Emperor Metals Options Duquesne WEST GOLD Project
Emperor Metals Inc.
10545 - 45 Avenue NW
250 Southridge, Suite 300
Edmonton, AB CANADA T6H 4M9
EMPEROR METALS OPTIONS DUQUESNE WEST GOLD PROJECT
VANCOUVER, BRITISH COLUMBIA, OCTOBER 12, 2022 – Emperor Metals Inc.
(“Emperor”) (CSE: AUOZ) and Globex Mining Enterprises Inc. (“ Globex”) (TSX: GMX) are
pleased to announce the signing of an option agreement (the “Option Agreement”) dated October
7, 2022, pursuant to which Emperor has agreed to acquire a one hundred percent (100%) interest
in the Duquesne West mineral claim package. The claim package consists of a total of 38 claims
covering approximately 1,389 ha. located in the Duparquet Township of Quebec (the “Property”)
from Globex’s subsidiary, Duparquet Assets Ltd. (“Duparquet”). The transaction is subject to the
approval of the Canadian Stock Exchange (the “ Exchange”). Emperor must also complete a
private placement of not less than $1,500,000 within 150 days of Exchange approval of the
transaction (the “Financing”).
CEO Alex Horsley commented, “With Duquesne West, Emperor has an exceptional opportunity
to acquire a 100% interest in a high-grade gold deposit located along one of the most prolific gold
mining trends in the world. With existing data, our technical team mapped the known deposit with
advanced industry tools using Artificial Intelligence and Machine Learning to identify several
resource expansion targets that we plan to drill in 2023. A relatively low-cost first-year program
will enable us to further evaluate the Property and the Duparquet Township of Quebec, renowned
for its support of mineral exploration and mining, including from First Nations, existing
infrastructure, unparalleled tax incentives, and vast mineral endowment.”
The Duquesne West Gold Project
The Duquesne West Gold Property (Figure 1) is located 32 km northwest of the city of Rouyn-
Noranda and 10 km east of the town of Duparquet. The property lies within the historic Duparquet
gold mining camp in the southern portion of the Abitibi Greenstone Belt in the Superior Province.
The Porcupine Destor Fault Zone (PDFZ) cuts through the property and is well known for its link
to gold mineralization. The east-west trending PDFZ is spatially associated with many high-grade
gold deposits in the Abitibi Region with total historical gold production exceeding 110 million
ounces.1 Adjacent to the property is First Mining’s Durparquet, Pitt and Duquesne Gold Project,
which has a current CIM (2014, 2019) mineral resource estimate of 3.43 Moz measured and
indicated and 1.64 Moz inferred.2
Mineralization on the Duquesne West property consists of gold in quartz/quartz-carbonate veins
and alteration zones in porphyritic, mafic volcanic, and ultramafic rocks. The Property hosts a
historical inferred mineral resource estimate of 727,000 ounces of gold at a grade of 5.42 g/t Au. 3
The 2011 technical report is not a current report, and in result, no reliance should be made, nor
should the mineral resources be considered, as an estimate of current mineral resources.
Emperor understands that the 2011 Dusquesne West historical mineral resource estimate was
constructed using a polygonal cross-section model with a minimum cutoff of 3.0 g/t Au and a
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minimum horizontal width of 2.5 m. Samples within the mineralized wireframes were composited
at 1 m and capped at 30 g/t Au. The resource targeted potential underground mineable
mineralization and was classified as entirely inferred. The historical resource was comprised of
eight mineralized zones over an intermittent strike length of 2.5 km. The Duquesne West historical
resource utilized a gold price US$960 per ounce and was based upon CIM standards of 2005.
Given the source of the technical report, there is no reason to believe that that the results are not
relevant and reliable as an historical estimate. However, the historical estimate will need to be
verified by further exploration, confirmation drilling, and modeling. A qualified person has not
done sufficient work to classify the historical estimate as current mineral resources, and Emperor
is not treating the historical estimate as current mineral resources.
Reinterpretation of the existing geological model was created using Artificial Intelligence and
Machine Learning. This model shows opportunity for additional discovery by revealing gold
trends unknown to previous workers and the potential to expand the resource along significant
gold endowed structural zones.
1 First Mining Gold Corp. website - https://firstmininggold.com/assets/quebec-projects/
2 Technical Report prepared in accordance with National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI
43-101”) on the Duparquet Gold Project (“Duparquet” or the “Project”) titled “NI 43-101 Technical Report and Mineral
Resource Estimate Update for the Duparquet Project, Quebec, Canada,” dated October 6, 2022 with an effective date of September
12, 2022.: https://firstmininggold.com/assets/quebec-projects/
3 Watts, Griffis, and McOuat Consulting Geologists and Engineers, Oct 20, 2011, Technical Report and Mineral Resource Estimate
Update for the Duquesne-Ottoman Property, Quebec, Canada for XMet Inc.
Figure 1 Bedrock geology map showing the distribution of major gold deposits in the region and the
location of the Duquesne West gold project.
The Option
Emperor can exercise the option with Duparquet in exchange for cash and common share payments
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as set out in Table 1 below. The amount of common shares of Emperor payable in each installment
is predicated on Emperor’s volume weighted average trading price per share on the Exchange over
a period of twenty (20) trading days before the date of payment (the “VWAP”) being in excess of
$0.20 per share. Initial payments of $50,000 cash and 1,500,000 shares are non-refundable subject
to Exchange approval of the transaction, including Financing. Once approval is received and the
financing is completed, Emperor must make a cash payment of $450,000. Emperor must also
incur yearly minimum exploration expenditures on the Property as set out in Table 2 below, with
the first-year minimum exploration expenditure of $250,000 to be incurred by Oct 31, 2023.
