Fremont Announces Amendment to Cobb Creek Option Agreement
Fremont Announces Amendment to Cobb
Creek Option Agreement
Vancouver, British Columbia--(Newsfile Corp. - October 9, 2020) -
Fremont Gold Ltd. (TSXV: FRE)
(OTCQB: FRERF) (FSE: FR2) ("Fremont" or the "Company")
is pleased to announce that it has
amended the terms of its option agreement relating to the Cobb Creek gold project ("
Cobb Creek
"), an
advanced-stage gold project located in Elko county, Nevada.
In September 2019, the Company entered into an option agreement (the "
Option Agreement
") with
Clover Nevada II, LLC ("
Clover
"), a wholly owned subsidiary of Contact Gold Corp. (TSXV: C), to
acquire a 100% interest in Cobb Creek (see news release dated September 30, 2019).
The terms of the Option Agreement included a requirement for the Company to pay US$30,000 to
Clover on September 27, 2020 (the "
First Anniversary Payment
").
Clover have agreed to amend the
terms of the option agreement as follows:
extend the date of payment of the First Anniversary Payment to December 31, 2020; and
reduce the amount due under the First Anniversary Payment from US$30,000 to US$15,000.
As consideration for this change in the terms of the Option Agreement, Fremont will issue 500,000
common shares to Clover immediately following the Company's receipt of approval from the TSX
Venture Exchange (the "
Exchange
") to do so.
All other terms of the Option Agreement remain unchanged.
The amendment to the Option Agreement, including the issuance of 500,000 Fremont common shares,
is subject to approval by the Exchange. The 500,000 Fremont common shares will be subject to a
statutory hold period.
Cobb Creek highlights
Historical mineral resource estimate
: The McCall deposit, one target area within Cobb Creek,
contains a historical mineral resource estimate (not NI 43-101 compliant) which is set out in the
table below.
Resource
Mineralized
Cut-Off
Grade
Ounces
Classification
Zone
(opt)
Tons
(opt)
Gold
Indicated
Oxide
0.01
1,362,233
0.04
54,864
Indicated
Sulphide
0.01
2,378,000
0.05
118,134
The historical mineral resource estimate ("Historical Estimate") was performed by and reported in a
technical report prepared by Michael R. Pawlowski for Stacatto Gold Resources Ltd. and dated October
30, 2004
1
. The Historical Estimate is based on a total of 72 drill holes with continuous zones of gold
assays above 0.01 opt gold that could be reasonably interpreted to be continuous in three dimensions
based on the construction of nine cross sections, 200 feet apart. The methodology employed in the
Historical Estimate is detailed in the 2004 technical report by Pawlowski
1
.
A qualified person has not
done sufficient work to classify the Historical Estimate as a current mineral resource or mineral reserve
and Fremont is not treating the Historical Estimate as a current mineral resource or mineral reserve. In
order to consider the Historical Estimate as current mineral resources or mineral reserves,
Fremont
needs to retain a qualified person to verify historical drilling and assaying methods and validate historical
results, add any drilling and assaying or other pertinent geological information generated since the last
estimation, and complete an updated resource estimate and a new technical report.
Historical exploration:
Cobb Creek has not been drilled since 1992 and most of the historical
drilling (over 140 drill holes) was very shallow. Some of the better drill results include drill hole
COBRC-3, which returned 15.3 metres of 2.86 g/t gold (from 13.7 metres to 29.0 metres), and
COBRC-84, which returned 33.5 metres of 1.92 g/t gold (from 18.3 metres to 51.8 metres),
including 12.2 metres of 4.09 g/t gold.
Exploration potential:
Cobb Creek is underexplored. Fremont believes that there is good
potential to expand the Historical Estimate at McCall and for the discovery of a Carlin-type target.
Additionally, a number of exploration targets (Beaver, Silica Ridge, O, and Van Duzer Ridge) have
not been drilled or were not followed up despite returning very anomalous gold values
(see Figure
1).
