TSX V: LOT
TOMAGOLD ACQUIRES THE
ITS POSITION
Property is an old gold producer that includes one mining concession
Montreal, Quebec, May 31, 2016 “Corporation”) is pleased to announce t property from David Malouf and 2736 one mining concession cov ering a total of 344.8 hectares Quebec.
The Obalski property hosts seven separate mineralized zones, one 85 A total of 230 holes have been drilled on the prope rty for a total of over 60,000 metres of drilling, most of which was surface drilling. In 1964, United Obalski Mining tons grading 3.0 g/t Au, 6. 2 g/t Ag
"The acquisition of the Obalski property is gold properties in the Chibougamau mining camp,” sa id David Grondin, President and CEO of TomaGold. “Interestingly, we see There has been a fair amoun t of drilling on the Obalski property, but most of it was shallow drilling. Based on a preliminary excellent potential for a discovery te chnologies, we will be able to better target future exploration work.”
The Obalski property transaction is issued following signature of the agreements will b e subject to a hold period of four months plus one day.
Mineralization
The re are seven separate mineralized zones on the and G, have been defined by drilling, trenching and geophysical surveys also had underground development done on them copper with small amounts of pyrite and chalcopyrite with local shear zones dipping steeply southwest and system of mafic to intermediate gold grades are found in quartz-carbonate massive sulphide veins
History
PRESS RELEASE
TOMAGOLD ACQUIRES THE OBALSKI PROPERTY AND CONSOLIDATES
POSITION IN THE CHIBOUGAMAU MINING CAMP old gold producer that includes one mining concession 2016 - TomaGold Corporation (TSXV: LOT) (“TomaGold” or the “Corporation”) is pleased to announce t hat it has signed an agreement to acquire the Obalski David Malouf and 2736 -1179 Quebec Inc.. The property consi sts of 22 claims ering a total of 344.8 hectares and lies 3 km south of ski property hosts seven separate mineralized zones, one 85 -metre shaft and two ramps.
A total of 230 holes have been drilled on the prope rty for a total of over 60,000 metres of drilling, most of which was surface drilling. In 1964, United Obalski Mining Co. Ltd. mined a total of 2 g/t Ag and 1.53% Cu from the property.
Obalski property is fully in line with our strategy of developing promising gold properties in the Chibougamau mining camp,” sa id David Grondin, President and CEO of we see the same scenario here as at Monster Lake when t of drilling on the Obalski property, but most of it was shallow preliminary review of the data collected, we believe that the property has discovery at depth. W e also believe that with today’s chnologies, we will be able to better target future exploration work.”
Obalski property transaction is subject to regulatory approval, and the common shar es to be issued following signature of the agreements will b e subject to a hold period of four months plus re are seven separate mineralized zones on the Obalski property. Four of them, Zones A, C, D by drilling, trenching and geophysical surveys . Zones had underground development done on them . The mine ralization consists of gold and silver and smaller amounts of zinc. The dominant sulphides are local sphalerite and pyrrhotite. The mineralization generally southwest and striking ENE and ESE, intersecting or bordering on to intermediate dykes running through the granophyres and diorites. The best carbonate massive sulphide veins .
PRESS RELEASE
PROPERTY AND CONSOLIDATES
MINING CAMP old gold producer that includes one mining concession (“TomaGold” or the has signed an agreement to acquire the Obalski sts of 22 claims and lies 3 km south of Chibougamau, metre shaft and two ramps.
A total of 230 holes have been drilled on the prope rty for a total of over 60,000 metres of drilling, Co. Ltd. mined a total of 90,093 with our strategy of developing promising gold properties in the Chibougamau mining camp,” sa id David Grondin, President and CEO of when we acquired it.
t of drilling on the Obalski property, but most of it was shallow of the data collected, we believe that the property has e also believe that with today’s exploration subject to regulatory approval, and the common shar es to be issued following signature of the agreements will b e subject to a hold period of four months plus of them, Zones A, C, D Zones A, D and G have ralization consists of gold and /or zinc. The dominant sulphides are sphalerite and pyrrhotite. The mineralization generally occurs in intersecting or bordering on a the granophyres and diorites. The best
1928: Initial exploration work was carried out by O balski Mining Syndicate Ltd. Work consisted primarily of prospecting, sampling, trenching and stripping. Zones A, B, C and D were identified.
1946: Obalski Ltd. sunk a three-compartment shaft at a depth of 85 metres and drove 240 metres of drifting in Zone D on the -40-metre and -80-metr e levels, as well as 115 metres of crosscutting in the direction of Zones A and C.
1964: United Obalski Mining Co. Ltd . mined Zone Q on the -80-metre level, producing a total of 90,093 tons grading 3.0 g/t Au, 6.2 g/t Ag and 1.53% Cu.
1971: Campbell Chibougamau drove a 300-metre ramp f ollowed by 150 m of drifting on Zone G. The zone was found to be strongly erratic, and work was halted.
1983: Surface mining took place on Zone D. A total of 9,000 tons at 8.5 g/t Au were mined.
1987: The last major drilling program was carried o ut by Syngold on Zones A and G, totalling almost 15,000 metres.
The most recent drilling was done by a prospector i n 2012, and consisted of six short holes drilled on Zone C. The results were as follows:
Hole From To Length Au Ag Cu Zn
DM-12-01 37.0 m 37.8 m 0.8 m 9.72 g/t 19.50 g/t 0.8 2% 0.44%
DM-12-02 33.6 m 34.2 m 0.6 m 1.81 g/t 5.40 g/t 0.16 % 0.03%
DM-12-03 45.5 m 47.4 m 1.9 m trace values
DM-12-04 35.0 m 37.8 m 2.8 m 27.81 g/t 23.74 g/t 1. 15% 0.24%
DM-12-05 45.0 m 46.7 m 1.7 m 12.30 g/t 16.95 g/t 0. 83% 0.03%
DM-12-06 42.1 m 43.0 m 0.9 m 2.66 g/t 15.00 g/t 2.0 0% 0.54%
Based on observation of the sections available, the ratio of true thickness to core length is about 70%.
"The next step is to compile all the data we have o n hand and build a 3D model of the project, which might entail re-assaying of some of the samples. Once we have done that, we will decide on a strategy to ensure optimal exploration of the property,” Mr. Grondin concluded.
To acquire a 100% interest in the Obalski property, TomaGold must issue 4 million of its shares to David Malouf and 2736-1179 Quebec Inc. and make cas h payments totalling $500,000 over four years, including $100,000 upon signature of the agreement. The property is also subject to a 3.5% net smelter return, of which 1.25% can be bought back for $1 million.
Private Placement
TomaGold also announced the first closing of a non- brokered private placement in the amount of $334,340 of a maximum amount of $1,000,000.
The private placement consists in the issuance of 3 ,714,884 common shares priced at $0.09 per share and 1,857,442 warrants. Each warrant entitles its holder to purchase one common share of the Corporation at $0.12 within a twelve-month period.
TomaGold will use the proceeds from the private pla cement for exploration work, acquisitions, and for working capital purposes. The securities issued under the private placement are subject to a resale restriction period of four months and one day.
These transactions are subject to regulatory approval.
The technical content of this press release has been reviewed and approved by André Jean, Eng., a qualified person as defined by National Instrument 43-101.
About TomaGold Corporation
TomaGold Corporation is a Canadian-based mining exploration company whose primary mission is the acquisition, exploration and development of gold projects in Canada and abroad.
Contact:
David Grondin
President and Chief Executive Officer (514) 583-3490 www.tomagoldcorp.com
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