GSP Resource Corp. Signs Definitive Agreement to Acquire the Alwin Copper-GOLD-Silver Project
GSP RESOURCE CORP. SIGNS DEFINITIVE AGREEMENT TO ACQUIRE THE
ALWIN COPPER-GOLD-SILVER PROJECT
Vancouver, British Columbia – January 30, 2020: GSP Resource Corp. (TSX -V: GSPR ) (the
“Company” or “GSP”) is pleased to announce it has signed an option agreement to acquire 100% of the
Alwin copper -gold-silver project located in the Kamloops Mining Division, British Columbia (the
“Alwin Project”) from Richard John Billingsley and S. Gaye Richards (the “Vendors”).
Alwin Project Overview & History1
The Alwin property is approximately 575.72 hectares and is located on the semi-arid, interior plateau in
south-central British Columbia. It is adjacent with the western boundary of Teck Corporation’s Highland
Valley Mine, the largest open-pit porphyry copper- molybdenum mine in western Canada. Alteration and
mineralization of the Highland Valley hydrothermal system extends westward from the Highland Valley
mine onto the Alwin property.
A summary report prepared by John R. Kerr, P. Eng, dated November 15, 2006 on the Alwin Property,
Kamloops Mining Division, British Columbia, is available on www.sedar.com under the profile of San
Marco Resources (the “Report”). The historical resource estima tes disclosed in the Report were not
created using Standards of Disclosure for Mineral Projects as outlined in National Instrument 43-101. As
noted below, the Company is not considering the estimate as current and further drilling is needed in
order to upgrade the historical resource estimate.
Copper mineralization has been known in the area now covered by the Alwin property since late in the
19th century. Small-scale mining was conducted in the property area during the early 20th century. Recent
exploration and mining was conducted during two periods: from 1967 to 1982 and from 2005 to 2008.
From 1967 to 1970, induced polarization and geochemical surveys were conducted. 6,940 m of surface
diamond drilling in 81 holes was drilled along the main Alwin mineralized trend, and 5,860 m of
underground drilling in 119 holes was completed in 1,400 m of development workings in the Alwin mine.
The Report also disclosed that i n 1971 upon receipt of a study produced by Bacon and Crowhurst Ltd.
and Sandwell and Company Ltd., the OK Syndicate built a 500-ton (454.5-tonne) per day mill at OK
Lake in the southwestern part of the property area and mined along the main mineralized trend in the
property’s southeastern part using limited block caving. Mining was terminated in 1972 due to losses
caused by excessive dilution. A total of 76,000 tonnes of mineralization grading 1.52% copper was mined.
Selco Mining Corp. optioned the property in 1973 and drilled 900 m in 11 underground holes. From 1974
to 1979, the OK Syndicate drilled 10,330 m in 205 underground holes in and around the mine workings.
The Report further disclosed that in 1980, Dekalb Mining Corp. expanded the capacity of the mill to 700
tons (636.4 tonnes) per day and resumed mining of the main Alwin m ineralized trend. Total production
was 155,000 tonnes grading 1.54% copper. Mining was suspended in September, 1981 due to low copper
prices. At the conclusion of mining, a trackless development decline had been extended to a depth of 270
1 Summary Report prepared by John R. Kerr, P. Eng, dated November 15, 2006 on the Alwin Property, Kamloops
Mining Division, British Columbia, for Max Investments Inc. on behalf of San Marco Resources Inc. is available on
www.sedar.com under the profile of San Marco Resources.
m below surface ( to an elevation of 1,400 m a.s.l.) and 3,935 m of drilling had been completed in 76
underground holes. A total of 905 m of drilling was done in 11 holes on surface to test shallow induced
polarization anomalies around the mine. Dekalb calculated a resource around the mine workings after
mining terminated. A summary of this historical resource estimate calculation was reported to be a total
of 390,000 tonnes of mineralization grading an average of 2.5% copper after factoring for 25% dilution.
No cut-off grade was reported. This historic resource was not calculated to current specifications and
standards, and it is not compliant with National Instrument 43-101. It can not be deemed to be a current
resource and it can not be relied upon. As noted below, the Company is not considering the estimate as
current and further drilling is needed in order to upgrade the historical resource estimate.
The Company believes that the historical estimates are relevant to conduct exploration on the Alwin
Project.
From 2005 until 2008 San Marco Resources Inc. explored the Alwin property. Work included 3 -
dimensional induced polarization and soil surveys, and geological mapping that covered the whole
property area. In 2008, San Marco Resources Inc. conducted 1,304.5 m of NQ diamond drilling in 8 holes.
The first five holes (DDH 1 to 4A) were drilled into the main mineralized trend near the eastern part of
the mine workings. The last three holes (DDH 5 to 7) tested induced polarization anomalies nort h and
northwest of the mine. See the accompanying table for significant drill intersections.
