded by Peloton and the
project is 100% owned. An existing ex ploration permit is now being amended to cover a
Carlin style alteration anomaly identified by an airborne Hyperspectral UV survey and
drilling is expected to commence in mid-October, 2019.
Gold mineralization at Golden Trail is generally centered on appr oximately 10 square
kilometres of thermal metamorphism and hydrothermal/metasomatic alteration. Gold
mineralization occurs locally in north -west striking dilational zones containing
numerous, high -angle gold -bearing veins and adjacent replacement zones, an d
centered within calcsilicate skarn. The largest identified surface vein extends over
1,200 meters in length with an associated alteration zone averaging 30 metres wide.
Gold values above 20 ppb are common with several samples assaying above 9 g/t Au
and one above 28 g/t Au. Continuous 5 -foot trench samples returned 13.7 grams
gold with 36.2 grams silver in one 5 -foot trench, and 3.49 grams gold with 105
grams silver in a second 5 foot trench. In weathered and oxidized outcrop samples,
elevated Ag, As, Sb and T I values accompany Au in iron -rich zones commonly
associated with a carbon ate+montmorillonite+white mica assemblage.
Independence Valley Project, Nevada - This drill program is being funded by Kinross
Gold USA Inc. who may earn a 75% interest in the project by spending US$4,000,000
over 6 years. Drilling is expected to begin in mid-September, 2019.
The 2019 drill plan at the Independence Valley Project will test a structural corridor in the
southwest portion of the claim block supported by new geological mapping, recently
acquired gravity and CSAMT surveys, and minor geochem istry (As>500ppm). The
primary drill target is a potential down-dropped east limb of a NNW trending antiform. The
drilling program will test this structure to depths of 800 to 1,200 feet.
Silver Bell St. Lawrence (SBSL) Project, Montana - This drill program is being funded
by Frederick Private Equity Corporation and African Metals Corporation who may
earn a 75% interest in the project by spend ing US$2,000,000. Geologic mapping and
surface sampling are in progress and drilling is expected to begin as soon as the drilling
permit application is processed.
The 2019 drill plan at the SBSL Project will test the gold vein system in and around the
St. Lawrence mine which is the eastern of two past producing gold mines on the property,
the Silver Bell on west and the St. Lawrence on the east . Both mines operated in the
early 1900s and the St. Lawrence was reactivated and operated in the early 1980s.
Historical production records are incomplete but available information suggests that
historical production at the St. Lawrence was approximately 0.22 ounces per ton (“opt”)
gold and 3.8 opt silver. Smelter receipts for small shipments from the St. Lawrence
indicate that some ore with much higher grades was shipped. For example, a smelter
receipt from October 30, 1964 states that 8.027 tons were received grading 0.76 opt
gold and 20.0 opt silver. Historical production at the Silver Bell averaged approximately
0.2 opt gold and 15.1 opt silver.
The shafts for each of the former mines are located 3,600 feet apart and the exploration
hypothesis is that the two mines shared m ineralized systems that may in part be
contiguous. Surface mapping and geophysical surveying by the Company support this
initial hypothesis and may indicate extension of the vein system farther east along strike
from the St. Lawrence mine.
Texas Canyon P roject, Nevada – A field reconnaissance and sampling program will
commence in mid-September on the Texas Canyo n Project to follow up on Carlin style
alteration anomalies identified by an airborne Hyperspectral UV survey. This data will
then be incorporated into an NI 43 -101 technical report being prepared on this project
and expected to be released later this year.
Texas Canyon is centered on a major boundary fault between mineralized Paleozoic
limestone and postmineral Tertiary geologic units which includ e the Jarbidge Rhyolite
and tuffs and conglomerates of the Humboldt Formation. This fault and related
structures are thought to be the conduit for mineralizing fluids that altered and replaced
the limestone and limestone breccias. This is based on detailed geologic mapping,
surface geochemistry with gold values up to 1280 ppb and molybdenum values up to
1660 ppm, a surface magnetic survey and a surface radiometric survey. The recent
Peloton airborne hyperspectral survey corroborated prior data, showing broa d hi AL -
illite and NH3 -illite anomalies at Texas Canyon.
Private Placement - The Company has received subscriptions for a second tranche of a
non-brokered private placement with the second tranche being CDN$ 523,302.50 (the
“Private Placement”) and consisting of 5,233,025 units priced at CDN$0.10 per unit. Each
unit consists of one common share and one common share purchase warrant exercisable
for three years at $0.15.
The securities issued in connection with the Private Placement are subject to a hold
period expiring four months and one day from the issuance of the securities.
Peloton President Edward (Ted) Ellwood comments : “We are pleased to enable
exploration activity on all four Peloton projects for the 2019 season. We look forwar d to
the results and toward building on these programs.”
Richard Capps , PhD, is the qualified person responsible for approving the technical
information contained within this release pertaining to the Nevada projects.
John Childs , PhD, is the qualified pe rson responsible for approving the technical
information contained within this release pertaining to the Montana project.
For further information please contact:
Edward (Ted) Ellwood, MBA
President & CEO
1-519-964-2836
About Peloton: Peloton Minerals Corporation is a reporting issuer in good standing in
the Provinces of Ontario and British Columbia whose common shares are listed on the
CSE (Symbol: PMC) and are quoted in the U.S. as OTCQB Symbol: PMCFF. There are
84,571,354 common shares issued and outstanding in the capital of the Company
including the shares to be issued under the financing described in this release.
Peloton holds three gold explorati on projects located in Elko County, Nevada , one of
which is under option to Kinross Gold USA Inc. , and one gold exploration project in the
Virginia City Mining District, Montana, which is under option to Frederick Private Equity
Corporation and African Metals Corporation.
CSE has not reviewed and does not accept responsibility for the adequacy or
accuracy of this release.
This news release contains "forward-looking information" (within the meaning of applicable Canadian securities laws)
and "forward-looking statements" (within the meaning of the U.S. Private Securities Litigation Reform Act of 1995).
Such statements or info rmation are identified with words such as "anticipate", "believe", "expect", "plan", "intend",
"potential", "estimate", "propose", "project", "outlook", "foresee" or similar words suggesting future outcomes or
statements regarding an outlook.
Such statements include, among others, those concerning the Company’s plans for exploration activity and to conduct
future exploration programs. Such forward -looking information or statements are based on a number of risks,
uncertainties and assumptions which may caus e actual results or other expectations to differ materially from those
anticipated and which may prove to be incorrect. Assumptions have been made regarding, among other things,
management's expectations regarding its ability to initiate and complete futur e exploration work as expected. Actual
results could differ materially due to a number of factors, including, without limitation, operational risks in the completion
of the Company’s future exploration work, technical, safety or regulatory issues.
Although the Company believes that the expectations reflected in the forward -looking information or statements are
reasonable, prospective investors in the Company’s securities should not place undue reliance on forward -looking
statements because the Company can provide no assurance that such expectations will prove to be correct. Forward-
looking information and statements contained in this news release are as of the date of this news release and the
Company assumes no obligation to update or revise this forward-looking information and statements except as required
by law.