Grid Metals Acquires District Scale Primary Cobalt Deposit IN Canada
For Immediate Release
Exchange: TSX Venture
September 13, 2018
Toronto, Ontario
Symbol:GRDM
Shares Outstanding: 42,116,610
GRID METALS ACQUIRES DISTRICT SCALE PRIMARY COBALT DEPOSIT IN
CANADA
• Acquisition of district scale, primary cobalt copper project in Canada
• Significant historical drill results along ~ 8 km of mineralized trend
• Historic drilling includes results of 25.2 metres of 0.13% cobalt and 0.57% copper from
Anomaly 4. (see following chart for Anomaly 4)
• Historic sampling returned 100 feet of 0.6% Cu and 0.15% Co from surface trench from
Anomaly 2. ( see following chart for Anomaly 2 )
GRID METALS CORP. (TSXV –GRDM; Frankfurt NJF; OTC: MSMGF ) today announced it
has acquired an option on a district scale primary cobalt project in Ontario, Canada (the “Cobalt
Road Project” or the “Project” ). The Project is a large-scale cobalt dominant project with
significant copper and nickel credits. The Project is accessible by all weather roads and close
to power and rail infrastructure. Cobalt mineralization is hosted in magnetite bearing mafic
intrusive rocks (the Atikokan river intrusions) along a regional fault structure with a strike length
of approximately ten (10) kilometers on the property optioned by the Company from Great
Lakes Exploration, a private U.S. company. There are significant drill hole results from widely
spaced shallow historical drilling on the property over the length of the trend. A summary
presentation of the Project can be found on the Company’s website at
www.gridmetalscorp.com. ( see September 2018 Corporate Presentation )
The Project was explored and tested for cobalt/copper mineralization during the early
and late 1970’s. The last drilling in the belt consisted of three hole drill program in
1995/6. A report by the Ontario Geological Survey (“OGS”) published in 2016 noted the
cobalt and copper potential of the Atikokan Intrusions and characterized such as …
sulphide-rich, massive to semi massive zones , lenses and pods of magnetite,
usually surround ed by diffuse, disseminated, occasionally net -textured,
sulphide/magnetite halos. The associated sulphides are often Cu- and Co-rich and
primarily comprise pyrite, pyrrhotite, and chalcopyrite.
Historical drill intercepts include wide zones of potential bulk tonnage grade. Several drill holes
with significantly higher cobalt grades indicate the potential for underground mineralization.
Given the widespread cobalt mineralization the Company believes a concerted effort is
warranted to drill test the mineralized intrusions along their strike length and to depth.
A selected summary of historical drill hole intercepts reported from the project on three of the
main geophysical anomalies on the Property are contained in the tables below.
The reader is cautioned that the information in the charts below is consider ed historical in nature and
as such is based on prior data and reports prepared by previous property owners. The Qualified Person
has reviewed but not independently verif ied the historical property assessment information. The
Qualified Person has reviewed analytical results of composite selected rock chip samples from trenches
at Anomaly 2 which results approximate the grade of sample data from historical results. Verification of
historical results is limited by the inability to replicate historical drilling data without conducting a drill
program. Results reported herein do not include all historical drilling or other activity at the project.
Anomaly 1
West
Location West end of Property ~ 1 km airborne EM
anomaly. Four historical drill holes drilled on two north
south sections in 1971
Description
Section 1
From
(m)
To
(m)
Width*
(m)
Cobalt
(%)
Copper
(%)
DDH 71-2 Failed to reach bedrock
DDH 71-2A
84.3 98.1 14.5 0.07 0.24
Section 2
DDH 71-3
39.5
46.5
7.0
0.08
0.27
Collared 580 m
west of 71-2A
and 62.0 69.2 7.2 No data 0.42
and 120.1 132.0 11.9 0.09 0.25
and 132.0 138.1 6.1 No data 0.35
DDH 71-4
80.5
93.1
12.6
0.08
0.48
Drilled on a NS
fence 75m south
of DDH 71-3
Source: Assessment Reports Hanna Mining Company DDH above represent total of known drill holes on the
anomaly. * True width not known. Results reported herein do not include all historical drilling or other activity at
the project. m = metres
Anomaly 2
Central
Location 1.5 km east of Anomaly 1
Description: ~ 0.8 km ground EM and coincident airborne
anomaly
Channel samplestaken over 250m strike length
Width Cobalt (%) Copper (%)
Channel 1 Trench 14 80 ft 0.09 0.31
Channel 2 Trench 4 65 ft 0.12 0.44
Channel 3 Trench 5 100 ft 0.15 0.61
Source: historical assessment. Drilling in 1972 under the trenches was not assayed for cobalt. Results may not represent
true width of mineralization. Sampling methodology is not able to be confirmed.