Significant Intersections from the 2008 San Marco Drilling on the Alwin Property with Copper
>0.1%
Drill Hole U.T.M.
Location
Intersect m Length m Copper
%
Molybdenum
%
Gold gm/mt
DDH 08-01 5,593,558 N. 67.5-69 1.5 0.1509 0.0087 0.028
(20°/-45°) 635,536 E. 87.5-88.5 1.0 0.1287 0.0032 0.041
89.5-90-5 1.0 0.1168 trace 0.004
DDH 08-02 5,593,558 N. 20.8-21.2 0.5 8.4530 0.0473 0.092
(20°/-65°) 635,536 E. 23-24.5 1.5 0.2884 0.0553 0.018
27.3-27.5 0.2 10.5300 0.2230 0.039
79.5-83 3.5 0.1206 0.0059 0.023
116.5-118 1.5 0.2042 0.0002 0.002
129.3-133.3 4.0 0.3714 0.0001 0.007
(including (including
132.9-
133.3)
0.40 2.4580 0.0001 0.031
140-141 1.0 0.2457 0.0002 0.006
149-151 2.0 0.4271 0.0320 0.004
155.8-159.2 3.7 0.4384 0.0005 0.001
DDH 08-03 5,593,580 N. 35.9-39.5 3.6 0.2756 0.0018 0.018
(20°/-45°) 635,450 E. (including (including
35.9-36.5) 0.6) 1.9210 0.0024 0.022
49.5-52.8 3.3 2.3689 0.0201 0.071
74-76.2 2.2 1.4051 0.0027 0.043
(including (including
75.5-76.2) 0.7) 3.7870 0.0069 0.111
82.5-87.5 5.0 0.6992 0.0019 0.017
102.5-104 1.5 0.6879 0.1715 0.008
DDH 08-04A 5,593,549 N. 17.5-19 1.5 0.4548 0.0003 0.054
(20°/-67°) 635,427 E. 40-41 1.0 0.1203 0.0063 0.007
92-93.5 1.5 0.1994 0.0014 0.001
111.5-113 1.5 0.1801 0.0020 trace
114-115 1.0 0.8062 0.0009 0.004
117-130.5 13.5 1.8571 0.0046 0.383
(including (including
124.3-125.2 0.9 4.1080 0.0117 0.944
127.5-
130.5)
3.0) 6.2223 0.0093 1.454
DDH 08-05 5,594,088 N. 153.5-155 1.5 0.2734 0.0030 0.002
(20°/-67°) 635,437 E. 187.5-189 1.5 0.1189 0.0002 0.001
194.9-196.5 1.6 1.3120 0.0221 0.014
196.8-197.5 0.7 1.5420 0.0002 0.029
204-205 1.0 0.1955 0.0003 0.001
211-216 5.0 0.1089 0.0006 0.003
DDH 08-06 5,594,368 N. 183-184 1.0 0.5953 0.0016 0.007
(180°/-66°) 634,958 E. 207.8-217.5 9.7 0.6268 0.0022 0.003
(including (including
210-211.2) 1.2) 2.2050 0.0120 0.007
220-221.5 1.5 0.1302 0.0004 trace
DDH 08-07
(240°/-60°)
5,594,609 N.
634,637 E.
166-167.5
199.5-200.3
1.5
0.8
0.1409
0.5618
0.0008
0.0001
0.003
trace
NOTE: Bold indicates concentrations in excess of 1% copper, 0.1% molybdenum, and 1 gm/mt gold.
Core samples from the 2008 San Marco drilling were taken to Acme Analytical Labs Ltd. (an independent
laboratory) of Vancouver, British Columbia where they were crushed, split, and pulverized to 200 mesh.
Splits were subjected to 1:1:1 aqua regia digestion and analyzed by induced coupled plasma (ICP -MS)
analysis. Splits of samples with copper concentrations in excess of 10,000 ppm (1%) were subjected to
aqua regia digestion and analyzed with fire assay. The Company detected no significant quality
assurance/quality control (QA/QC) issues during review of the data. The Company is not aware of any
drilling, sampling, recovery or other factors that could materially affect the accuracy or reliability of the
data referred to herein.
Core logging revealed that two separate mineralizing events occurred in the Alwin property area. The
first was classic Triassic-age porphyry copper and molybdenum mineralization related to mineralization
at the adjacent Highland Valley copper mine (the Highland Valley event). The second was vein copper
mineralization probably of Cretaceous age (the Alwin event), that progressed upward along re -opened
channels of previous porphyry mineralization. The Alwin event mineralization is expressed as veins and
irregular bodies comprising mostly chlorite, quartz, chalcopyrite, and bornite. Original Highland Valley
porphyry mineralization around the Alwin mine workings typically grades up to about 0.4% copper. Core
from rock enhanced by Alwin-event mineralization grades up to about 10.5% copper. Rock mined
underground on the property in the early 1970s and early 1980s graded an average of 1.52% and 1.54%
respectively after dilution.