TABLE 1 – Emperor must make cash and share payments to Duparquet as follows:
ANNIVERSARY OF
EFFECTIVE DATE
OPTION
PAYMENT
($)
COMMON SHARE
INSTALLMENT
VWAP > $0.20
COMMON SHARE
INSTALLMENT
VWAP < $0.20
Within 3 Business
Days of Exchange
approval
50,000 1,500,000 1,500,000
Within 5 Business
Days of completing
Financing
450,000 Nil Nil
First Anniversary (1) 500,000 1,500,000
That number of shares
equaling $300,000 divided
by the VWAP
Second Anniversary 500,000 1,500,000 That number of shares
equaling $300,000 divided
by the VWAP
Third Anniversary 1,000,000 3,000,000 That number of shares
equaling $600,000 divided
by the VWAP
Fourth Anniversary 2,500,000 3,500,000 That number of shares
equaling $700,000 divided
by the VWAP
Fifth Anniversary 5,000,000 4,000,000 That number of shares
equaling $800,000 divided
by the VWAP
TOTAL $10,000,000
(1): The First Anniversary Date is that date that is 15 months following the date of CSE
approval of the transaction, with each subsequent anniversary date following one
year after the last.
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TABLE 2 - Emperor must also incur exploration expenditures on the Property as follows:
No later than:
Minimum
Annual
Expenditures
October 31, 2023 $250,000
October 31, 2024 $1,000,000
October 31, 2025 $1,250,000
October 31, 2026 $1,750,000
October 31, 2027 $3,250,000
October 31, 2028 $4,500,000
Total $12,000,000
Emperor must complete a current mineral resource estimate on the Property (the “Resource
Estimate”) by the Fifth Anniversary Date. If the Resource Estimate includes at least 1 Moz Au Eq
(one million ounces of gold or gold-equivalent) resources in aggregate in measured, indicated
and/or inferred categories () under CIM guidelines, Emperor will issue Duparquet an additional
payment of 2,500,000 common shares of Emperor.
On exercise of the Option Agreement, Emperor has also agreed to grant Duparquet a three (3%)
percent gross metals royalty on the Property (the “GMR”), payable following the commencement
of commercial production. The GMR will be payable in kind for gold and silver and in cash for
any other metals recovered from the Property, subject to Duparquet’s right to elect to receive any
in-kind payments in cash. Emperor will have the right at any time to purchase one third of the
GMR (1%) from Duparquet for $1,000,000. Also, Duparquet may transfer the GMR in tranches
of not less than 1% at any time, subject to Emperor having a right of first refusal to purchase such
tranche or tranches. Beginning two years after the exercise of the Option Agreement, Duparquet
will also be entitled to receive advance royalty payments of $100,000 in cash per year from
Emperor, with such payments recoupable from royalties payable during the life of the GMR.
QP Disclosure
The technical content for the Duquesne West Project in this news release has been reviewed and
approved by John Florek, M.Sc., P.Geol., Principal of Apical Exploration, Technical Advisor for
the Company, and a Qualified Person pursuant to CIM guidelines.
About Emperor Metals Inc.
Emperor Metals Inc. is an innovative Canadian mineral exploration company focused on
developing high-quality gold properties situated in the Canadian Shield. For more information,
please refer to SEDAR (www.sedar.com), under the Company’s profile.
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ON BEHALF OF THE BOARD OF DIRECTORS
s/ “Alexander Horsley”
Alexander Horsley,
Chief Executive Officer and Director
For further information, please contact:
Mr. Alexander Horsley
Phone: 778-323-3058
Email: [email protected]
Website: www.emperormetals.com
THE CANADIAN SECURITIES EXCHANGE HAS NOT APPROVED NOR DISAPPROVED THE
CONTENT OF THIS PRESS RELEASE
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
CERTAIN STATEMENTS MADE AND INFORMATION CONTAINED HEREIN MAY CONSTITUTE “FORWARD-
LOOKING INFORMATION” AND “FORWARD-LOOKING STATEMENTS” WITHIN THE MEANING OF APPLICABLE
CANADIAN AND UNITED STATES SECURITIES LEGISLATION. THESE STATEMENTS AND INFORMATION ARE
BASED ON FACTS CURRENTLY AVAILABLE TO THE COMPANY AND THERE IS NO ASSURANCE THAT ACTUAL
RESULTS WILL MEET MANAGEMENT’S EXPECTATIONS. FORWARD-LOOKING STATEMENTS AND
INFORMATION MAY BE IDENTIFIED BY SUCH TERMS AS “ANTICIPATES”, “BELIEVES”, “TARGETS”,
“ESTIMATES”, “PLANS”, “EXPECTS”, “MAY”, “WILL”, “COULD” OR “WOULD”.
FORWARD-LOOKING STATEMENTS AND INFORMATION CONTAINED HEREIN ARE BASED ON CERTAIN
FACTORS AND ASSUMPTIONS REGARDING, AMONG OTHER THINGS, THE ESTIMATION OF MINERAL
RESOURCES AND RESERVES, THE REALIZATION OF RESOURCE AND RESERVE ESTIMATES, METAL PRICES,
TAXATION, THE ESTIMATION, TIMING AND AMOUNT OF FUTURE EXPLORATION AND DEVELOPMENT, CAPITAL
AND OPERATING COSTS, THE AVAILABILITY OF FINANCING, THE RECEIPT OF REGULATORY APPROVALS,
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