GoldMining to Acquire the Crucero Gold Project in Peru from Lupaka Gold
GoldMining to Acquire the Crucero Gold Project in Peru from
Lupaka Gold
Highlights:
Acquisition of a 100% interest in the Crucero Gold Project in
Southeastern Peru
;
Lupaka previously reported a pit constrained
indicated resource of 1.00 million ounces grading 1.01 g/t gold
and an
inferred
resource of 1.03 million ounces grading 1.03 g/t gold
at a 0.4 g/t gold cut-off at the Project (see Table 1 below). GoldMining will treat
this as a historic estimate and plans to engage a qualified person to complete the necessary work to verify the estimate and complete an
independent technical report;
Approximately 23,000 m of diamond drilling over 72 holes have been completed;
10 additional geophysical and geochemical targets identified on the Project to date;
Total consideration at closing will be 3,500,000 common shares and
$750,000
in cash representing approximately 3% dilution to
GoldMining shareholders; and
Represents GoldMiningꞌs first acquisition in
Peru
, which is among the worldꞌs largest producers of gold, copper and silver, and ranks as one
of the most attractive jurisdictions for mining investment in
Latin America
(Fraser Institute, 2016).
VANCOUVER
,
Sept. 19, 2017
/CNW/ - GoldMining Inc. (the "Company" or "GoldMining") (TSX-V: GOLD; OTCQX: GLDLF) is pleased to
announce that it has entered into an agreement (the "Agreement") with Lupaka Gold Corp. ("Lupaka"), to acquire a 100% interest in the Crucero
Gold Project (the "Project") located in
Southeastern Peru
.
Amir Adnani
, Chairman of GoldMining, commented: "We are pleased to announce another milestone acquisition in furtherance of our long-term
growth and value-building strategy. With this acquisition, we continue to realize our vision of consolidating multi-million ounce gold assets and
maximizing gold leverage for our shareholders. The transaction also represents our first acquisition in the country of
Peru
, which is among the most
prolific mining nations in the world."
Garnet Dawson
, CEO of GoldMining, commented: "With this acquisition, we will be acquiring not only a project in a favourable mining jurisdiction
with a historic pit-constrained resource, but also one that has had significant historical investment and exploration, including 23,000 m of drilling
over 72 holes, and numerous targets identified for future exploration. Upon completion, we plan to commission a current resource estimate for the
Project as well as identify opportunities for follow-up exploration and expansion."
The Agreement
Pursuant to the Agreement, GoldMining will acquire all of the shares of a wholly-owned subsidiary of Lupaka, which will hold a 100% interest in
the Project. Total consideration payable by GoldMining to Lupaka under the transaction is 3,500,000 common shares of GoldMining (the
"
GoldMining Shares
") and
$750,000
in cash.
The GoldMining Shares to be issued under the transaction are subject to certain resale restrictions pursuant to the terms of the Agreement.
The transaction is subject to customary closing conditions, including receipt of requisite third party and regulatory consents and approvals. The
parties currently expect closing to occur by the end of
September 2017
.
The Project
The Project is located 150 km northeast of the city of Juliaca in the Department of Puno, in southeastern
Peru
. The Project is road accessible by
paved road from Juliaca to the town of Crucero, with the remaining 50 km to site by gravel road. High-power electrical lines pass within 8 km of
the property.
The Project is comprised of three mining and five exploration concessions with an aggregate area of 4,600 hectares. The exploration concessions
are renewable on an indefinite basis through payment of annual fees to the Peruvian government. The three mining concessions are held indirectly
by Lupaka through a 30 year assignment from a third party running until 2038 and are subject to certain royalty obligations.
Historic exploration programs have focused on the A1 deposit, however geophysical and geochemical surveys have identified 10 additional targets
(A2 to A11) for follow-up exploration. The A1 deposit, as currently defined by trenching and drilling, strikes northwest and dips vertically to
steeply to the northeast. The deposit is approximately 750 m long by 100 m in width and has been traced to a vertical depth of 400 m, but most of
the drilling is confined to within 250 m of surface. The deposit is open at depth and along strike to the northwest and southeast. The orogenic gold
mineralization is associated with sulphide veins hosted within strongly deformed metasedimentary rocks.
The A1 deposit was the subject of a resource estimate published by Lupaka in 2013 (Table 1), which will be treated as a historic estimate by
GoldMining. The conceptual pit delineated resource was based on 72 diamond drill holes (approximately 23,000 m) and is reported within a
conceptual pit shell. High-grade gold values were capped at 17 g/t gold with 5 assays falling above this value. Average bulk density of 2.85 g/cm
3
was used to convert block model volumes to tonnages.
Table 1: A1 deposit historical pit constrained resource estimate published by Lupaka in 2013.
