Grid Metals Completes Geophysical Survey at East Bull Lake Acquires Additional Property and Prepares for Drill Program
Grid Metals Completes Geophysical Survey at East Bull Lake
Acquires Additional Property and Prepares for Drill Program
Toronto, Ontario , May 6 th, 2020 – Grid Metals Corp. (the " Company") (TSXV:GRDM) is pleased to
provide an update on the exploration program at its 100% owned East Bull Lake (“EBL”) palladium
property (“the Property”) in Ontario.
Highlights
• Completion of the spring 2020 magnetotelluric (“MT”) survey with several new targets identified
• Emerging pattern of coincident MT anomalies, major structures and known palladium
mineralization
• Tenders for a planned summer 2020 drill program are in progress
• Acquisition of additional property in the EBL area
New MT Survey Results
The data collection p hase of the 2020 Spartan MT survey has been completed. Results from the
previously completed Parisien Lake grid were announced by the Company on April 28. New data has
been received from two transect lines across the West Lobe and a grid over a portion o f the East Lobe
(Figure 1) and illustrated on a longitudinal section A-A’ (Figure 2). Key results are discussed below.
West Lobe – Northern Margin
A laterally persistent, southwest dipping, low resistivity layer has been identified along the north margin
of the West Lobe of the intrusion ( northern part of profile P 16, Figure 2). It may relate to outcropping
palladium mineralization along this largely untested area. The only drill hole near the anomaly is hole
EB12-05 which intersected 2.50 metres averaging 3.4 g/t Pd including 0.60 metres at 11.23 g/t Pd, 2.07
g/t Pt and 0.40% Cu. The true thickness of this mineralized interval is not known as there is insufficient
geological information for this part of the EBL intrusion to support an estimate. The palladium
mineralization in hole EB12 -05 occurs at approximately the same depth as the northernmost MT
anomaly shown in profile P 19. The southern part of profile line P19 appears to have detected a
previously reported southwest -dipping resistivity low identified on profile line P09 . This anomaly
appears to follow the strike of the Parisien Lake structure over a distance of approximately 2 kilometres.
East Lobe
To date, three discrete resistivity anomalies are recognized from the new East Lobe MT survey results
(see profile P 16, Figure 2) . Two of these are adjacent to discrete, east-trending zones of palladium
mineralization and the third is developed near the south margin of the intrusion (Figure 2) . All three
anomalies are spatially associated with a major northwest trending structure (herein named the Sables
River structure).
General
A clear pattern is emerging wherein samples with anomalous palladium grades in the EBL intrusion are
associated with major structures and, locally, resistivity lows . T hese major structures could have acted
as the primary magma feeder conduits for the EBL intrusion and, if so, may represent areas of enhanced
potential for the accumulation of palladium -rich sulfides . Three northwest -striking major structures
appear to divide the intrusion into separate structural blocks (Figure 1) , all of which host laterally
extensive, near surface palladium mineralization. Based on existing data, the best mineralized structural
trend is associated with a 12 km long segment of the Sables River structure.
Tender of Drill Contract
The Company plans to commence drill following the final interpretation of the MT survey data and
subject to health and safety concerns relating to the C OVID-19 situation. The Company is targeting
commencement of drilling at the start of June 2020. A drill contract tender process has commenced.
Acquisition of Additional Property at EBL
Grid has acquired a property pack age (“Shib” property) at the east end of the EBL i ntrusion in an option
agreement with the owners of the property. The Shib property is located 1.8 kilometres to the east of
the East L obe MT survey grid (Figure 1). It consists of 8 boundary cell mining claim units covering an
area of approximately 50 hectares. Due diligence surface sampling completed by the Company in 2012
returned five samples with anomalous palladium grades ranging from 0.7 g/t Pd to 2.20 g/t Pd. The best
result was 2.20 g/t Pd, 0.52 g/t Pt, 0.16 g/t Au, 1.04% Cu and 0.13% Ni in one sample. The samples
extend over a n east-west distance of approximately 200 metres. The known palladium mineralization
on the Shib property is consistent with the style of disseminated sulfide mineralization that is
intermittently present along the southern margin of the East Lobe.
