Margaret Lake Diamonds Acquires Option to Purchase Uranium Property - Mormon Lake, Payson, Arizona
Margaret Lake Diamonds Acquires Option to Purchase Uranium Property - Mormon
Lake, Payson, Arizona
VANCOUVER, BC / January 17, 2022 / Margaret Lake Diamonds Inc. ("MLD" or the "Company")
(TSXV:DIA) (FKT:M85) (OTC PINK:DDIAF) is pleased to announce it has entered into a purchase
option agreement with Gold Express Mines, Inc. ("GEM") whereby MLD has been granted sole and
exclusive rights and the option to acquire a 100% interest (and the "Option") in the Mormon Lake
Uranium property consisting of twenty (20) unpatented mining claims located near Payson, Arizona.
The claims are reached by heading east from Payson on Arizona Highway No. 260 for 17 miles
and then north a short distance on a solid unpaved dirt road.
The Company has received historical data from GEM indicating sampling and drilling work was
undertaken on the claims in the early 1970’s. For example, Pan American Mines, Ltd. drilled 11
holes in a phase one program and an additional 8 drill holes in a phase two program. Results
ranged from 0.12% U3O8 to 0.63% U3O8. The best interval reported was 1.34% U3O8 over an
interval of 28.5 feet and at a depth of 56 feet below the surface.
The Company is not treating these historical results as current and has not completed suffi cient
work to verify such historical results. Furthermore, while the Company is not treating these historical
results and numbers as confirmed to be accurate, it does believe the numbers to be reliable and
may be of assistance to readers. The Company inten ds to initiate sampling and drilling programs
to independently verify or disclaim these historically reported results.
Geology and Mineralization
According to past reports the rocks underlying the claims consist of dominantly pink siltstone and
sandstone with a few narrow, light-grey interbeds. The basal part of the uranium-bearing layer is a
limestone conglomerate with a quartzose matrix, often associated with grey impure sandstone. The
layers may not be continuous for any great distance along the stri ke or down dip. Instead,
interfingering and facial changes may be expected to occur. Whether this is stream channel -type
mineralization or a deltaic form of mineralization is yet to be determined.
The mineralization is likely uraninite and the uranium -bearing layer, based on the historical
descriptions, seems to have an east-west strike and is parallel to that of the overlying sandstones.
The Transaction
The purchase option has been granted to MLD for a period of ninety days at no cost. Should MLD
exercise the purchase option it will issue 500,000 common shares to GEM (the "Consideration
Shares") at current market price per share and make a cash payment of USD $30,000. In addition,
GEM will retain a 2% (NSR) net smelter royalty on the existing claims and any other claims staked
or acquired by MLD within a two -mile area of interest. Closing of the transaction is subject to
approval of the transaction by the TSX Venture Exchange. Further details regarding the geology
and mineralization of the Property will be disclosed as available.
Qualified Person
The technical content of this news release has been reviewed and approved by Jim Baughman,
P.Geo., who is a Qualified Person (QP) as defined by National Instrument 43- 101, Standards of
Disclosure for Mineral Projects. The QP has not completed sufficient work to verify the historic
information on the properties comprising the Mormon Lake Property, particularly regarding
historical exploration and reported geological work. The information provides an indication of the
exploration potential of the Property but may not be representative of expected results.
Director and Officer Changes
The Board of the Company wishes to announce the resignation of Mr Patrick Butler from the Board
of the Company effective as of January 17, 2022. The Company thanks Mr Butler for his service
and wishes him the best in all future ventures.
Additionally, the Board of the Company is pleased to announce the appointment of Mr Joel Warawa
to the Board of Directors, replacing Mr Butler. Mr Warawa has extensive business experience
working in both private and publicly traded enterprises. He specializes in brand awareness,
marketing, business development, public relations, and investor communications. He has worked
in numerous sectors such as automotive, consumer, and energy commodities including the mining
sector. It is anticipated that Mr Warawa will also be named Vice President Corporate Development,
effective February 1, 2022.
On behalf of the board
Margaret Lake Diamonds Inc. "Neil Foran" President/Chief Executive Officer, Director
Tel: 778.321.4638 email: [email protected]
Disclaimer for Forward-Looking Information:
Certain statements in this release are forward- looking statements, which reflect the expectations
of management. Forward-looking statements consist of statements that are not purely historical,
including any statements regarding beliefs, plans, expectations, or intentions regarding the future.
Forward-looking statements in this press release relate to, among other things: completion of the
proposed Arrangement. Actual future results may differ materially. There can be no assurance that
such statements will prove to be accurate, and actual results and future events could differ
materially from those anticipated in such statements. There is no assurance any of the conditions
for closing will be met. Forward-looking statements reflect the beliefs, opinions, and projections on
the date the statements are made and are based upon a nu mber of assumptions and estimates
that, while considered reasonable by the respective parties, are inherently subject to significant
business, economic, competitive, political and social uncertainties and contingencies. Readers
should not place undue reliance on the forward- looking statements and information contained in
this news release concerning these times. Except as required by law, the Company does not
assume any obligation to update the forward -looking statements of beliefs, opinions, projections,
or other factors, should they change, except as required by law
Neither 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.