Cut-off
Tonnes & Grade
Contained Metal
Resource
Category
Au
(g/t)
Tonnes
(Mt)
Au
(g/t)
Au
(Moz)
Indicated
0.40
30.9
1.01
1.00
Inferred
0.40
31.2
1.03
1.03
The following parameters were utilized by Lupaka to establish the conceptual pit:
Parameter
Value
Unit
Gold Price
1,400
US$/oz
Mine Operating Cost (Mineralization and Waste)
1.50
US$/t milled
Process Operating Cost
13.00
US$/t milled
General & Administrative
2.00
US$/milled
Overall Pit Slope
47
Degrees
Gold Process Recovery
90
%
Mining Dilution
5
%
Mining Recovery
100
%
The above resource estimate is historical in nature and will not be treated as a current resource estimate by the Company as a qualified person has
not done sufficient work on behalf of the Company to classify the historical estimate as a current mineral resource. However, the Company
believes the historical estimate is relevant to any future exploration and as an indication of the potential of the property. The historical resource
estimate for the Project is based on a technical report completed for Lupaka by
Gregory Z. Mosher
, M.Sc., P.Geo. of Tetra Tech WEI Inc. and
Anoush Ebrahimi
, P.Eng. of SRK Consulting (
Canada
) Inc. titled "Technical Report for the Crucero Property, Carabaya Province,
Peru
" with an
effective date of
January 17, 2013
(amended and re-stated
October 22
, 2013). No new drilling or sampling has been completed on the A1
deposit since the above resource estimate was completed. However, GoldMining intends to engage an independent qualified person to, among
other things, examine the cut-off grade with reference to today's metal prices, verify historic sampling and results and complete a technical report,
including a current resource estimate on behalf of the Company.
Advisors
Haywood Securities Inc. has advised GoldMining in connection with the transaction, and Sangra Moller LLP is acting as legal counsel to
GoldMining.
Qualified Person
Paulo Pereira
, President of GoldMining Inc. has reviewed and approved the technical information contained in this news release. Mr. Pereira holds
a Bachelors degree in Geology from Universidade do Amazonas in
Brazil
, is a Qualified Person as defined in National Instrument 43-101 and is a
member of the Association of Professional Geoscientists of
Ontario
.
About GoldMining Inc.
GoldMining Inc. is a public mineral exploration company focused on the acquisition and development of gold projects in the Americas. GoldMining
is advancing its Titiribi and La Mina Gold-Copper Projects located in the Department of Antioquia,
Colombia
, its São Jorge and Cachoeira Gold
Projects located in the State of Pará, northeastern
Brazil
, its Whistler Gold-Copper Project located in the
State of Alaska
,
United States of
America
, and its Rea Uranium Project in the western
Athabasca
Basin in northeast
Alberta, Canada
.
Forward-looking Statements
This document contains certain forward-looking statements that reflect the current views and/or expectations of GoldMining with
respect to its business and future events, including expectations respecting the Project, the completion of the proposed acquisition of the
Project and any future exploration programs and other work on the Project. Forward-looking statements are based on the then-current
expectations, beliefs, assumptions, estimates and forecasts about the business and the markets in which GoldMining operates, including
that the parties will satisfy or waive all conditions required to complete the transactions under the Agreement, including receipt of all
third-party consents and approvals, and that GoldMining will confirm historical exploration results. Investors are cautioned that all
forward-looking statements involve risks and uncertainties, including: the inherent risks involved in the exploration and development of
mineral properties, the uncertainties involved in interpreting drill results and other exploration data, the potential for delays in
exploration or development activities, the geology, grade and continuity of mineral deposits, the possibility that future exploration,
development or mining results will not be consistent with GoldMiningꞌs expectations, accidents, equipment breakdowns, title and
permitting matters, labour disputes or other unanticipated difficulties with or interruptions in operations, fluctuating metal prices,
unanticipated costs and expenses, uncertainties relating to the availability and costs of financing needed in the future, including to fund
any exploration programs on the Project, that the parties may not receive all consents and approvals or satisfy all conditions required
under the Agreement and that GoldMining may not be able to confirm historical exploration results or complete a current resource
estimate for the Project. These risks, as well as others, including those set forth in GoldMiningꞌs filings with Canadian securities
regulators, could cause actual results and events to vary significantly. Accordingly, readers should not place undue reliance on forward-
looking statements and information. There can be no assurance that forward-looking information, or the material factors or
assumptions used to develop such forward looking information, will prove to be accurate. GoldMining does not undertake any
obligations to release publicly any revisions for updating any voluntary forward-looking statements, except as required by applicable
securities law.
Neither the TSX Venture Exchange, the Toronto Stock Exchange nor their Regulation Services Providers (as that term is defined in the
policies of the TSX Venture Exchange and the Toronto Stock Exchange) accepts responsibility for the adequacy or accuracy of this news
release.
SOURCE
GoldMining Inc.
View original content: http://www.newswire.ca/en/releases/archive/September2017/19/c5366.html
%SEDAR: 00031036E
For further information:
GoldMining Inc.: Amir Adnani, Chairman; Garnet Dawson, CEO; Telephone: (855) 630-1001, Email:
CO: GoldMining Inc.
CNW 16:39e 19-SEP-17