X-Terra Resources announces the results of its due diligence exploration program on New Brunswick gold properties
X-Terra Resources announces the results of
its due diligence exploration program on New
Brunswick gold properties
ROUYN-NORANDA, QC
, Dec. 5, 2018 /CNW Telbec/ - X-Terra Resources Inc. (TSXV: XTT)
(FRANKFURT: XTR) ("
X-Terra Resources
") is pleased to announce the results of its due diligence
exploration program on the Grog Brook and Northwest properties located in the province of
New
Brunswick
(the "
Properties
") that are subject to an exploration and option agreement dated
November 16, 2018 among X-Terra Resources, NBGold Inc. and
Tim Lavoie
(the "
Option
Agreement
") pursuant to which X-Terra Resources may acquire a 100% ownership interest in the
Properties (see press release of November 19, 2018). This due diligence exploration program,
carried out in
October 2018
, consisted of a reconnaissance program over the Properties and was
part of X-Terra Resources' due diligence on the Properties.
The ‘’layered’’ aspect of the veins appears to be a “crack and fill’’ setup with local open space zones
in the central part of the vein. Visible gold has been frequently observed along a specific pulse (CNW
Group/X-Terra Resources Inc.)
The objective of this program was to confirm the gold setting and to observe the geological
characteristics of the rocks. Additionally, it was to confirm the potential of a large disseminated gold
system at Grog Brook where 14 of 28 samples returned anomalous gold values (0.1 g/t Au).
Samples were collect over a length of 390 non continuous metres. Results up to
2.94 g/t Au
were
obtained with the overall average being
0.45 g/t Au
. The top ten results averaged
1.14 g/t Au
. The
best gold values were obtained over the Northwest property (comprised of the former Dome,
Bonanza and Rim properties) and include
1,205.06 g/t Au
at the Rim sector of the Northwest
property,
149.97 g/t Au
at Bonanza and
47.88 g/t Au
at the Dome sector of the Northwest
property.
HIGHLIGHTS
A total of 43 samples were collected during the two days of the due diligence exploration program.
Fifteen samples were collected over the Northwest property and 28 over the Grog Brook property.
Northwest property (Dome, Bonanza and Rim sectors)
The technical team spent the first part of the due diligence exploration program focusing on the
Northwest property. The gold potential at Northwest is a known yet misunderstood occurrence,
first discovered in 2012 when a 16-tonne bulk sample of the Bonanza vein returned 24.37 g/t Au
(ref Assessment Report
November 2015
). Gold appears to be associated with the quartz vein.
In addition, trace to near 1% of chalcopyrite and pyrite are locally observed, as well as some
malachite. The Bonanza vein is located 127 meters NNE of Dome vein. The vein is also
boudinaged but not folded. From what the geological team observed in the bulk pit, the vein is
20 to 40 centimetres in width and 2.5 metres in length.
The following table summarizes the results of the grab samples collected on the Dome and Bonanza
sectors of the Northwest property.
Table 1: Dome and Bonanza sectors of the Northwest property gold results and observations.
Sample
UTME
UTMN
Au
Au
Au
g/t
g/t >5.0
g/t MS
SAA
Gravimetric
Gravimetric
TMT-G5B
TMT-G5C
TMT-G5C
2011 Bonanza
630 760
5 265 340
116.69
111.55
2012 Bonanza
630 760
5 265 340
124.17
155.34
2013 Bonanza
630 760
5 265 340
149.97
2014 Dome
630 703
5 265 226
32.88
2015 Dome
630 703
5 265 226
45.16
50.61
The Rim vein is located 4.5 kilometres to the NNE of the Dome and Bonanza sectors of the
Northwest property and seems to be concordant to the main foliation (and beddings). It is slightly
boudinaged and not folded. The thickness of the vein ranges from 10 to 40 centimetres in width and
is exposed for more than 200 metres. The ''layered'' aspect of the veins appears to be a "crack and
fill'' setup with local open space zones in the central part of the vein. Visible gold has been frequently
observed along a specific pulse (see image below).