Under the terms of the property option agreement the Company has made an initial cash payment of
$15,000 and will issue 100,000 common shares of the Company subject to approval of the TSX Venture
Exchange. In order for the Company to earn a 100% interest in the Shib property it would need to make,
at its option, additional cash payments an d share issu ance on each of the subsequent 3 anniversary
dates as follows:
• Year 1 - $20,000 and 50,000 shares
• Year 2 - $30,000 and 50,000 shares
• Year 3 - $40,000
Grid also recently staked several unpatented mining claims to cover prospective structural tr ends and
MT anomalies located south of the mapped southern margin of the East L obe of the intrusion. The
Company’s land position at EBL will be updated after formal approval of the new claims has been
granted.
Dr. Dave Peck, P.Geo., the Company’s VP Exploration and Business Development commented “we are
pleased with the results of the MT survey, which appear to validate our recent decision to focus on well
documented major faults that may have acted as feeders to the EBL intrusion and its extensive
palladium mineralization. We look forward to testing the top-ranked MT anomalies in our upcoming
drill program.”
The Company expects to provide additional interpretations from the MT survey and specific drill targets
for the upcoming drill program later this month.
Dr. Dave Peck, P.Geo., has reviewed and approved the technical content of this release for purposes of
National Instrument 43-101.
About Grid Metals Corp.
Grid Metals Corp. is an exploration and development Company that has a diversified portfolio of projects in the
nickel-copper-platinum group metal sectors. These commodities are vital to the emerging battery metals, energy
storage and automotive sectors. A ll of Grid's projects are located in secure North American mining jurisdictions.
The Company is focused on timely advancement of its property portfolio through prudent exploration and
development activities.
To find out more about Grid Metals Corp., please visit www.gridmetalscorp.com.
On Behalf of the Board of Grid Metals Corp.
Robin Dunbar - President, CEO & Director Telephone: 416-955-4773
Email: [email protected]
David Black - Investor Relations Email: [email protected]
We seek safe harbour.
This news release contains forward -looking statements within the meaning of the United States Private
Securities Litigation Reform Act of 1995 and forward -looking information within the meaning of the
Securities Act (Ontario) (together, "forward -looking statements"). Such forward-looking statements may
include the Company's plans for its properties, the overall economic potential of its properties, the
availability of adequate financing and involve known and unknown risks, uncertainties and other factors
which may cause the actual results, performance or achievements expressed or implied by such forward -
looking statements to be materially different. Such factors include, among others, risks and uncertainties
relating to potential political risk, uncertainty of production and capital costs estimates and the potential
for unexpected costs and expenses, physical risks inherent in mining operations, metallurgical risk,
currency fluctuations, fluctuations in the price of nickel, cobalt, copper and other metals, co mpletion of
economic evaluations, changes in project parameters as plans continue to be refined, the inability or
failure to obtain adequate financing on a timely basis, and other risks and uncertainties, including those
described in the Company's Manageme nt Discussion and Analysis for the most recent financial period
and Material Change Reports filed with the Canadian Securities Administrators and available at
www.sedar.com.
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as amended, and such securities may not be offered or sold within the United States absent U.S.
registration or an applicable exemption from U.S. registration requirements.
Figure 1. Location of the 2020 MT survey areas showing updated structural interpretations and location of core
and surface samples having anomalous combined Pd + Pt + Au grades of >0.5 g/t. Section line A-A’ and associated
MT profile lines P19 and P16 are described in Figure 2. Also shown is th e location of the Shib property that has
been optioned by the Company.
Figure 2. Top: Plan map showing longitudinal section A-A’ (see figure 1 for location) with location of MT profile
lines P19 (West Lobe – northern margin), P09 (Parisien Lake area – previously reported) and P16 (East Lobe)
relative to interpreted major structures and adjacent drill holes and with a total field magnetics background image.
Bottom: Preliminary 2D sections of modelled resistivity along MT profile lines P19 and P16 – looking northeast.
Dashed line on profile P19 is an interpreted southwest-dipping zone of reduced resistivity that includes the
shallower anomalies along the northern margin (upper left) and a deeper anomaly (bottom right) previously
identified along the Parisien Lake structure. Note two times vertical exaggeration was used in the two sections.