ST. JAMES GOLD CORP. Announces Option to Acquire 100% Interest in the Quinn Lake Property Representing 1,730 acres in Emerging Central Newfoundland Island Gold District
ST. JAMES GOLD CORP. Announces Option to
Acquire 100% Interest in the Quinn Lake
Property Representing 1,730 acres in
Emerging Central Newfoundland Island Gold
District
VANCOUVER, British Columbia
,
Jan. 14, 2021
/CNW/ --
St. James Gold Corp.
(TSX – V: LORD)
(OTC: LRDJF), the "Company" is pleased to announce that it has secured the sole and exclusive
option to acquire a 100% interest in the Quinn Lake Claims comprising two contiguous map-staked
mineral licenses, for a landholding of 1,730 acres (the "Property") in the emerging prolific central
Newfoundland
island gold district. Entered into at arm's length, the Property is adjacent to Marathon
Gold.'s
Valentine Lake
property where over 4 million ounces of gold have been developed to pre-
feasibility, and situated 17 km northeast from the Marathon gold deposit and along strike of the main
gold bearing structure in the district, the Valentine Shear Zone. The Property is accessible by a
network of well-maintained seasonal gravel resource roads originating at
Millertown
approximately
35 km to the north.
The Property is located with the Exploits Subzone of the Dunnage tectonostratigraphic zone and is
underlain by rocks of the Victoria Lake supergroup, a structurally complex, composite collage of
bimodal Neoproterozoic to Ordovician arc-related magmatic and sedimentary rocks. This structurally
controlled gold district in central
Newfoundland
is emerging as a major area of gold endowment, and
occurs within a northeast-trending corridor defined by crustal-scale faults. Known as the Rogerson
Lake Conglomerate, the presence of Silurian syn-orogenic polymict reflects the preservation of syn-
orogenic upper crustal clastic sequences commonly associated with orogenic gold vein systems.
Gold deposits and other gold occurrences in the district show that mineralization can be hosted with
volcanic and epiclastic rocks that are in fault contact with the Rogerson Lake Conglomerate. This
setting is very likely the most prospective target at the Quinn Lake property.
To the southwest of the Property, the Rogerson Lake corridor hosts Marathon Gold's
Valentine
Lake
project where gold mineralization has been traced over a distance of 18 km and host to several
deposits, while along to the northeast at Wilding Lake, gold mineralization is also hosted by quartz-
tourmaline veins associated with shearing along a thrust fault within the Rogerson Lake
conglomerate. Situated between these two projects, the local geology is inferred from geophysical
surveys and adjacent projects, and indicates the presence of the Valentine Lake Shear Zone and
Rogerson Lake Conglomerate which are spatially related and define the corridor favourable for gold
mineralization.
As commented by
George Drazenovic
, CEO of St. James Gold Corp.,
"We are excited to build on
our recent Grub Line option agreement and expand our portfolio of exploration gold assets in
Newfoundland. While there has been considerable past exploration for volcanogenic base metal
mineralization surrounding the Rogerson Lake corridor, until recently, the Conglomerate has not
seen significant exploration for gold. In the past month alone, Marathon Gold announced drill
results of the Berry Zone and Narrows prospect situated southwest of our property along this
structural corridor, while northeast of our property and on strike with Marathon Gold's
Valentine
Lake
project, Canterra Minerals just announced a planned
$2.75 m
. work exploration program at
their Wilding Lake gold project. We will continue to monitor activity in this rapidly emerging gold
region, further develop the geological model, and put together a work program that will ultimately
target enhanced value for our shareholders."
Despite the emergence of recent discoveries along the gold-bearing corridor related to the Valentine
Lake Shear Zone and Rogerson Lake Conglomerate, and geological mapping surveys conducted by
the Geological Survey of
Newfoundland
and
Labrador
, little work on the Property has been
conducted to date. In 1989, one of Noranda's till sampling lines crossed the Property area and
reported anomalous values up to 528 ppb gold, while a 2013 review by Paragon Minerals of existing
airborne electromagnetic-magnetic survey data, prospecting and ground IP geophysical survey
recommended more geophysical work focusing on the Rogerson Lake Conglomerate contacts.
As stated by
George Drazenovic
,
"Recent exploration by others on the surrounding areas where
boulder trains with gold mineralization were traced to bedrock sources have led to significant gold
discoveries. However, past soil and stream sediment sampling efforts on the Property were limited
and focused on surficial materials that were not representative of underlying bedrock, and
geophysical targets, in spite of showing some promise, have not been tested by drilling. Overall,
past efforts lacked continuity and the budgets to best reflect the risk-reward scenarios for this
strategically situated area, largely due to the fact that most discoveries along this corridor have
only materialized recently. We intend to pursue a program that will test for these theories and
unlock value for our shareholders."
Subject to exchange approval, and pursuant to the terms of the option agreement, total aggregate
consideration payable by the Company is an aggregate of
$65,000
cash over three years,
exploration totalling not less than
$100,000
over three years, and the issuance of an aggregate of
300,000 common shares of the company as follows:
75,000 common shares on the approval of the option agreement by the TSX Venture Exchange;
75,000 common shares on the first anniversary of exchange approval;
75,000 common shares on the second anniversary of exchange approval;
75,000 common shares on the third anniversary of exchange approval.
The vendors will retain a royalty of 2-per-cent net smelter returns on production from the Grub Line
claims with one half of the total royalty purchasable for
$1,000,000
pre-production. Additionally, the
Company will be required to issue an additional 500,000 common shares to the vendors if at any
time before or after exercise of the option the company obtains a National Instrument 43-101 report
estimating an inferred mineral resource of not less than 100,000 ounces of gold.
A technical report for the Quinn Lake claims is being prepared in connection with the acquisition and
in accordance with National Instrument 43-101 –
Standards of Disclosure for Mineral Projects
and
the policies of the Exchange.
Historic information on the Quinn Lake claims, notably in regard to historical exploration, adjacent
companies and recent discoveries, and governmental geological compilations provide an indication of
the exploration potential of the project, but may not be representative of expected results.
Dr.
Stewart Jackson
, P.Geo., Senior Technical Advisor Geologist and Qualified Person within the
meaning of National Instrument 43-101 Standards of Disclosure for Minerals Projects, has reviewed
and approved the technical and scientific information presented herein as accurate and approved this
news release.
About St. James Gold Corp.
St. James Gold Corp. is a publicly traded company listed on the TSX Venture Exchange focused
on creating shareholder value through the discovery and development of economic mineral
deposits by acquiring prospective exploration projects with well delineated geological theories,
integrating all available geological, geochemical and geophysical datasets, and funding
efficient
exploration programs. The Company
currently holds an option to acquire a 100% interest
in 29 claims covering 1,791 acres in the Gander gold district in north-central
Newfoundland
adjacent to New Found Gold Corp.'s Queensway North project.
George Drazenovic
, CPA, CGA, MBA, CFA
CEO
St. James Gold Corp.
For further information, please contact:
George Drazenovic
, Chief Executive Officer
Tel:
1 (800) 278-2152
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
.
SOURCE
St. James Gold Corp.
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%SEDAR: 00005795E
CO: St. James Gold Corp.
CNW 16:30e 14-JAN-21