DFR Gold Inc. Announces Exercise of Wuo Land 2 Option
DFR Gold Inc. Announces Exercise of Wuo Land 2 Option
Vancouver, B.C. (9 February 2024) – DFR Gold Inc. (TSX‐V:DFR) (“DFR” or the “Company”)
confirms that it has exercised its option to acquire the Wuo Land 2 exploration license (“Wuo
Land 2”) that comprises part of its Cascades Project (“Cascades” or the “Project”) in Burkina
Faso for a payment of US$300,000.
As announced on 11 March 2022, the Company entered into an option agreement to acquire
the 243km2 Wuo Land 2 exploration license to gain full control of the 30km strike length of
identified mineralization at Cascades. Wuo Land 2 hosts significant recent discoveries, such
as Far East, Sina Yar and TT13‐West as well as additional targets that DFR intends to explore
in the near future, showing the consistent mineralisation across the Project area. DFR owns
80% of Cascades, subject to spending US$18,000,000 on the Project, with Panthera Resources
Plc holding the remaining interest.
The US$300,000 payment has been funded via a loan from Spirit Resources SARL (the “Spirit
Loan”), a privately held investment company controlled by Jean‐Raymond Boulle, which holds
39.1% of DFR’s outstanding shares. The Spirit Loan carries an eight percent (8%) annual
interest rate and is repayable in full on January 31, 2025 (the “Final Repayment Date”). DFR
shall prepay the Spirit Loan upon receipt of the proceeds of any debt, equity or other financing
in excess of US$2,000,000 that occurs prior to the Final Repayment Date.
This Spirit Loan constitutes a related party transaction (the “Transaction”) as defined under
Multilateral Instrument 61‐101 – Protection of Minority Security Holders in Special
Transactions (“MI 61‐101”). The Transaction is exempt from the formal valuation
requirements of Section 5.4 of MI 61‐101 pursuant to Subsection 5.5(b) of MI 61‐101 as no
securities of the Company are listed on certain exchanges specified by MI 61‐101, and exempt
from the minority shareholder approval requirements of Section 5.6 of MI 61‐101 pursuant
to Subsection 5.7(1)(a) of MI 61‐ 101 as, at the time the Transaction was agreed to, neither
the fair market value of the subject matter of the Transaction nor the consideration therefor
exceeded 25% of the Company’s market capitalization.
CEO John McGloin said: “Exercising this option demonstrates our commitment to progressing
the Cascades project, which we believe shows incredible potential. Our recent work has
resulted in three new discoveries all within the Wuo Land 2 license area where we believe we
are just scratching the surface of the 30km long mineralised corridor.”
About the Wuo Land 2 License
Wuo Land 2 is contiguous with and almost completely surrounds the Wuo Land License where
the company declared a Maiden Mineral Resource in October 2021. Remote Sensing and
drilling results to date point to a potentially much larger mineralised system across the
combined Wuo Land and Wuo Land 2 licenses than was originally recognised on the Cascades
Project.
Following the option agreement to acquire Wuo Land 2 in March 2022, the Company
embarked upon a programme of systematic target delineations on multiple parallel shear
structures defined from remote sensing data.
An initial 5,000 metre drilling programme at Cascades in 2022 intersected significant
mineralisation at the new TT13 target some 6km east of the Daramandougou and Wuo Ne
resources areas. A follow‐on 5,000 metre programme in 2023 outlined significant additional
resource potential at newly defined Sina Yar and Far East targets where significant recent
artisanal mining activity has occurred.
At Sina Yar, 1.7km north of TT13, DFR’s 2023 first‐pass reverse circulation drilling programme
has discovered what appears to be a major new zone. Ten drill holes totalling 903m have been
completed at the target and significant mineralisation was intersected in each hole drilled. In
particular, three consecutive holes testing 250m of strike length of the main north‐south
trending structure intersected significant widths of mineralisation, including 34m (from 50m
downhole depth) at a grade of 1.83g/t plus 6m (from 23m) at a grade of 1.14 g/t in hole CS23‐
RC077.
At Far East, some 2.5km east of Daramandougou, a wide mineralised zone was intersected,
including 48 metres at 0.42g/t Au. Resource delineation step‐out and down‐dip drilling are
part of the next planned drill programme at Sina Yar, Far East.
ENDS
DFR GOLD INC.
