Black Mammoth Metals Acquires IDA Mining for the America Mine Gold Property No.24-1 BMM: TSX-V
Black Mammoth Metals Acquires IDA Mining
for the America Mine Gold Property
No.24-1
BMM: TSX-V
VANCOUVER, BC
,
Jan. 18, 2024
/CNW/ -
Black Mammoth Metals Corporation
(TSX-V: BMM)
(OTC: LQRCF)
("Black Mammoth" or the "Company")
is pleased to announce that it has entered
into a share purchase agreement (the "Agreement") with
Dustin Henderson
, the Chief Executive
Officer ("CEO") and a director of the Company, to acquire all of the issued and outstanding common
shares of IDA Mining Corporation ("IDA Mining"), a non-arm's length
Nevada
corporation (the
"Transaction"). IDA Mining holds an option (the "Option") to acquire a 100% undivided interest in the
America Mine property (the "America Mine" or the "Property") located in
San Bernardino County,
California
.
Open
Pit Heap Leach
Opportunity:
The America Mine encompasses a historical (early 1980's), open pit heap leach gold and silver
mine, located on the northeast flank and near the base of the Bullion Mountains, 10 miles south of
Amboy and approximately 50 road miles northeast of
Twentynine Palms
and has year-round road
access by a two-mile-long graded dirt road from Amboy Highway (paved). Currently, the America
Mine should be considered an open pit & underground heap leach opportunity. Sufficient water has
been developed from a shallow water table for mining purposes and there is 3 phase, 440 volt/1200
ampere power on site.
San Bernardino County
is considered a mining friendly county with over 50
mines currently active with a wide range of commodity types including open pit heap leach gold.
Historical Estimates & Work:
In a report dated
February 18, 1997
, Mine Development Associates in
Reno, Nevada
("MDA")
performed independent, now historical estimates of gold mineral resources and reserves for the
property, prior to the implementation of Canadian National Instrument 43-101 ("NI 43-101"). At a
gold cutoff grade of 0.015 ounces per short ton ("oz Au/Ton"), MDA estimated "Indicated" resources
of 7.445 million Tons at an average grade of 0.045oz Au/Ton for 335,000 contained gold ounces. At
the same cutoff grade, an additional 42,000 gold ounces were estimated to be contained in
"Inferred" resources of 0.935 million Tons at an average grade of 0.045oz Au/Ton (Table X).
Table X, MDA 1997 Report – "Resource" Estimate Summary
1997 Classification
Cutoff Gold
Grade (oz/Ton)
Tons
Gold Grade
(oz/Ton)
Gold Ounces
"Indicated"
0.015
7,445,000
0.045
335,000
"Inferred"
0.015
935,000
0.045
42,000
Total "Indicated and
Inferred"
0.015
8,380,000
0.045
377,000
Black Mammoth is not treating the historical estimates as current mineral resources, and a
qualified person has not done sufficient work to classify the historical estimates as current mineral
resources or mineral reserves. Although the historical resources were classified using the terms
Indicated and Inferred, it is not known if the 1997 classifications varied from, or were the same as
the categories set out in sections 1.2 and 1.3 of NI 43-101. A qualified person has not yet
determined what work needs to be done to upgrade or verify the historical estimates as current
mineral resources or mineral reserves. The 1997 estimated gold resources are relevant for
historical completeness, but should not be relied on.
The MDA historical resources were estimated using mineral zone boundaries interpreted from a
detailed lithological and structural model on 10-foot bench plans and digitized in Surpac software.
Gold assays from 320 drill holes were composited to 10ft intervals and extracted as 10-foot bench
composites within the mineral zones. Ordinary kriging was done after variogram analysis for low-
grade and high-grade domains controlled by the geologic mineral zone boundaries. A minimum of
two samples were used to estimate gold grades for individual blocks. No drilling has been
conducted on the Property since prior to the completion of the 1997 historical resource estimate.
Black Mammoth has possession of the laboratory assay certificates from the assays used for the
1997 estimation and sample pulps from the historical drilling for use in future data verification. MDA
estimated potential open pit "Reserves" in the same
February 18, 1997
report based on the 1997
estimated gold mineral resources and block model using Whittle software.
A Base Case was
estimated in US Dollars using a gold selling price of
$400
/oz, pit slopes of 45 degrees,
process costs of
$3.75
per short ton, mining costs of
$0.85
per short ton and a range of gold
recoveries
estimated as follows in Table Y:
Table Y, MDA 1997 Report - Mineralized Material Types
Material Type
Gold
Recovery (%)
"Oxidized low-grade"
75
"Oxidized mid-grade"
80
"Oxidized high-grade"
85
"Unoxidized low-grade"
55
"Unoxidized mid-grade"
60
"Unoxidized high-grade"
70
Total "Reserves" of 2,953,800 tons with an average grade of 0.060oz Au/Ton and 177,100
contained ounces of gold were estimated with a stripping ratio of 8.5 tons of waste to 1.0 tons of
mineralized material to be processed as summarized in Table Z:
Table Z, MDA 1997 Report - "Reserves" Estimate Summary
1997 MDA Base
Case Category
Tons
Gold Grade
(oz/Ton)
Gold Ounces
Oxide
1,963,200
0.061
119,800
Sulfide
990,600
0.058
57,300
Total
2,953,800
0.060
177,100
Strip Ratio
8.5 : 1
Black Mammoth is not treating the historical estimates as current mineral reserves, and a qualified
person has not done sufficient work to classify the historical estimates as current mineral
reserves. The historical Reserves were classified using categories other than the ones set out in
sections 1.2 and 1.3 of NI 43-101, based on modeled oxidation characteristics, but other
differences are not known to Black Mammoth. A qualified person has not yet determined what
work needs to be done to upgrade or verify the historical Reserves as current mineral reserves.
