Altius Enters into Letter of Intent to Sell Its Sail Pond Project to New Found GOLD
Date:
Ticker Symbol:
28-Mar-2018
ALS.TSX
Civic Address:
Altius Minerals Corporation
Suite 202, 66 Kenmount Road
St. John’s, NL, A1B 3V7, CANADA
Website: www.altiusminerals.com
Toll Free: 1.877.576.2209
Fax: 709.576.3441
e-mail: [email protected]
Mailing Address:
Altius Minerals Corporation
P.O. Box 8263 Stn “A”
St. John’s, NL, A1B 3N4, CANADA
ALTIUS ENTERS INTO LETTER OF INTENT TO SELL ITS SAIL POND PROJECT TO NEW FOUND GOLD
Altius will receive 12 million shares and retain 2.0% NSR royalty
St. John’s - Altius Minerals Corporation (“Altius”) is pleased to announce that it has executed a Letter of Intent (“LOI”) to
sell its Sail Pond silver-copper-lead-zinc project (“Project” or “Sail Pond Property” ) on the Northern Peninsula of
Newfoundland to New Found Gold Corp. (“NFG”), a private Newfoundland -focused precious metals explorer . As
consideration for the sale of the Sail Pond Property, upon closing of the transaction, Altius will receive 12 million common
shares of NFG and will retain a 2% NSR royalty over the Project . Other key conditions of the LOI include NFG listing its
common shares on a recognized Canadian stock exchange and raising a minimum of $7.5 million via a private placement,
of which Altius w ould invest a minimum of $1 million. Furthermore, a minimum exploration commitment of $1 million
must be completed by NFG within 12 months of closing of the transaction, including an unconditional non -refundable
exploration commitment of $250,000 to be spent on or before October 31, 2018. Altius will be the operator of the work
program on the Sail Pond Property in 2018. The parties anticipate the closing of the transaction to occur on or about
September 30, 2018.
The 739 claims (18,475 Ha) Sail Pond Property comprises newly discovered occurrences of silver-copper-lead-zinc sulphide
mineralization of possible epigenetic sediment-hosted style. Extensive, high-grade silver associated with copper, lead, and
zinc mineralization is hosted within orogenic, shear-related quartz-calcite veins in altered calcareous sedimentary rocks.
The newly discovered occurrences have never been drill tested or surveyed by geophysics. Some highlights of recent rock
grab and channel sample assays include:
• Rock grab sample 12591: 2,030 g/t Ag, 7.08% Cu, 9.40% Pb, 0.46 g/t Au (South Zone)
• Rock grab sample 8329: 944 g/t Ag, 5.24% Cu, 7.6% Pb, 2.32% Zn, 0.30 g/t Au (South Zone)
• Rock grab sample 12744: 803 g/t Ag, 3.58% Cu, 0.11% Pb, 1.04% Zn, 0.17 g/t Au (North Zone) ; (note that grab
samples are selective by nature and values reported may not be representative)
• 1.0 m channel sample: 499 g/t Ag, 2.66% Cu, 6.80% Pb, 0.27% Zn, 0.33 g/t Au (Trench SPTR-10; North Zone)
• 2.9 m channel sample: 180 g/t Ag, 0.97% Cu, 0.24% Pb, 0.18% Zn (Trench SPTR-16; North Zone)
Currently, two primary zones of mineralization (i.e. South Zone and North Zone) have been defined by Altius’ exploration
team during 2017 (refer to http://altiusminerals.com/projects/sail-pond). Both zones are distinguished by thick
sequences of pervasively altered (i.e. silica ± calcite ± sericite) dolostone (or dolomitized limestone) which is interpreted
to be the primary host rock. Follow up exploration plan for this summer includes ground IP geophysical surveys to refine
drill targets to be tested later in 2018 or Q1 2019.
“We are very pleased to be partnering with NFG and its affiliated companies, Palisade Global Investments Ltd. and ThreeD
Capital, given the strong combination of technical and capital markets experience that they bring to this discovery”,
commented Chad Wells, VP Business Development of Altius. “NFG is emerging as a dominant player in precious metals
exploration in Newfoundland”.
“Our team has spent the last three years building strategic, district scale land packages with the goal of creating the go-to
exploration company in Newfoundland. This transformative deal with Altius provides affirmation for our efforts and, with
the addition of Sail Pond Property to our portfolio, solidifies our position as a leader in Newfoundland. We would like to
welcome Altius as a future key shareholder and we look forward to working together with their team to explore the
region,” stated Collin Kettell, CEO of New Found Gold Corp.
Date:
Ticker Symbol:
28-Mar-2018
ALS.TSX
Civic Address:
Altius Minerals Corporation
Suite 202, 66 Kenmount Road
St. John’s, NL, A1B 3V7, CANADA
Website: www.altiusminerals.com
Toll Free: 1.877.576.2209
Fax: 709.576.3441
e-mail: [email protected]
Mailing Address:
Altius Minerals Corporation
P.O. Box 8263 Stn “A”
St. John’s, NL, A1B 3N4, CANADA
Quality Assurance -Quality Control (“QA/QC”). All rock grab samples and channel samples were collected by Alti us
personnel and were secured and delivered to Eastern Analytical in Springdale, Newfoundland, where sample preparation
(drying, crushing and pulverizing) and analytical work was completed , with further analysis completed at ALS Global in
North Vancouver, Canada. Blanks and standards were regularly inserted into the sample sequence. For multi-element
trace analysis, the sample pulps were dissolved in four acids and analyzed by ICP -OES. For samples exceeding the upper
limits of the trace analysis, an or e grade analysis was completed. Samples reporting more than 50 g/t silver were re -
assayed with a modified ICP-OAS method with a four-acid digestion. Gold values were determined by 30 g fire assay and
AA finish. All data were reviewed and verified by Roderick Smith, Chief Geologist for Altius, a Qualified Person as defined
by NI 43-101.
Lawrence Winter, Ph.D., P.Geo., Vice‐President of Exploration for Altius, is the Qualified Person as defined by NI 43 -101
guidelines responsible for the scientific and technical information presented herein and has reviewed and approved this
release.
Further information is available at: http://altiusminerals.com/projects/sail-pond
About Altius
Altius directly and indirectly holds diversified royalties and streams that generate revenue from 15 operating mines. These
are located in Canada and Brazil and produce copper, zinc, nickel, cobalt, iron ore, potash and thermal (electrical) and
metallurgical coal. The portfolio also includes numerous pre‐development stage royalties covering a wide spectrum of
mineral commodities and jurisdictions. In addition, Altius ’s Project Generation business holds a large portfolio of
exploration stage proje cts which it has generated for deal making with industry partners that results in newly created
royalties and equity and minority interests.
Altius has 43,215,026 shares issued and outstanding that are listed on Canada’s Toronto Stock Exchange. It is a member
of both the S&P/TSX Small Cap and S&P/TSX Global Mining Indices.
For further information, please contact Flora Wood at 1.877.576.2209 or [email protected].