Big Ridge Gold Announces Non-Binding Letter of Intent for the Option of the Destiny Gold Project to Caprock Mining Corp.
Big Ridge Gold Announces Non-Binding Letter
of Intent for the Option of the Destiny Gold
Project to Caprock Mining Corp.
Toronto, Ontario--(Newsfile Corp. - September 24, 2024) - Big Ridge Gold Corp. (TSXV: BRAU)
(OTCQB: ALVLF) ("Big Ridge" or the "Company") is pleased to announce it has entered into a non-
binding Letter of Intent (the "LOI") with Caprock Mining Corp. (CSE: CAPR) ("Caprock") for the option of
its 100% owned Destiny gold property, located in Despinassay Township, 75km Northeast of Val d'Or,
Quebec.
Terms of the Transaction
Subject to a definitive option agreement, Caprock must make the following cash payments and share
issuances to Big Ridge to earn a 100% interest in the Destiny gold property:
Issue 8,000,000 common shares in the capital of Caprock on the closing date;
Pay $100,000 in cash and issue $250,000 in shares on or before the first anniversary of the option
agreement;
Pay $250,000 in cash and issue $350,000 in shares on or before the second anniversary;
Pay $400,000 in cash and issue $700,000 in shares on or before the third anniversary;
Incur aggregate exploration expenditures of $2,450,000 over the term of the option agreement;
Upon earning 100% interest in the Destiny gold property, Big Ridge will retain a 1% net smelter
return royalty (NSR) on the property, subject to a $1.0 million buy-back right in favour of Caprock.
Mike Bandrowski, President & CEO of Big Ridge commented: "We are excited to work with the
Caprock Mining team and believe there is significant potential in the Destiny Gold Project. With the
recent move in the price of gold and renewed attention coming into the precious metal exploration
space, we believe this is the perfect time to see the Destiny Gold Project move forward. Caprock's
exploration team has advanced several world class projects in North America and is the right team to
champion the Destiny Gold Project."
There can be no assurance that the Company and Caprock will enter into a definitive option agreement
in a timely fashion, or at all, and the Company will provide a further update on timing in due course. All
shares of Caprock to be issued to the Company under the option agreement will be subject to a four-
month statutory hold period.
About Hope Brook
The Hope Brook Gold Project is an advanced stage, high-grade gold project that produced 752,162
ounces of gold from 1987 - 1997. Initial production consisted of an open pit before moving to
underground mining. Hope Brook operated using both heap leach (1987 -1990) and conventional
cyanidation milling methods (1989-1997) with a later inclusion of flotation concentration to recover
copper (1991). Government records indicate that gold recoveries from milling ranged between a low of
78.8% in 1987 and a high of 85.9% in 1989. Government and company annual reports indicate that gold
recoveries ranged between a low of 82.1% in 1994 and a high of 89.83% in 1996 following a change of
ownership. Copper flotation produced a concentrate at approximately 22% Cu and 34.3 g/t Au for
shipment in 1992.
Hope Brook hosts an Indicated gold resource totalling 16,190,000 tonnes grading 2.32 grams per tonne
gold for 1.2 million ounces and Inferred resources totalling 2,215,000 tonnes grading 3.25 grams per
tonne gold for 231,000 ounces based on a 0.4 and 2.0 gram per tonne cut-off grades for open pit and
underground resources respectively using a long-term gold price of US$1,750.
The Hope Brook gold deposit is a high-sulfidation epithermal gold deposit hosted in the Proterozoic
aged Whittle Hill Sandstone and is intruded by a Late Proterozoic quartz-feldspar porphyry sill-dike
complex of the Roti Intrusive Suite. The deposit is located adjacent to and within an extensive advanced
argillic alteration envelope which includes pyrophyllite, kaolinite, andalusite, and alunite. The principal
gold mineralization occurs in a buff-colored massive, vuggy silicic alteration with an associated, less
developed grey silicic alteration with pyrite, chalcopyrite and lesser bornite accessory minerals. Gold
mineralization is also found with pyrite in units of advanced argillic alteration adjacent to or near silicic
alteration horizons. The altered and mineralized zone is cut by mafic dykes whose contacts are often
mineralized. All the altered and mineralized sequences and the intruded dykes have been folded.
Hope Brook is located 85 kilometers east of Port aux Basques, Newfoundland. The project has well
maintained infrastructure on site, including an operational 28-person camp, an 1,100-meter airstrip, ice-
free docking facility and importantly, connection to the provincial electrical power grid via an on-site
substation.
About Big Ridge Gold Corp.
Big Ridge Gold Corp. is an exploration and development company managed by a disciplined and
experienced team of officers and directors. The Company is committed to the development of advanced
stage mining projects using industry best practices combined with strong social license from our local
communities. Big Ridge owns an 80% interest in the Hope Brook Gold Project, located in Newfoundland
and Labrador. Big Ridge also owns a 100% interest in the highly prospective Oxford Gold Project
located in Manitoba and the Destiny Gold Project in Quebec.
Acknowledgement
Big Ridge acknowledges and appreciates the Newfoundland and Labrador Ministry of Natural
Resources' financial support of the Company's 2023 exploration programs through the Junior
Exploration Assistance (JEA) Program.
For more details regarding the Company's projects, please visit our website at
www.bigridgegold.com
ON BEHALF OF THE BOARD,
Mike Bandrowski,
President & CEO
Mike Bandrowski,
President & CEO
BIG RIDGE GOLD CORP.
18 King St. East, Suite 1400
Toronto, ON, M5C 1C4
Tel: 416-540-5480
Email:
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
release.
Cautionary Note Regarding Forward-Looking Statements
This news release includes certain "forward-looking information" and "forward-looking statements"
(collectively "forward-looking statements") within the meaning of applicable Canadian securities
legislation. These forward-looking statements are made as of the date of this news release. Forward-
looking statements are frequently, but not always, identified by words such as "expects", "anticipates",
"believes", "plans", "projects", "intends", "estimates", "envisages", "potential", "possible", "strategy",
"goals", "objectives", 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.
Forward-looking statements in this news release relate to future events or future performance and
reflect current estimates, predictions, expectations, or beliefs regarding future events, and include,
without limitation, statements with respect to Big Ridge's intentions with respect to Caprock's shares.
All forward-looking statements are based on Big Ridge's and its employees' current beliefs as well as
various assumptions made by them and information currently available to them. 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. Forward-looking statements reflect the
beliefs, opinions, and projections on the date the statements are made and are based upon a number
of assumptions and estimates that, while considered reasonable by the respective parties, are
inherently subject to significant business, economic, competitive, political, and social uncertainties,
and contingencies. Many factors, both known and unknown, could cause actual results, performance,
or achievements to be materially different from the results, performance or achievements that are or
may be expressed or implied by such forward-looking statements and the parties have made
assumptions and estimates based on or related to many of these factors. When relying on our
forward-looking statements to make decisions with respect to Big Ridge, investors and others should
carefully consider the foregoing factors and other uncertainties and potential events. Big Ridge does
not undertake to update any forward-looking statement, whether written or oral, that may be made from
time to time by the Company or on our behalf, except as required by law.
To view the source version of this press release, please visit
https://www.newsfilecorp.com/release/224342