The 1997 estimated gold Reserves are relevant for historical completeness, but should not be
relied on.
The estimate of the historical gold mineral "Reserve" is located under and around the 2 small past
production pits ("East & West pits"). Other past work include: detailed geologic mapping, geologic
cross sections, bench maps, geophysics, geochemistry, metallurgy, multiple Environmental
Assessments and a draft Environmental Impact Assessment.
Additional Mineralization:
Additional mineralized zones may exist both up-dip and down-dip from identified mineralization, along
strike from known mineralization in both directions. High-grade zones may exist down-dip along the
America Mine shear.
Acquisition Terms (in USD):
Pursuant to the terms of the Agreement, Black Mammoth has agreed to purchase all of the issued
and outstanding common shares of IDA Mining, a non-arm's length Nevada Corporation, from Mr.
Henderson in consideration for the assignment and assumption of approximately
$150
,000 in costs
(collectively, the "Costs") incurred by Mr. Henderson on behalf of IDA Mining in connection with the
agreement underlying the Option (the "Option Agreement"). The Costs include, but are not limited to:
Property option payments
($100,000)
, engineering, BLM & county fees, legal, rock chip sampling,
claim staking etc. Black Mammoth will also incur an interest expense on the Costs going forward at
9% per annum.
Under the terms of the Option Agreement, IDA Mining may purchase a 100% interest in the America
Mine by making an aggregate of
$1,106,500.65
in cash payments in accordance with the following
schedule (collectively, the "Option Payments"):
Payment Date
Cash Payment
Status
Five days from effective
date of Option Agreement
$11,500.65
Paid
Forty-five days from
effective date of Option A
greement
$95,000
Paid
August 31, 2024
$500,000
-
August 31, 2025
$500,000
-
TOTAL:
$1,106,500.65
In addition to the above, IDA Mining must also cover the Property's annual fees of approximately
$12,000
, which includes all BLM & county fees. Upon completion of the Option Payments, IDA
Mining will be deemed to have exercised the Option and will have earned an undivided 100% interest
in and to the America Mine.
There are no royalties, work commitment amounts, finder's fees or share compensation in
connection with either the Option Agreement or the Transaction.
The Transaction is subject to the prior approval of the TSX Venture Exchange ("TSXV") as well as
other customary closing conditions for a transaction of this nature and enumerated in the
Agreement.
Land:
The Property consists of 4 patented claims, 31 unpatented Bureau of Land Management ("BLM")
claims, and 6 millsite BLM claims. When including IDA Mining's recently staked and filed 8
unpatented BLM claims, the America Mine, now totals approximately 643 contiguous acres.
Elevations vary from 850 – 1500 feet. The East & West pits are at 1180 feet with the past
production leach piles at 950 feet, 1/3 of a mile away.
Environmental Topics:
The Property lies within an uninhabited area of the Mojave Desert with sparse vegetation and the
East & West pit areas are not visible from Amboy Highway. A biological and botanical study was
conducted in 1990 at the America Mine confirming that there are no federally recognized rare,
threatened or endangered plant or animal species. A desert tortoise survey was also conducted in
1990 which found no desert tortoises or signs of desert tortoises on or near the Property. A
significant portion of the America Mine has been
previously disturbed
by past mining and exploration
drilling activities.
Geology:
The America Mine lies within a tectonic province known for long-lived periods of deformation
continuing to the present time. Large blocks have undergone uplift, depression and accompanying
metamorphism, compressional faulting and extensional faulting. Tectonism has been associated with
both volcanic and intrusive activity.
Mineralization at the America Mine is controlled by a low-angle, northeast-trending shear zone that
dips to the northwest 20
o
-35
o
. Upper plate rocks are Jurassic mafic intrusive rocks and greenschist
metavolcanic and metasedimentary rocks. Lower plate rocks include banded augen gneiss to
gneissic granite.
A late Jurassic porphyritic dacite has intruded the low-angle fault and appears to be spatially and
genetically associated with mineralization. Tertiary dacite sills and dikes post-date mineralization and
have displaced gold mineralization in several locations. Several northwest-trending faults displace the
mineralized zone 50-100 ft. The mineralized zones are elongated in a northeast direction and occur
where high-angle northwest-trending step faults cross the primary low-angle shear. These step
faults create a thickening of brecciated zones and mineralization.
