Gambier GOLD Enters into Option to Purchase Detour WEST Property and Provides Update ON Private Placement of Units
GAMBIER GOLD ENTERS INTO OPTION TO PURCHASE
DETOUR WEST PROPERTY AND PROVIDES UPDATE
ON PRIVATE PLACEMENT OF UNITS
VANCOUVER,
BC
–
July
27,
2020
–
Gambier
Gold
Corp.
(
TSX-V:
GGAU
)
(the
“Company”
)
is
pleased
to
announce
that
it
has
entered
into
a
property
option
agreement
(the
“
Option
Agreement
”)
with
Altus
Capital
Partners
(“
Altus
”)
and
Luke
Schuss
(“
Schuss
”,
together
with
Altus,
the
“
Optionors
”),
in
respect
of
the
Detour
West Property located in Ontario (the “
Detour West Property
”).
Option Agreement
Under
the
terms
of
the
Option
Agreement,
the
Company
has
an
option
to
acquire
a
100%
interest
in
the
Detour
West
Property
(the
“
Option
”)
by
cash
and
share
issuances (6,000,000 shares):
(a)
making
cash
payment
to
the
Optionors
in
the
aggregate
of
$40,000
within
five
days
of
the
date
of
acceptance
of
the
Option
Agreement
by
the
TSX
Venture
Exchange (“
TSXV
”) for filing (the “
Acceptance Date
”);
(b)
issue
2,000,000
common
shares
of
the
Company
(“
Common
Shares
”)
to
Optionors (as to 1,000,000 Common Shares each) following the Acceptance Date;
(c)
issue
2,000,000
Common
Shares
to
the
Optionors
(as
to
1,000,000
Common
Shares each) within one year from the Acceptance Date; and
(d)
issue
2,000,000
Common
Shares
to
the
Optionors
(as
to
1,000,000
Common
Shares each) within two years from the Acceptance Date.
The
cash
payments
and
Common
Share
issuances
outlined
above
will
be
divided
equally between the Optionors.
Upon
exercise
of
the
Option,
the
Optionors
shall
retain
a
2.5%
net
smelter
royalty
(the
“
Royalty
”)
on
all
minerals
produced
from
the
Detour
West
Property.
The
Royalty
will
be
divided
equally
between
Altus
and
Schuss,
meaning
that
each
of
Altus
and
Schuss
shall
retain
a
1.25%
Royalty
on
the
Detour
West
Property.
The
Royalty
can
be
reduced
by
an
aggregate
1%
to
1.5%
if
the
Company
pays
$500,000
to
the
Optionors
(or
$250,000
to
each
Optionor
for
a
0.5%
buy
back
from
each
Optionor)
at
any
time
before
the
Detour
West
Property
reaches
commercial
production.
The
Option
Agreement
and
the
share
issuance
thereunder
is
subject
to
approval
by
the TSXV.
Detour West Property
The
Detour
West
Property
is
18,929
hectares
in
size
(approximately
32
km
long
and
6
km
wide)
and
located
approximately
300
km
northeast
of
Timmins
and
185
km
northeast
of
Cochrane
by
road
in
the
northwestern
part
of
the
Abitibi
Greenstone
Belt within the southern part of the Superior Province in Ontario.
The Detour West Property is located approximately 20 km west of the open-pit
Detour Lake Gold Mine acquired by Kirkland Lake Gold Inc. in January 2020. Gold
mineralization at the Detour Lake Gold Mine is characteristic of greenstone-hosted
orogenic lode gold style deposits. The Detour Lake Gold Mine produced 601,566
ounces of gold in 2019 and has proven and probable mineral reserves of 447,450 Kt
at an average grade of 0.97 g/t Au for 14,847,000 contained gold ounces as of
December 31, 2019.
(
source:
Kirkland Lake Gold Inc. website
https://www.kl.gold/our-business/resources-and-reserves/default.aspx
)
Please refer to cautionary statements shown below.
The
Detour
Lake
area
is
comprised
of
thick
sequences
of
mafic
to
ultramafic
volcanic
rocks
referred
to
as
the
Deloro
Assemblage
(DA)
in
structural
contact
to
the
south
with
the
younger
sediments
of
Caopatina
Assemblage
(CA).
This
contact
between
the
DA
and
CA
is
characterized
by
a
regional
scale
thrust
zone
referred
to
as
the
Sunday
Lake
Deformation
Zone
(SLDZ).
The
structures
of
the
SLDZ
are
spatially
related
to
most
of
the
gold
mineralization
observed
in
the
Detour
Lake
area.