Further Exploration
GSP recently received a large amount of information regarding previous exploration, drilling, and mining.
The Company’s immediate plan is to digitize all data regarding the Alwin property and to produce a 3-
dimensional model of mineralization in order to determine the best wa y to proceed with the property’s
development. It is expected that the next phase of exploration will include drilling around and beneath
the Alwin mine workings.
Terms of the Option Transaction
Under the terms of the option agreement, GSP may acquire a 100% interest in the Alwin Project by
making certain staged cash payments and share payments of common shares in the capital of GSP to the
Vendors.
a. Cash payable:
i. CAD$25,000 upon receipt of TSX Venture Exchange approval of the Option
Agreement (the “Approval Date”);
ii. CAD$25,000 on or before the 1st Anniversary of the Approval Date;
iii. CAD$25,000 on or before the 2nd Anniversary of the Approval Date;
iv. CAD$50,000 on or before the 3rd Anniversary of the Approval Date;
v. CAD$50,000 on or before the 4th Anniversary of the Approval Date; and
vi. CAD$75,000 on or before the 5th Anniversary of the Approval Date.
b. GSP common shares:
i. 200,000 on the Approval Date;
ii. 200,000 on or before the 1st anniversary of the Approval Date;
iii. 300,000 on or before the 2nd Anniversary of the Approval Date;
iv. 400,000 on or before the 3rd Anniversary of the Approval Date;
v. 500,000 on or before the 4th Anniversary of the Approval Date;
vi. 900,000 on or before the 5th Anniversary of the Approval Date; and
vii. 2,000,000 on or before the earlier of a bankable feasibility study and the 8 th
anniversary of the Approval Date.
c. Gross Smelter Returns Royalty (“GSR Royalty”):
i. 1.8% GSR Royalty to the Vendors with GSP’s option to repurchase 0.8% GSR
Royalty for CAD$1.5 million, leaving the Vendors with a 1% GSR Royalty.
Qualified Person
The scientific and technical information contained in this news release as it relates to the Alwin Project
has been reviewed and approved by John Ostler; M.Sc., P.Geo., a consultant to the Company and a
“Qualified Person” as defined in National Instrument 43-101 – Standards of Disclosure for Mineral
Projects. Mr. Ostler verified the data disclosed which includes a review of the analytical and test data
underlying the information and opinions contained therein. Mineralization hosted on nearby properties is
not necessarily indicative of mineralization that may be hosted on the Alwin property. The Company is
not treating this historical resource estimates as current mineral resources and the Qualified Person
responsible for review of the historical resource estimates on behalf of the Company has not performed
significant work to classify the historical resource estimates as a current mineral resource. The Company
has not undertaken any verification of the historical data upon which the historical estimates are based
on.
About GSP Resource Corp. : GSP Resource Corp. is a miner al exploration & development company
focused on projects located in Southwestern British Columbia. The Company has an option to acquire a
100% interest and title to the Alwin Copper-Gold -Silver Property in the Kamloops Mining Division, as
well as an option to acquire 100% interest and title to the Olivine Mountain Property in the Similkameen
Mining Division.
Contact Information - For more information, please contact:
Simon Dyakowski, Chief Executive Officer & Director
Tel: (604) 619-7469
Email: [email protected]
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.
Forward-Looking Information
This news release contains “forward‐looking information or statements” within the meaning of applicable securities laws,
which may include, without limitation, statements that address the TSX Venture Exchange approval of the option
agreement, completion of 3-dimensial model of the Alwin Project, conduct exploration work on the Alwin Project, other
statements relating to the technical, financial and business prospects of the Company, its projects and other matters. All
statements in this news release, other than statements of historical facts, that address events or developments that the
Company expects to occur, are forward-looking statements. Although the Company believes the expectations expressed
in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future
performance and actual results may differ materially from those in the forward-looking statements. Such statements and
information are based on numerous assumptions regarding present and future business strategies and the environment in
which the Company will operate in the future, including the price of metals, the ability to achieve its goals, that general
business and economic conditions will not change in a material adverse manner, that financing will be available if and
when needed and on reasonable terms. Such forward-looking information reflects the Company’s views with respect to
future events and is subject to risks, uncertainties and assumptions, including those filed under the Company’s profile on
SEDAR at www.sedar.com. Factors that could cause actual results to differ materially from those in forward looking
statements include, but are not limited to, continued availability of capital and financing and general economic, market
or business conditions, adverse weather conditions, failure to maintain all necessary government permits, approvals and
authorizations, failure to maintain community acceptance (including First Nations), increase in costs, litigation, and
failure of counterparties to perform their contractual obligations. The Company does not undertake to update forward‐
looking statements or forward‐looking information, except as required by law.