Unoxidized mineralization consists of quartz, sericite, and pyrite. The highest-grade gold zones are
associated with 1% to 5% base metal sulfide minerals such as galena, sphalerite, and chalcopyrite.
Oxidized mineralization contains quartz and sericite alteration, and is accompanied by hematite,
goethite, jarosite, plumbojarosite, and minor manganese oxide.
Related Party Disclosure:
Dustin Henderson
, the CEO, Secretary and a director of the Company is also the President,
Treasurer, Secretary, director and a sole shareholder of IDA Mining. Accordingly, the Transaction
constitutes a "related party transaction" within the meaning of Multilateral Instrument 61-101 –
Protection of Minority Security Holders in Special Transactions ("MI 61-101"). The acquisition of
the common shares of IDA Mining and the assignment of the Costs to the Company, however, are
exempt from the valuation requirements of MI 61-101 by the virtue of the exemption contained in
section 5.5(b) as the Company's shares are not listed on a specified market and from the minority
shareholder approval requirements of MI 61-101 by virtue of the exemption contained in Section
5.7(1)(a) as the value of the Costs being assigned under the Agreement do not exceed 25% of the
Company's market capitalization.
About Black Mammoth Metals Corporation:
Black Mammoth has 15,876,871 shares issued and outstanding,
21,666,871
shares fully
diluted.
Aside from the proposed acquisition of IDA Mining, the Company has completed a ground gravity
survey that is now modeled and interpreted in conjunction with the recent UAV magnetic survey at its
100% owned, 1213 hectare (2997 acre)
Happy Cat gold property
, in southern Ravenswood Mining
District,
Lander County, Nevada
.
An approximate 4 square kilometre area is identified as a hydrothermally altered area. Structural
modelling suggests the density of the alteration and its' density contrast relative to the host rock is
typical to that of alteration zones present at other
Carlin
-type deposits in northern
Nevada
. The
alteration encompasses an area where northerly trending high angle faults intersect indicated NW
trending re-activated faults that are known to be of age and orientation as ore-controlling faults
occurring at other
Carlin
-type deposits. The Company intends to prioritize drill targets within the
alteration area.
Black Mammoth also has a 100% interest, subject to underlying royalties, in the
Blanco Creek gold
property
in the Elk Creek Mining District, central
Idaho
which hosts three historic underground mines
along 3550 meters (11,644 feet) of strike on the north-east trending regional
Blanco Shear Zone
.
Exploration by two previous operators identified a geological target for the Blanco Creek property in
the order of 1.7 to 2.48 million tons, grading 0.20 to 0.33 oz/ton Au (1.54 to 2.24 million tonnes,
grading 6.85 to 11.31 g/tonne Au); see the Company's press release dated
February 14, 2017
.
Black Mammoth cautions investors to note the potential quantity and grade of the geological target
are conceptual in nature. A qualified person has not completed sufficient work to classify the
geological target as mineral resources as defined by NI 43-101, and it is uncertain if future
exploration will result in the target being delineated as mineral resources.
Adam Knight P.E
., a Qualified Person as defined under National Instrument 43-101 -
Standards of
Disclosure for Mineral Projects
("
NI 43-101
") and independent director of Black Mammoth, has
reviewed and approved the technical content in this release. Historical information contained in this
news release cannot be relied upon as Mr. Knight has not prepared nor verified the historical
information.
On behalf of the board,
"Dustin Henderson"
Dustin Henderson
, BBA
President & CEO
This press release contains forward-looking statements and forward-looking information
(collectively, "forward looking statements") within the meaning of applicable securities laws. All
statements, other than statements of historical fact, included herein, including statements regarding
the Company's completion of the Transaction and related transactions are forward-looking
statements. Forward-looking statements are typically identified by words such as: believe, expect,
anticipate, intend, estimate, postulate and similar expressions or are those which, by their nature,
refer to future events. Although the Company believes that such statements are reasonable, there
can be no assurance that such statements will prove to be accurate, and actual results and future
events could differ materially from those anticipated in such statements. The Company cautions
investors that any forward-looking statements by the Company are not guarantees of future
performance, and that actual results may differ materially from those in forward-looking
statements. Important factors that could cause actual events and results to differ materially from
the Company's expectations include that the requisite corporate and TSXV for the Transaction may
not be obtained; that the Company or IDA Mining, as applicable, may be unable to satisfy any or
all closing conditions necessary for the completion of the Transaction; and other risks that are
customary to transactions of this nature. Trading in the securities of the Company should be
considered highly speculative. All of the Company's public disclosure filings may be accessed via
www.sedarplus.ca
and readers are urged to review these materials, including the latest technical
reports filed with respect to the Company's mineral properties.
Neither 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
release.
SOURCE
Black Mammoth Metals Corp
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For further information:
Black Mammoth Metals Corporation: Phone: 604 347 9101, Email:
[email protected], Website: www.blackmammothmetals.com
CO: Black Mammoth Metals Corp
CNW 09:16e 18-JAN-24