Equity Metals Announces Flow Through Non- Brokered Private Placement
Equity Metals Announces Flow Through Non-
Brokered Private Placement
Vancouver, British Columbia--(Newsfile Corp. - November 6, 2020) -
Equity Metals Corporation
(TSXV: EQTY) (the "Company" or "Equity Metals") reported today that it plans to issue up to a total of
12,500,000 flow through Units at a price of $0.18 per Unit for gross proceeds of $2,250,000. Each Unit
will consist of one flow through common share and 1/2 non-flow through share purchase warrant with
each full warrant exercisable for one common share at a price of $0.25 per common share for a period
of three years after the closing of the Offering.
The Company will make a provision for an over-allotment
option (Greenshoe) to allow a purchase of up to 10% additional units beyond the number of units in this
offering. Finders' fees and commissions may be paid by the Company in relation to the units sold in this
offering. The private placement is subject to TSX Venture Exchange approval.
Net proceeds will be used for costs associated with the continued exploration/drill program for the Silver
Queen project in British Columbia.
The Company plans upwards of 5,500 metres of drilling over the next 6 to 12 months which will target
step-outs from the highlighted intercepts toward defining further extensions of mineral resources
identified on the No. 3 Vein and recently identified mineralization in the Camp Vein systems.
The Silver Queen project currently contains an NI43-101 Mineral Resources Estimate
(
1)
, using a
CDN$100 NSR cut-off, of:
Indicated - 244,000ozs AuEq:
85,000ozs Au, 5.2Mozs Ag, 5Mlbs Cu, 17Mlbs Pb and 114Mlbs
Zn; and
Inferred - 193,000ozs AuEq:
64,000ozs Au, 4.7Mozs Ag, 5Mlbs Cu, 16Mlbs Pb and 819Mlbs Zn
Initial assays from the recently completed drill program on the
Silver Queen project
, British Columbia,
intersected
Bonanza-grade Silver Mineralization
from the Camp Vein target including:
a 0.3 metre
downhole interval grading
56,115g/t Ag, 0.2g/t Au, 1.1% Cu, 0.6% Pb
and
1.2% Zn
(56,291g/t AgEq or 750.5g/t AuEq)
within a broader
1.65 metre
downhole interval averaging
12,448g/t Ag, 0.3g/t Au, 0.3% Cu, 0.5% Pb and 0.8% Zn (12,538g/t AgEq or 167.2g/t AuEq)
from 112.4m to 114.1m down hole in SQ20-010.
The Company has received a five-year, area-based exploration permit for its 100% owned
Silver
Queen Au-Ag Project
, located near Houston in the well-mineralized Skeena Arch region of British
Columbia. Drilling on the property will focus on the systematic resource expansion on an
historic high-
grade precious-metal-enriched epithermal vein system
as well as the identification of new mineral
discoveries to further increase existing mineral resources noted below.
Three separate vein structures
are targeted for exploration drilling with the near- to mid-term objective of doubling the existing mineral
resource on the property.
Silver Queen Project Background
The Silver Queen Project is a premier gold-silver property with over 100 years of historic exploration and
development located adjacent to power, roads and rail with significant mining infrastructure that was
developed under previous operators: Bradina JV (Bralorne Mines); and Houston Metals Corp. (a Hunt
Brothers company). The property contains an historic decline into the No. 3 Vein, camp infrastructure
and a maintained Tailings Facility.
The Silver Queen Property consists of 45 mineral claims, 17 crown grants, and two surface crown grants
totalling 18,852ha with no underlying royalties. Mineralization is hosted by a series of epithermal veins
distributed over a 6 sq km area. Most of the existing resource is hosted by the No. 3 Vein, which is
traced by drilling for approximately 1.2km to the southeast where it transitions into the NG-3 Vein close
to the Itsit porphyry area. Over 20 different vein structures have been identified on the property, forming
an extensive network of zoned Cretaceous- to Tertiary-age epithermal veins. The property remains
largely under-explored.
About Equity Metals Corporation
Equity Metals Corporation is a Manex Resource Group Company which provides exploration,
administration, and corporate development services for Equity Metals' two major mineral properties, the
Silver Queen Au-Ag-Zn-Cu project,
located in central B.C., and the
Monument Diamond project
,
located in Lac De Gras, NWT.
