Whitehorse Gold Signs Agreement To Acquire 100% Interest of The Porvenir Tin Project in Bolivia
Whitehorse Gold Signs Agreement To Acquire 100% Interest of The Porvenir Tin Project in Bolivia
WHG-NR-22-10 August 31, 2022
Vancouver, British Columbia: Whitehorse Gold Corp. (“Whitehorse Gold” or the “Company”) (TSXV:
“WHG”, OTCQX: “WHGDF”) announces that its wholly-owned subsidiary, Stannum Metals Corp., on August
22, 2022 signed an agreement to acquire a 100% interest in a private Bolivian incorporated mining company
(the “Porvenir Tin Company”) from its three shareholders (the “Vendors”) . The Vendors are Bolivian
nationals and arm’s length parties.
The Porvenir Tin Company‘s main asset is the Porvenir tin-zinc-silver-lead polymetallic mineral Project
(the “Property”), or ATE (Temporary Special Authorization), located in the Oruro Department, Bolivia (see
Figure 1 for location). The Property was subjected to some small-scale, historic mining and was explored
and drilled by Japanese mining company, Dowa Metals and Mining Company (“Dowa”) in 2005 (see
Figure 2 for Property map and drill locations). In total, Dowa completed 88 diamond drill holes in
approximately 25,000 metres ("m”) based on the data acquired by the Company from an independent
source.
A review of Dowa’s historic drill assay results shows they had selectively sampled cores with obvious
massive pyrite/sphalerite. Dowa identified more than 19 tin-zinc veins assaying up to 941 grams per
tonne silver, 6.34% lead, 28.1% zinc, 10.20% tin, and 500 grams per tonne indium (see Figure 3 & 4 for
two drill sections).
Two best historic drill holes are hole PV-41, which intercepted a 15.05 m interval (from 316 m to 331 m)
grading 2.04% tin, 2.4% zinc, and 11 grams per tonne silver (Figure 3), and hole PV-01, which
intercepted a 6.05 m interval (from 191 m to 197 m) grading 2.27% tin, 3.23% zinc, and 13 grams per
tonne silver (Figure 4).
The Company’s geologists sampled a 0.5 m long uncut Dowa core with alteration but no obvious sulfide
and returned 0.56% tin and 0.34% zinc, suggesting Dowa may have missed tin mineralization intervals
that are low in other sulfide mineralization (see figure 5). After closing the acquisition and before being
granting a drilling permit by the Bolivia Government, the Company plans to cut, and re-sample Dowa’s
historical drill cores stored on site.
Major Terms of the Agreement
The Company will pay a total of US$1.75 million to acquire 100% of the Porvenir Tin Company in the
following instalments:
• Payment of US$750,000 to the Vendors for 51% as an initial, non-refundable down-payment
following the signing of the Agreement.
• On the first anniversary of signing, Whitehorse Gold will pay a further US$750,000 to the Vendors
for the remaining 49% of the Tin Company.
Whitehorse Gold Corp.
1750 - 1066 West Hastings Street
Vancouver, BC, Canada V6E 3X1
Telephone: (604) 336-5919
www.whitehorsegold.ca
• On the second anniversary of signing, a further US$250,000 will be payable to the Vendors.
• There is no finders fee payable in connection with this transaction.
Closing of the transaction is subject to regulatory approval, and other conditions as set out in the
Agreement.
Figure 1. Location of Porvenir in Bolivia
Location and History
At an elevation of approximately 4,100 m, the 11.25 square kilometres (km²) Property is located in the
Oruro Department of Bolivia (Figure 1), approximately 25 km Southwest of the Huanuni Mine, the largest
tin mine in Bolivia. Access is relatively easy with paved access from Oruro for 60 km and dirt road access
for 10 km from the town of Venta Y Media.
Geology and Mineralization
The mineralization is hosted within near vertical NNW to NW trending structures which occur within
Silurian age (423 – 419 Ma) clasticsediments comprising interbedded and layered units of sandstone and
LA PAZ
SANTA CRUZ
SUCRE
POTOSI
Cerro Rico
San Vicente
ORURO
San Cristobal
Central Andean tin-silver belt
PORVENIR
Bolivia
shale. The mineralization comprises a stockwork framework formed by a series of mineralized stringers, <
1cm, as well as mineralized quartz veins which range in thickness from 1 to 30 cm.
Tin is hosted within cassiterite (SnO 2), while sphalerite (ZnS) is the primary zinc mineral, with silver being
hosted in tetrahedrite. Quartz, pyrite, siderite, barite, and kaolinite account for the majority of gangue and
alteration mineral assemblages.
Historical Exploration
In 2005 Dowa conducted a 25,000 m, 88 hole diamond drill program (Figure 2) at Porvenir. Five clusters
of Dowa drill holes (mineralized zones) were completed by Dowa. Figure 2 shows the Property boundary
highlighting the location of the historic drill holes, mineralized zones, and the location of the two cross
sections included herein.
Figure 2: Property boundary at Porvenir
• Drill Hole Collar
Veins
Property Boundary
Table 1: Historic, Tin (Sn), Zinc (Zn), and Silver (Ag) Mineralized Drill Intercepts
Figures 3 and 4 show two NE-SW drill cross sections (A-B and C-D) of historic drilling results (looking NW). In
the cross sections, Dowa’s drill core samples are marked in black and clearly show selective sampling practice
that might have missed tin intervals with low sulfide contents.