There is no known drilling on Anomaly 3 which is approximately 300 metres in length.
Anomaly 4
East
Location: East Part of Property 5 km east of Anomaly 2
Description - a ~ 4 km long airborne EM anomaly; DDH M-1 to M3
drilled under a lake.
From
(m)
To
(m)
Width*
(m)
Cobalt
(%)
Copper
(%)
DDH M-1 83.4 111.3 27.9 0.10 0.40
Including 94.8 98.1 3.3 0.30 0.60
DDH M-2 85.8 111.0 25.2 0.13 0.57 300m west of M-1
Including 102.8 104.8 2.0 0.48 0.85
DDH M-3 88.8 93.0 4.2 0.07 0.42 500m west of M-2
DDH M-7 94.4 105.9 11.6 0.15 0.47 700m west of M-3
Including 99.8 102.7 2.9 0.23 0.58
Source: Above drill holes are from historical assessment reports and information obtained from the Company. The results have not been
independently verified. * True width not known.
Following completion of a due diligence period, the Company will commence exploration on the
Project including detailed sampling, geophysics, drilling and metallurgical test work. Great
Lakes Exploration Inc. will be the project operator. (see transaction summary below)
Robin Dunbar, President and CEO of Grid Metals, stated “The Cobalt Road Project has a well-
established geological model and substantial scale with widespread cobalt copper and nickel
mineralization but remains vastly unexplored. Unlike most sulfide cobalt dominant projects in
North America there are large, clearly defined near surface, mineralized target structures with
impressive strike lengths and mineralized widths. Grid shareholders will now have exposure
to our prefeasibility stage nickel copper project in Manitoba and a highly prospective exploration
stage cobalt property in Ontario”
Transaction Summary The Property is being acquired by Grid subject to an exploration and
option agreement (the Property Agreement) with Great Lakes Exploration Inc.,(“GLE”) a private
U.S. company. The Property Agreement covers all property acquired by GLE or Grid in an area
of influence covering the prospective mineralized intrusions in the belt. Mineral rights currently
controlled within the area of influence include 1116 acres of patented mining claims, 890 acres
of unpatented mining claims controlled by GLE, and will also include the property optioned by
Grid announced on August 2, 2018. The patented mining claims were optioned by Great Lakes
Exploration Inc. (“GLE”) from several underlying owners.
In order to earn an initial 60% undivided interest in the property Grid is required to make the
cumulative cash payments of US $8 65,000,($75,000 paid) , incur US$6,500,000 of project
expenditures and issue a total of 5 million common shares over a period of five years. Project
expenditures include the underlying cash payments, work expenditure requirements and
property buy outs due to the underlying optionors as well as acquisition and exploration costs
of future mineral rights acquired. Grid can earn a further 20% interest in the Property by issuing
an additional 3 million shares and by making a cash payment of $5 million to GLE. Grid can
acquire the remaining 20% property interest prior to commencement of commercial production
by making a cash payment of $25,000,000 to GLE. There is a 30% outstanding minority interest
on 98 acres of patented mining claims and underlying Net Smelter Return Royalties associated
with the underlying property options. As part of the transaction with GLE , following a 90 day
due diligence period GLE will have t he right to appoint one director to the Grid board of
directors. It is the intention of Grid that its board shall be reconstituted to consist of two
appointees of GLE, two existing Board members of Grid and one newly independent appointee
newly nominated by the four directors. Thomas O. Quigley P.Geo is the principal of GLE. GLE
as project operator will propose and implement work plans (to be funded by Grid ) to enable
Grid to earn the interests contemplated by the Property Agreement.
A finders fee of 100,000 common shares and 300,000 share purchase warrants exercisable at
CDN$0.175 are payable with respect to the transaction.
Carey Galeschuk P.Geo is the Qualified Person for Grid Metals Corp. and has approved this
written disclosure.
About Grid Metals Corp.
Grid owns the mineral rights to the Makwa Nickel Property and the Mayville Property both located in the Bird
River Greenstone Belt in southeast Manitoba. The Company completed a PEA on the Makwa-Mayville Project in
2014. In 2018 the Company acquired the Mayville Lithium Property from Tantalum Mining Corporation of
Canada Ltd and a drill program is underway targeting a lithium an d rare metal bearing pegmatite, one of four
known on the property. The Company also controls mineral rights at the East Bull Lake Property west of Sudbury
prospective for PGM and the Bannockburn Nickel Property near Matachewan, Ontario .
To find out more about Grid Metals Corp. (TSX-V: GRDM)
visit our website at www.gridmetalscorp.com or:
Telephone: 416-955-4773 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, uncerta inty 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, completion 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 Management 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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