Engineer GOLD Mines Ltd. Announces Property Purchase Agreement with C2C GOLD Corp.
ENGINEER GOLD MINES LTD. ANNOUNCES PROPERTY PURCHASE AGREEMENT
WITH C2C GOLD CORP.
Vancouver, British Columbia – December 03, 2020: Engineer Gold Mines Ltd. (the
“Company” or “Engineer” ) (TSXV: EAU) is pleased to announce that it has entered into a
property purchase agreement dated November 26, 2020 (the “Purchase Agreement”) with C2C
Gold Corp. (“C2C”) (formerly Taku Gold Corp.) to acquire (the “Acquisition”) a 100% interest in
forty-one mineral tenures (the “Property”) situated within the Atlin Mining Division of British
Columbia.
The closing of the Acquisition is subject to the approval of TSX Venture Exchange. Under the
Purchase Agreement, Engineer is to provide the following aggrega te consideration to C2C at
closing:
a) Payment of $100,000 on or before July 31, 2020 which receipt has been acknowledged;
b) Payment of $100,000 on or before February 26, 2021;
c) Issuance of 2,000,000 common shares of Engineer within five days of TSX Venture
Exchange (“TSXV”) approval; and
d) Payment of 1% net smelter return royalty on the property.
The 1,070 hectare Tag property covers the 025 or Main zone , which contains, as defined by the
National Instrument (“NI”) 43 -101 Standards for Disclosure for Mineral Projects, an historical
mineral resource estimate including 250,000 tonnes of 2.97 g/t Au (cut) and 12.09 g/t Ag (cut),
indicated and 400,000 tonnes of 2.98 g/t Au (cut) and 9.91 g/t Ag (cut) inferred, using a
minimum core length of 2.0 meters and a cut-off grade of 3.0 g/t gold equivalent (combined gold
and silver values), calculated on silver to gold ratio of 59.927. The resource is taken from a
technical report filed on SEDAR entitled “Technical Report on Resource Estimates for the Tag
Property, Northern British Columbia”, prepared for CZM Capital Corporation by Reddick
Consulting Inc. and dated December 29, 2009.
Engineer Gold Mines’ president, Andrew H. Rees stated “The Tag acquisition will be an exciting
development for the Company as it is a contiguous expansion of the north end of the Engineer
Project. The significant exploration and development work already completed at Tag will provide
a weal th of data to Engineer’s technical team and immediately enhance the geological
understanding of the Engineer Project. The Company intends to complete the work necessary
to classify the historic resource estimate as a current mineral resource.”
Practices c onsistent with CIM (2005) were applied to the generation of the historical mineral
resource estimate and the parameters of the modeling are fully described in the NI 43 -101
report referenced above. The estimate uses a vertical cross -sectional polygonal method and is
based on 28 diamond drill holes within a 900 meter long extent. It appears to have economic
potential that would be best suited for development by the use of underground mining methods.
A qualified person has not done sufficient work to classify the historical estimate as a current
mineral resource based on revised practices as per CIM (2014) and should not be treated or
relied upon as such. The Company considers the NI 43 -101 report to be relevant given that no
additional work of significance ha s been completed since the issuance of the historical Mineral
Resource Estimate.
Although old hand trenches were later found, modern exploration on the property was initiated
by the discovery of visible gold in an outcrop at the southern end of a 200 to 205 degree
trending, steep westerly dipping fault zone (025FZ) by government geologists in 1987 -8, from
which a sample returned 5.35 g/t Au and 19.0 g/t Ag (Main zone). The 025FZ structure is easily
traced by a strong lineament along a distance of 6.5 kil ometers within the property boundaries.
Work to date on the Tag property includes prospecting and mapping, petrography, fluid
inclusion and scanning electron microscope studies, rock and soil geochemistry, airborne and
ground geophysics, trenching, 11,476m of drilling in 69 drill holes and the historical NI 43 -101
resource estimate.
Regionally, the Tag property is situated at a major flexure within the deep seated, long lived
Llewellyn fault zone. The flexing forms dilational openings, favourable for the formation of veins.
The Main zone consists of quartz -minor carbonate veins, stockworks and breccias, commonly
with drusy and crustiform textures with fine -grained disseminations and thin veinlets of pyrite
and arsenopyrite throughout the fault zone and in the adjacent wall rock contacts. Alteration
consists of silica -carbonate with lesser chlorite, sericite and mariposite. The mineralization is
hosted by well -bedded sedimentary host rocks including argillites, siltstones, greywackes and
conglomerates. Both the mineralization and host rocks are similar to that within the historical
Engineer Gold mine workings.
Additional potential exists at depth on the Main zone, in other areas along the 025FZ structure
and on the Barney zone, about 3.5 km north of the Main zone. The Barney zone comprises a 5
to 25m wide zone about 250m long. It consists of quartz breccia zones mineralized with pyrite,
pyrrhotite and chalcopyrite, associated with sericite -carbonate altered zones along the margins
of a quartz diorite stock apparently cut by the 025FZ. A grab sample reportedly returned 7.8 g/t
Au.
The southern end of the complex series of fault and shear zones, which comprises the 025FZ
structure, exhibits brittle deformation with epithermal style mi neralization, which is confirmed by
fluid inclusions. Further north, and along the western strands of the fault, more ductile
deformation is evident with listwanite alteration, suggestive of structurally hosted orogenic lode
gold. Potential exists for both mineral deposit types.
A site visit was completed, and the technical information in this news release reviewed, by Jean
Pautler, P.Geo., a qualified person with respect to NI 43-101.
About Engineer Gold Mines Ltd.
Engineer Gold Mines is focused on reestablishing gold production at the Company’s 100% -
owned, historical high-grade Engineer Gold Mine, 32km southwest of Atlin, BC. Exploration and
development work has identified numerous high-grade vein and shear-hosted bulk-tonnage gold
targets over the Company’s 25 km long (18,319 hectare) contiguous claim grouping, which
includes prospects: Wann River, 5 km to the southwest; Happy Sullivan, 3 km to the northeast;
and the TAG, 7 km to the north of the historical Engineer Mine.
For additional information please visit the company website at www.engineergoldmines.com
On Behalf of the Board of Directors
Engineer Gold Mines Ltd.
“Andrew H. Rees”
Mr. Andrew H. Rees
President
Contact Information:
Andrew H. Rees: 604-505-3739
Email: [email protected]
Cautionary Note Regarding Forward-Looking Statements
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is def ined in
the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy
of this release. This news r elease contains certain forward -looking statements which involve
known and unknown risks, delays, and uncertainties not under the control of Engineer Gold
Mines Ltd. which may cause actual results, performance or achievements of Engineer Gold
Mines Ltd. to be materially different from the results, performance or expectation implied by
these forward looking statements. By their nature, forward -looking statements involve risk and
uncertainties because they relate to events and depend on factors that will or may occur in the
future. Actual results may vary depending upon exploration activities, industry produc tion,
commodity demand and pricing, currency exchange rates, and, but not limited to, general
economic factors. Neither the TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in the policies of the TSX Venture Exchange) acce pts responsibility for the
adequacy or accuracy of this release.