Figure 3: Drill cross section A-B
Figure 4: Drill cross section C-D.
Figure 5: A 0.5m long section of Dowa core with alteration but no obvious sulfide and returned 0.56% tin
and 0.34% zinc from WHG assay testing.
Donald J. Birak, independent consultant geologist and Qualified Person as defined under National
Instrument 43-101, has conducted a site visit to this Property and has reviewed and approved the
scientific and technical information in this news release. As only a limited amount of historic core and no
assay samples exist for inspection or resampling, the Qualified Person was not able to validate the
historic drill results and the Qualified Person is relying on the historic drill results only as indicative of the
style of mineralization on the Property.
About Whitehorse Gold
Whitehorse Gold is a mineral exploration and development company focusing on tin projects in Bolivia and
a gold development project in the Yukon. The company owns 51% of the Porvenir tin project 70 km
southeast of Oruro Bolivia, and the right to increase o wnership to 100%. The company also has the right
to acquire a 100% interest in a second tin project 65 km southeast of Oruro Bolivia. The company also
owns 100% of the Skukum Gold project located in southern Yukon, approximately 55 km south- southwest
of Whitehorse. The Skukum Gold project hosts the formerly producing Mt. Skukum high- grade gold mine.
Project infrastructure includes an all -weather access road, a 50- person camp, approximately 6 kms of
underground development, and a previously operating 300- tpd mill and associated support facilities.
Underground operations by a previous operator at Mt. Skukum from 1986 to 1988 saw 233,400 tons of ore
mined and processed to recover approximately 79,750 ounces of gold (Total Energold Corporation, 1989).
On Behalf of Whitehorse Gold Corp.
signed “Gordon Neal”
Gordon Neal, CEO & Director
For further information please contact:
Investor Relations, Whitehorse Gold Corp.,
Phone: (604) 336-5919
Email:[email protected]
www.whitehorsegold.ca
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news
release.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION
Certain of the statements and information in this press release constitute “forward- looking information”
within the meaning of applicable Canadian provincial securities laws. Any statements or information that
express or involve discussions with respect to predictions, expectations, beliefs, plans, projections,
objectives, assumptions or future events or perf ormance (often, but not always, using words or phrases
such as “expects”, “is expected”, “anticipates”, “believes”, “plans”, “projects”, “estimates”, “assumes”,
“intends”, “strategies”, “targets”, “goals”, “forecasts”, “objectives”, “budgets”, “schedules”, “potential” or
variations thereof or stating that certain actions, events or results “may”, “could”, “would”, “might” or “will”
be taken, occur or be achieved, or the negative of any of these terms and similar expressions) are not
statements of historical fact and may be forward- looking statements or information. Forward- looking
statements or information relate to, among other things: the timing for payments under the Agreement
including the acquisition of an initial 51% of the Tin Company and the remaini ng 100%; that the Project
could be successful exploration venture for the Company that the tin market will see further growth; and the
timing for receipt of regulatory approvals required under the Agreement; the assembling of a Bolivian
drilling team; com pletion of the confirmation drilling; the acquisition by the Company of the T in Company
pursuant to the terms of the Agreement; and the implementation of the drilling program by the common
standards of the best practices best practices of industry..
Forward-looking statements or information are subject to a variety of known and unknown risks,
uncertainties and other factors that could cause actual events or results to differ from those reflected in the
forward-looking statements or information, including, w ithout limitation, risks relating to: regulatory
approvals for the acquisition of the T in Company; the ability of the Company to finance the acquisition of
the Tin Company; the inability or failure of the Company and the Vendors to satisfy the conditions to the
completion of the acquisition of the Tin Company; the ability of the Company to integrate the Tin Company
into the Company’s existing operations; the devotion of management time and resources required to
complete the acquisition of the T in Company; the advancement globally of electrification with
decarbonization; current global financial conditions the availability of a Bolivian drilling team and the ability
to complete the confirmation drilling within the time permitted under the Agreement; the possibility that the
confirmation drilling and future exploration results will not be consistent with the Company’s expectations;
the ability of Company to obtain the necessary permits and consents required to complete the confirmation
drilling; operating in Bolivia including possible expropriation or nationalization without adequate
compensation, changing political and fiscal regimes, and economic and regulatory instability, unanticipated
changes to royalty and tax regulations, unreliable or undeveloped in frastructure, labour unrest and labour
scarcity, difficulty obtaining key equipment and components for equipment, regulations and restrictions with
respect to imports and exports; high rates of inflation, extreme fluctuations in currency exchange rates and
the imposition of currency controls, the possible unilateral cancellation or forced re-negotiation of contracts,
and uncertainty regarding enforceability of contractual rights, inability to obtain fair dispute resolution or
judicial determinations because of bias, corruption or abuse of power, difficulties enforcing judgments
generally, and in particular those obtained in Canadian courts against assets located outside of those
jurisdictions, difficulty understanding and complying with the regulatory and legal framework respecting the
ownership and maintenance of mineral properties, mines and mining operations, and with respect to
permitting, local opposition to mine development projects, which include the potential for violence, property
damage and frivolous or vexatious claims, violence and more prevalent or stronger organized crime groups;