John McGloin, CEO
Contact: [email protected]
Michael Oke/Andy Mills: +44 20 7321 0000
Aura Financial LLP: www.aura‐financial.com
Notes to Editors:
DFR Gold Inc. is a TSX Venture Exchange listed exploration, and mine development company focused
on gold in West Africa. DFR holds interests in a portfolio of West African gold exploration projects
including the highly prospective Cascades gold project (“Cascades”) in Burkina Faso. Cascades has a
Mineral Resource* prepared in accordance with NI 43‐101 comprising 5.41 million tonnes of indicated
resources at an average grade of 1.52g/t Au for a total 264,000 ounces of gold: and 6.93 million tonnes
of inferred resources at an average grade 1.67g/t Au for a total of 371,000 ounces of gold. Please see
the Company’s technical report titled “Amended and Re‐stated Technical Report on the Labola Project
Burkina Faso” dated April 2, 2022, with an effective date of April 20, 2022, for further information
regarding Cascades. This report can be located at www.dfrgold.com.
In Madagascar, DFR has an advanced high grade hard rock zircon exploration prospect located in the
west of the country, approximately 220km east of the port of Maintirano and close to a state road.
DFR acquired Beravina from Pala Investments and Austral Resources in 2016.
Website: www.dfrgold.com
The Company’s public documents may be accessed at www.sedarplus.ca
Neither the TSX‐V 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.
Additional Mineral Resource Estimate Disclosures
1. *Mineral Resources, which are not Mineral Reserves, do not have demonstrated economic
viability. The estimate of Mineral Resources may be materially affected by environmental,
permitting, legal, marketing, or other relevant issues. The Mineral Resources in this note were
reported using CIM (2014) Standards on Mineral Resources and Reserves, Definitions and
Guidelines and adopted by CIM Council.
2. The quantity and grade of reported Inferred resources in this estimation are uncertain in
nature and there has been insufficient exploration to define this Inferred Resource as an
Indicated or Measured Mineral Resource. It is uncertain if further exploration will result in
upgrading the Inferred Resource to an Indicated or Measured Mineral Resource category.
3. The Mineral Resource has been constrained by an open pit evaluation using a gold price of
US$1900 per ounce, and then reported at a cut‐off of 0.5 g/t Au.
4. Contained metal and tonnes figures in totals may differ due to rounding.
Forward‐Looking Statements:
This release contains certain “forward‐looking information” within the meaning of applicable
Canadian securities legislation. All statements other than statements of historical fact in this release
that address activities, events or developments that DFR expects or anticipates will or may occur in
the future are forward‐looking statements or information. Often, but not always, forward‐looking
information can be identified by the use of words such as “aim”, “aspire”, “strive”, “will”, “expect”,
“intend”, “plan”, “believe” or similar expressions as they relate to DFR. Forward‐ looking information
is subject to a variety of risks and uncertainties which could cause actual events or results to materially
differ from those reflected in the forward‐looking information.
There are a number of important factors that could cause DFR’s actual results to differ materially from
those indicated or implied by forward‐looking statements and information. Such factors include,
among others: the ability to obtain requisite regulatory approvals; the ability to finance the drilling
campaign; commodity prices; the gold exploration and mining industry in general; the potential
impact of the announcement on relationships; including with regulatory bodies, employees; suppliers,
customers and competitors; changes in general economic, business and political conditions, including
changes in the financial markets; changes in applicable laws; and compliance with extensive
government regulation. Should one or more of these risks, uncertainties or other factors materialize,
or should assumptions underlying the forward‐looking information or statement prove incorrect,
actual results may vary materially from those described herein as intended, planned, anticipated,
believed, estimated or expected.
DFR cautions that the foregoing list of material factors is not exhaustive. When relying on DFR’s
forward‐looking statements and information to make decisions, shareholders should carefully
consider the foregoing factors and other uncertainties and potential events. DFR has assumed that
the material factors referred to in the previous paragraph will not cause such forward looking
statements and information to differ materially from actual results or events. However, the list of
these factors is not exhaustive and is subject to change and there can be no assurance that such
assumptions will reflect the actual outcome of such items or factors. The forward‐looking information
contained in this release represents the expectations of DFR as of the date of this release and,
accordingly, is subject to change after such date. Readers should not place undue importance on
forward looking information and should not rely upon this information as of any other date. While
DFR may elect to, it does not undertake to update this information at any particular time except as
required in accordance with applicable laws.