Due to the poor quality of the trench at surface, the technical team decided to sample the vein at
regular intervals at the surface over 19.9 metres to confirm if gold mineralization is continuous. The
average of the
nine grab samples is 125.44 g/t Au over the 19.9 metres
. Table 2 below
summarizes the intervals of grab samples and associated values. In addition, located in a "pinch
out'' with a displacement of 20 centimetres along the quartz vein, a sample returned
1,205.06 g/t
Au.
The Dome and Bonanza sectors of the Northwest property and the RIM sector are separated by
approximately 4.5 kilometres and showed similar orientation. The area between them and
surrounding them have not been explored.
The following table summarizes the results of the grab samples on the Rim sector of the Northwest
property.
Table 2: Rim sector gold results and observations.
Sample
UTME
UTMN
Au
Au
Au
g/t
g/t >5.0
g/t MS
SAA
Gravimetric
Gravimetric
TMT-G5B
TMT-G5C
TMT-G5C
2001
207.61
2002
12.88
13.18
2003
65.26
60.45
2004
149.03
2005
32.95
2006
378.22
2007
4.53
2008
247.15
2009
33.56
2010
1,205.06
Grog Brook property
The Grog Brook area was and remains exposed due to recent selective cutting, which originally
lead to the discovery. Trenches completed in 2016 and 2017 showed from east to west a
sedimentary sequence going from siltstone to sandstone and fine to coarse grain
conglomerates locally interbedded with thinner siltstone and quartzite. The layers are sub-
vertical on the east (siltstone) and shift horizontally in the conglomeratic sequence (antiform) to
the west. The sedimentary package is intruded by two (observed) felsic dykes. The first one
lies around the contact between the siltstone and the sandstone/conglomerate package. This
dyke is highly altered in sericite and contains 1% to 15% pyrite and trace to 2% arsenopyrite
and possibly stibnite. Sediments immediately in contact highlighted intense alteration and some
mineralization. The dyke can be followed over 430 meters (open on both sides) and contains
gold (up to 1.9 g/t Au). The best result was
1.84 g/t Au
on the margin between the dyke and
fine grain conglomerates.
The other observed dyke is exposed only in one trench that goes farther to the east and is
entirely hosted by the siltstone. Formally called the ''pink dyke'', it was sampled for the first time
and returned
0.39 g/t Au
.
Finally, a third mineralized zone occurs about 150 metres west of the main mineralized intrusive
dyke. This zone is entirely hosted by the conglomerates and consists of quartz veining, as well
as breccias and is rich in pyrite and arsenopyrite as well as gold. Gold values of up to 3.7 g/t
Au can be followed over 370 metres on a strike of 310 degrees. The best value obtained in that
location was
2.94 g/t Au
in a quartz breccia where cavities are rich in pyrite and some minor
''stibnite''.
The following table summarizes the results of the grab samples on the Grog Brook property.
Table 3: Grog Brook property gold results and observations.
Sample
UTME
UTMN
Au g/t
SAA TMT-G5B
2016
653430
5293071
1.41
2017
653451
5292990
0.39
2018
653426
5293069
1.47
2019
653426
5293070
0.07
2020
653408
5293351
0.05
2021
653409
5293362
0.05
2022
653405
5293359
0.04
2023
653403
5293358
0.02
2024
653412
5293354
1.84
2025
653413
5293353
0.51
2026
653399
5293151
0.35
2027
653400
5293151
0.01
2028
653251
5293143
0.01
2029
653253
5293144
0.01
2030
653255
5293145
0.05
2031
653255
5293139
0.02
2032
653256
5293140
0.02
2033
653264
5293137
0.91
2034
653268
5293134
0.48
2035
653270
5293135
0.08
2036
653267
5293140
0.03
2037
653265
5293143
0.15
2038
653271
5293151
1.12
2039
653275
5293142
2.94
2040
653254
5293350
0.16
2041
653419
5293337
0.11
2042
653416
5293371
0.05
2043
653421
5293366
0.20
Note that grab samples are selective by nature and unlikely to represent average grades.
Quality assurance/quality control.