Exploration
work
on
the
Detour
West
Property
by
previous
operators
appears
to
indicate
that
the
property
may
be
underlain
by
previously
underexplored
and
unrecognized
extensions
of
the
rock
units
contained
within
the
Sunday
Lake,
Massicotte
and
Lower
Detour
deformation
zones
that
host
the
adjacent
Detour
Lake gold deposit.
In
2016,
Tri
Origin
Exploration
flew
a
helicopter-borne
geophysical
survey
over
the
eastern
part
of
the
Detour
West
Property.
Magnetic
results
from
this
geophysical
survey
confirmed
Tri
Origin’s
initial
interpretations
of
the
presence
of
the
western
extension
of
rock
units
and
fault
structures
hosting
the
nearby
Detour
Lake
Gold
Mine.
These
responses
flank
the
northern
and
southern
boundaries
of
a
west-northwest
trending
magnetic
low
interpreted
to
represent
the
westward
extension
of
the
Caopatina
Assemblage,
which
is
also
present
within
the
Detour
Lake and Lower Detour gold deposits.
The
Company
is
in
the
process
of
assembling
a
technical
team
with
extensive
experience
working
in
the
Detour
Lake
greenstone
belt
including
the
Detour
West
Property.
Cautionary Statements and Data Verification
This
news
release
contains
scientific
and
technical
information
with
respect
to
adjacent
or
similar
mineral
properties
in
the
Detour
Lake
region,
which
the
Company
has
no
interest
in
or
rights
to
explore.
Readers
are
cautioned
that
information
regarding
mineral
resources
and
reserves
and
gold
mineralization
on
adjacent
or
similar
properties
is
not
necessarily
indicative
of
the
presence
of
gold
mineralization on the Detour West Property.
A
Qualified
Person
has
verified
the
scientific
and
technical
data
disclosed
in
this
news
release
by
reviewing
historical
information
on
the
Detour
West
Property
from
the
public
records
(i.e.
geological
papers
and
mineral
assessment
reports).
Production
figures
and
mineral
reserves
for
the
Detour
Lake
Gold
Mine
disclosed
in
this
news
release
were
verified
by
reviewing
continuous
disclosure
documents
filed
on
SEDAR
by
Detour
Gold
Corp
(up
to
January
2020)
and
Kirkland
Lake
Gold
Inc.
(January 2020 to current) and other public disclosure documents.
Update to Private Placement
The
Company
is
also
pleased
to
announce
an
update
to
the
non-brokered
private
placement
of
Common
Shares
(the
“
Offering
”)
previously
announced
on
June
4,
2020.
The
Offering
will
now
be
a
non-brokered
private
placement
of
up
to
3,750,000
units
(each
a
“
Unit
”)
of
the
Company
at
a
price
of
$0.06
per
Unit
for
gross
proceeds
of
up
to
$225,000.
Each
Unit
will
consist
of
one
Common
Share
and
one-half
of
one
common
share
purchase
warrant
(each
whole
warrant,
a
“
Warrant
”).
Each
Warrant
will
be
exercisable
into
one
Common
Share
at
a
price
of
$0.15
per
Common
Share
for a period of three years from closing.
Net
proceeds
from
the
Offering
will
be
used
for
exploration
at
its
Hemlo
(Ontario)
and Urban Barry (Québec) gold projects and for general working capital purposes.
All
securities
will
be
subject
to
a
four-month
hold
period
from
the
closing
date
of
the
Offering.
Finder’s
fees
may
be
payable,
subject
to
the
policies
of
the
TSXV.
The
Offering is subject to the approval of the TSXV.
Qualified Person Statement
The
scientific
and
technical
information
contained
in
this
news
release
was
prepared
and
approved
by
Paul
Ténière,
M.Sc.,
P.Geo.,
Senior
Geologist
at
Mercator
Geological
Services
Ltd.
and
a
Qualified
Person
as
defined
by
National
Instrument
43-101 –
Standards of Disclosure for Mineral Projects (NI 43-101).
ON BEHALF OF THE BOARD
Michael E. Schuss
President & CEO
For further information, please contact:
Gambier Gold Corp.
Phone: (604) 279-6263
E-mail:
Website:
www.gambier.gold
This
news
release
includes
certain
forward-looking
statements
or
information.
All
statements
other
than
statements
of
historical
fact
included
in
this
release
are
forward-looking
statements
that
involve
various
risks
and
uncertainties.
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.
The
Company
expressly
disclaims
any
intention
or
obligation
to
update
or
revise
any
forward-looking
statements
whether
as
a
result
of
new
information,
future
events
or
otherwise
except
as
otherwise required by applicable securities legislation.
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.