The Company owns 100% interest, with no underlying royalty, in the
Silver Queen project,
located
along the Skeena Arch in the Omineca Mining Division, British Columbia. The property hosts high-grade,
precious- and base-metal veins related to a buried porphyry system, which has been only partially
delineated. The Company also has a controlling JV interest in the
Monument Diamond project
,
NWT
,
strategically located in the Lac De Gras district within 40 km of both the Ekati and Diavik diamond mines
The project owners are Equity Metals Corporation (57.49%), Chris and Jeanne Jennings (22.11%); and
Archon Minerals Ltd. (20.4%). Equity Metals is the operator of the project.
The Company also has royalty and working interests in other Canadian properties, which are being
evaluated further to determine their value to the Company.
1
.
The 2019 Silver Queen Resource Estimate was prepared following CIM definitions for classification of Mineral Resources and identified at a
CDN$100/NSR cut-off, an indicated resource of 815Kt averaging 3.2g/t Au, 201g/t Ag, 1.0% Pb, 6.4% Zn and 0.26% Cu and an inferred resource
of 801Kt averaging 2.5g/t Au, 184g/t Ag, 0.9% Pb, 5.2% Zn and 0.31% Cu. Grade capping on Ag and Zn was performed on 0.75m to 1.24m
length composites. Au, Cu and Pb required no capping. ID
3
was utilized for grade interpolation for Au and Ag while ID
2
was utilized for Cu, Pb
and Zn. Grade blocks were interpreted within constraining mineralized domains using and array of 3m x 1m x 3m blocks in the model. A bulk
density of 3.56 t/m³ was used for all tonnage calculations. Approximate US$ two-year trailing average metal prices as follows were used: Au
$1,300/oz, Ag $17/oz, Cu $3/lb, Pb $1.05/lb and Zn $1.35/lb with an exchange rate of US$0.77=C$1.00.
The C$100/tonne NSR cut-off grade value for the underground Mineral Resource was derived from
mining costs of C$70/t, with process costs of C$20/t and G&A of C$10/t. Process recoveries used were
Au 79%, Ag 80%, Cu 81%, Pb 75% and Zn 94%. AuEq and AgEq are based on the formula: NSR
(CDN) = (Cu% * $57.58) + (Pb% * $19.16) + (Zn% * $30.88) +(Au g/t * $39.40) + (Ag g/t * $0.44) -
$78.76.
Mineral Resources are not Mineral Reserves, do not have demonstrated economic viability and may be
materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other
relevant issues. Inferred Mineral Resources have a lower level of confidence than Indicated Mineral
Resources and may not be converted to a Mineral Reserve but may be upgraded to an Indicated Mineral
Resource with continued exploration. The Mineral Resources were estimated using the Canadian
Institute of Mining, Metallurgy and Petroleum (CIM), CIM Standards on Mineral Resources and Reserves,
Definitions and Guidelines.
The Mineral Resource Estimate was prepared by Eugene Puritch, P.Eng., FEC, CET and Yungang Wu,
P.Geo., of P&E Mining Consultants Inc. ("P&E") of Brampton, Ontario, Independent Qualified Persons
("QP"), as defined by National Instrument 43-101. P&E Mining suggests that an underground mining
scenario is appropriate for the project at this stage and has recommended a CDN$100/tonne NSR cut-
off value for the base-case resource estimate.
Robert Macdonald, MSc. P.Geo, is VP Exploration of Equity Metals Corporation and a Qualified Person
as defined by National Instrument 43-101. He is responsible for the supervision of the exploration on the
Silver Queen project and for the preparation of the technical information in this disclosure.
On behalf of the Board of Directors
"Joseph Anthony Kizis, Jr."
Joseph Anthony Kizis, Jr. P.Geo
President, Director, Equity Metals Corporation
For further information, visit the website at
www.equitymetalscorporation.com
; or contact us at
604.641.2759 or by email at
.
Neither 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. This news release may contain forward-looking statements. Forward-looking statements
address future events and conditions and therefore involve inherent risks and uncertainties. Actual
results may differ materially from those currently anticipated in such statements. Factors that could
cause actual results to differ materially from those in forward looking statements include the timing
and receipt of government and regulatory approvals, and continued availability of capital and
financing and general economic, market or business conditions.
Equity Metals Corporation does not
assume any obligation to update or revise its forward-looking statements, whether as a result of new
information, future events or otherwise, except to the extent required by applicable law.
This news release is not intended for distribution to United States newswire services or
dissemination in the United States.
To view the source version of this press release, please visit
https://www.newsfilecorp.com/release/67645