Bonanza Mining Corporation announces Private Placement and the Completion of the Frog Property IP survey and a Soil sampling and Geological Mapping Survey
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Bonanza Mining Corporation
Suite 105-1008 Beach Avenue
Vancouver, BC
V6E 1T7
Trading Symbol: TSX-V: BNZ
Email: [email protected] and
Telephone: 604-619-0225
Fax: 604-980-6264
Website: www.bonanzamining.com
Bonanza Mining Corporation announces Private Placement and the Completion of the Frog
Property IP survey and a Soil sampling and Geological Mapping Survey
September 20 , 2022 – Vancouver, British Columbia : Bonanza Mining Corporation
(“Bonanza”) (TSX -V: BNZ) announces a non -brokered private placement offering (the
“Offering”), to consist of the sale of the following securities:
(a) up to 2,500,000 flow -through units at a price of $0.10 per unit, to raise gross
proceeds of up to $250,000, to fund Critical Mineral Exploration Expenses that
qualify for the 30% Critical Mineral Exploration Tax Credit (“CMETC”) as
provided for in the Canadian federal budget of April 7, 2022, each flow-through
unit to consist of one CMETC eligible flow-through share and one share
purchase warrant, with each warrant to entitle the holder to purchase one
additional common share at a pric e of $0.15 for a period of two years from
closing; and
(b) up to 1,500,000 ordinary units at $0.07 per unit , to raise gross proceeds of up to
$105,000, each unit to consist of one com mon share and one share purchase
warrant, with each warrant to entitle the holder to purchase one additional
common share at a price of $0.15 for a period of two years from closing.
The proceeds from the flow -through po rtion of the Offering will be used to conduct diamond
drilling on Bonanza ’s Shag property to test IP chargeability and seismic geophy sical targets
identified by Bonanza ’s 2021 geophysical exploration programs , with the proceeds from the
ordinary unit portion of the Offering will be used for working capital purposes.
All of the securities to be issued pursu ant to the Offering, which is subject to TSX Venture
Exchange acceptance, including an y shares that may be issued pursuant to the exercise of the
warrants referred to h erein, will be subject to a hold period in Canada of four months plus one
day from closing.
Bonanza is also pleased to report that the previously announced IP survey on the Frog Property
has been completed . The survey consisted of surveying seventeen 2 km long lines spaced 200
meters apart (34 line km) covering an area of 6 square kilometers where historical 1970’s and
1980’s IP, gravity and magnetic surveys as well as trenching and soil sampling have identi fied
significant poly-metallic sulfide mineralization.
Three separate chargeability anomalies were identified and 8.1 line km of detailed IP surveying
was subsequently conducted on infill lines spaced 100 meters apart over the most significant
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chargeability anomaly that measures 1 km by 1.5 km.
When the IP surveying was completed a geological crew employed by C.J. Greig and Associates
Ltd. was mobilized to the Frog property to conduct a soil, rock and stream silt sampling survey
as well as geological mapping. A total of 1,636 soil samples were collected at 100 meter intervals
on lines 100 meters apart over a grid measuring 4 kilometers by 3 kilometers.
The soil samples were analyzed in the field by a portable XRF analyzer and the results indicate
that a significant lead, zinc, manganese soil anomaly occurs over an area measuring 1 kilometer
by 1.5 kilometers that also includes more subdued copper values. This anomaly remains open to
the southeast.
The anomalous soil values occur both within a strongly altered muscovite granodiorite body and
in sedimentary quartzites and phyllites that flank it to the north and east.
The Frog property is located in the northern portion of the Golden Triangle of northwestern BC
approximately 170 km east of Dease Lake and 70 km east of the Kutcho Copper project and Giga
Metals Corporation’s Turnagain nickel property. Copper Fox’s Eaglehead porphyry copper
project is also west of the Frog property north of the Turnagain nickel project.
The original 1950’s mineral discover y on the Frog property was an area containing massive
galena, sphalerite, chalcopyrite and rhodochroisite frost heaved boulders measuring roughly 180
meters by 120 meters at the head of a broad, open cirque basin. Later in the 1970’s and 1980’s IP,
ground magnetic and gravity surveys as well as soil sampling conducted by major mining
companies Conwest and Cominco located significant geophysical anomalous targets coincident
with a strong lead, zinc, silver and manganese soil anomaly measuring one km by one km in size,
that remained open in several directions.
In 1995 the BC Geologic Survey and the Geological Survey of Canada (the “GSC”) conducted an
airborne magnetic survey over a large area of northern BC that covered the area where the Frog
property is located. The results of this survey outlined a large magnetic high anomaly measuring
ten km in diameter that was centered on the Frog property where the massive sulfide boulders
are located and the historical geophysical and soil geochemical surveys had been conducted.
The large a irborne magnetic anomaly and visible widespread colored alteration zones indicate
there is potential for the existence of underlying porphyry copper mineralization on the Frog
property. A GSC regional geological map shows the Frog property is underlain by late
Proterozoic age Ingenika Group sedimentary rock formations, one of which is a limestone unit
which indicates the possibility for massive sulfide skarn and/or manto style lead- zinc-silver
mineralization to occur on the property, possibly represented by the massive sulfide boulders.
Qualified Person
Technical information in this news release has been approved by Christopher Graf, P. Eng., the
Vice-President Exploration, as well as a Director of Bonanza and a Qualifi ed Person for the
purposes of National Instrument 43-101.
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For further information, please contact:
Bonanza Mining Corporation
Suite 105 – 1008 Beach Avenue
Vancouver, B.C. V6E 1T7
Attention: Alfredo De Lucrezia, President, Chief
Executive Officer and Director
Tel: 604-619-0225
Email: [email protected]
or
Chris Graf, Vice-President Exploration
Tel: 250-429-3572
Email: [email protected]
Cautionary Statements
This press release contains "forward -looking information" within the meaning of applicable securities
laws. Readers are cautioned to not place undue reliance on forward -looking information. Actual results
and developments may differ materially from those contemplated by these statements. The statements in
this press release are made as of the date of this press release . The Company undertakes no obligation to
update forward-looking information, except as required by securities law.
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 press
release.