Location:
Cobb Creek is comprised of 167 unpatented mining claims and is located at the
northern end of the Independence Trend, close to Highway 225 (see Figure 2). Western
Exploration's new gold discovery, Gravel Creek, is located approximately 6 kilometres to the
southeast. It has been reported that Gravel Creek "
contains an in-place unclassified mineral
inventory of 1.4 million ounces of gold and 21 million ounces of silver…
". (Muntean, Davis, and
Ayling, 2017, p. 22)
2
.
Figure 1:
Cobb Creek exploration targets
To view an enhanced version of Figure 1, please visit:
https://orders.newsfilecorp.com/files/3169/65672_e3997871643e7a48_002full.jpg
Figure 2:
Cobb Creek location
To view an enhanced version of Figure 2, please visit:
https://orders.newsfilecorp.com/files/3169/65672_e3997871643e7a48_003full.jpg
Qualified person
The content of this news release was reviewed by Maury C. Newton, III, Fremont's V.P. Exploration, a
qualified person as defined by National Instrument 43-101.
About Fremont
Fremont's mine-finding management team has assembled a portfolio of high-quality Nevada gold
projects with the goal of making a new discovery. The Company's flagship project is the past-producing
Griffon gold project, located at the southern end of the Cortez Trend. Fremont's other projects include
Cobb Creek, North Carlin, and Hurricane.
1
Pawlowski, M.R., 2004, Technical report on the Cobb Creek Property, McCall Area, Elko County,
Nevada.
2
Muntean, J.L., Davis, D.A., and Ayling, B., 2017, The Nevada Mineral Industry 2015, Special
Publication MI-2015, Nevada Bureau of Mines and Geology.
On behalf of the Board of Directors,
"Blaine Monaghan"
Blaine Monaghan
CEO
Fremont Gold Ltd.
For further information, contact:
Corporate Information
Fremont Gold Ltd.
Blaine Monaghan, CEO
Telephone:
+1 604-676-5664
www.fremontgold.net
https://twitter.com/GoldFremont
https://www.linkedin.com/company/fremont-gold/
Investor Inquiries
G2 Consultants Corp.
Telephone: +1 778-678-9050
Email:
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 statements
Certain statements and information contained in this press release constitute "forward-looking
statements" within the meaning of applicable U.S. securities laws and "forward-looking information"
within the meaning of applicable Canadian securities laws, which are referred to collectively as
"forward-looking statements". The United States Private Securities Litigation Reform Act of 1995
provides a "safe harbor" for certain forward-looking statements. Forward-looking statements are
statements and information regarding possible events, conditions or results of operations that are
based upon assumptions about future economic conditions and courses of action. All statements and
information other than statements of historical fact may be forward-looking statements. In some cases,
forward-looking statements can be identified by the use of words such as "seek", "expect", "anticipate",
"budget", "plan", "estimate", "continue", "forecast", "intend", "believe", "predict", "potential", "target",
"may", "could", "would", "might", "will", "hope", "will be", "expected" and similar words or phrases
(including negative variations) suggesting future outcomes or statements regarding an outlook.
Forward-looking statements in this and other press releases include but are not limited to statements
and information regarding a new Cobb Creek
technical report, the potential to expand the historical
mineral resource estimate at McCall, promising exploration targets at Cobb Creek, the potential for
the discovery of a Carlin-type target at Cobb Creek, and Exchange approval of the amended Option
Agreement and the issuance of Fremont Shares. Such forward-looking statements are based on a
number of material factors and assumptions and involve known and unknown risks, uncertainties and
other factors which may cause actual results, performance or achievements, or industry results, to
differ materially from those anticipated in such forward-looking information. You are cautioned not to
place undue reliance on forward-looking statements contained in this press release. Actual results
and future events could differ materially from those anticipated in such statements. Fremont
undertakes no obligation to update or revise any forward-looking statements included in this press
release if these beliefs, estimates and opinions or other circumstances should change, except as
otherwise required by applicable law.
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