X-Terra Resources adheres to a strict quality assurance and quality control program with regard to
core handling, sampling, transportation of samples and lab analyses. Samples selected for assay
were shipped via secure transportation to the Techni-Lab (S.G.B. Abitibi Inc.) preparation facility in
Ste-Germaine Boulé, QC. Rock samples were assayed for gold by standard fire assay on 30-gram
fractions with atomic absorption (TMT-G5B) or gravimetric finish (TMT-G5C) at Techni-Lab (S.G.B.
Abitibi Inc.). Samples with visible gold or above 5,000 ppb Au were further analyzed by metallic
screen with fire assay (TMT-G5C). The exploration program is designed and the results are
interpreted by qualified persons using a quality assurance/quality control program based on industry
best practices, including the use of standards and blanks for every 24 samples.
Mr.
Alex MacKay
, P. Geo of AMK Geoscience Ltd., who is acting as X-Terra Resources' qualified
person under
National Instrument 43
101 Standards of Disclosure for Mineral Projects
("
NI 43-
101
"), is registered in the Provinces of
Nova Scotia
and
New Brunswick
. Consultant for X-Terra
Resources, he is the qualified person for the Properties under NI 43
101 responsible for the
technical contents of this news release, and has approved the disclosure of the technical information
contained herein.
The transaction contemplated by the Option Agreement has been conditionally approved by the TSX
Venture Exchange and is subject only to compliance with standard requirements of the TSX Venture
Exchange and upon the closing of an equity private placement by X-Terra Resources in a minimum
amount of
$1.5 million
(see press release of November 19, 2018). Any failure by X-Terra Resources
to comply with the standard requirements of the TSX Venture Exchange or to complete the
foregoing equity financing would result in the Option Agreement being terminated. The closing of the
transaction contemplated by the Option Agreement is expected to occur on or about December 15,
2018.
About X-Terra Resources Inc.
X-Terra Resources is a resource company focused on acquiring and exploring precious metals and
energy properties in
Canada
.
Forward-Looking Statements
This news release contains statements that may constitute "forward-looking information" within the
meaning of applicable Canadian securities legislation. Forward-looking information may include,
among others, statements regarding the future plans, costs, objectives or performance of X-Terra
Resources, or the assumptions underlying any of the foregoing. In this news release, words such
as "may", "would", "could", "will", "likely", "believe", "expect", "anticipate", "intend", "plan",
"estimate" and similar words and the negative form thereof are used to identify forward-looking
statements. Forward-looking statements should not be read as guarantees of future performance
or results, and will not necessarily be accurate indications of whether, or the times at or by which,
such future performance will be achieved. No assurance can be given that any events anticipated
by the forward-looking information will transpire or occur, including the development of the
Properties, or if any of them do so, what benefits X-Terra Resources will derive from the
Properties. Forward-looking information is based on information available at the time and/or
management's good-faith belief with respect to future events and are subject to known or unknown
risks, uncertainties, assumptions and other unpredictable factors, many of which are beyond X-
Terra Resources' control. These risks, uncertainties and assumptions include, but are not limited
to, those described under "Financial Instruments" and "Risk and Uncertainties in X-Terra
Resources' Annual Report for the fiscal year ended December 31, 2017, a copy of which is
available on SEDAR at
www.sedar.com
, and could cause actual events or results to differ
materially from those projected in any forward-looking statements. X-Terra Resources does not
intend, nor does X-Terra Resources undertake any obligation, to update or revise any forward-
looking information contained in this news release to reflect subsequent information, events or
circumstances or otherwise, except if required by applicable laws.
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
the release.
Website:
www.xterraresources.com
SOURCE
X-Terra Resources Inc.
View original content to download multimedia:
http://www.newswire.ca/en/releases/archive/December2018/05/c3951.html
%SEDAR: 00035962E
For further information:
X-Terra Resources Inc., Mr. Michael Ferreira, President & Chief
Executive Officer, 139 Québec Avenue, Suite 202, Rouyn-Noranda, Québec, J9X 6M8, Telephone:
819-762-4101 | Fax: 819-762-0097, E-mail: [email protected]
CO: X-Terra Resources Inc.
CNW 08:31e 05-DEC-18