TomaGold announces drilling results on Monster Lake, ends proposed spin-out, reapplies for trading and concludes property transactions
PRESS RELEASE
TSXV: LOT
TomaGold announces drilling results on Monster Lake, ends proposed
spin-out, reapplies for trading and concludes property transactions
Montreal, Quebec, August 13, 2020 - TOMAGOLD CORPORATION (TSXV: LOT) (“TomaGold” or the
“Corporation”) announces that it has decided to end its proposed spin-out. Trading of the Company's
shares was halted on January 25, 2019 in accordance with the policies of the TSX Venture Exchange
(“TSXV”) pending completion of the proposed spin-out. Given the termination of the proposed spin-out,
the Corporation will file an application with the TSXV to request that trading of its common shares be
resumed on the TSXV. The Corporation will confirm in a press release the date on which trading of its
common shares will resume on the TSXV.
“The Board of Directors has decided that the time has come for TomaGold to resume trading in its securities
by terminating the spin-out,” said David Grondin, President and Chief Executive Officer of TomaGold.
“During this period of inactivity, TomaGold's gold assets have increased in value, particularly with the rise
in the price of gold and the renewed activity in the Chibougamau mining camp. We are now in a much
better position with an interest in the high-grade Monster Lake deposit and other quality mining projects
located in key areas, as well as interests in promising mining companies. Our objective will be to continue
to enhance the value of our assets.”
Summary of recent property transactions:
Lac Doda property
The Corporation has proceeded with the closing of the option agreement for the sale of up to an 80%
interest in the Lac Doda property to Goliath Resources Limited (TSXV: GOT) ("Goliath") (see press release
dated July 9, 2020). As provided in the agreement, Goliath issued to TomaGold 625,000 common shares
and 625,000 warrants, with each warrant entitling the holder to acquire one common share of Goliath at
a price of $0.24 for a period of 36 months.
Monster Lake property
On August 12, 2020, the Corporation acquired the 2.5% interest held by Quinto Resources Inc. (TSXV: QIT)
in the Monster Lake property for a cash payment of $250,000 and the return of 750,000 shares of Quinto
held by TomaGold. The closing of the transaction will take place no later than September 9, 2020. Following
this transaction, TomaGold will hold a 25% interest in the Monster Lake property, with IAMGOLD
Corporation (“IAMGOLD”) holding 75%.
IAMGOLD intersects mineralization along strike at Monster Lake:
IAMGOLD today announced assay results from the 2020 drilling program completed at its Monster Lake
joint venture project (IAMGOLD: 75%, TomaGold: 25%). IAMGOLD is reporting the final assay results from
6 drill holes, totaling 2,991 metres, completed as part of the 2020 exploration program.
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The assay results are provided in Table 1 below and include the following highlights:
(A drill hole plan map and longitudinal section are attached to this news release)
Annie Shear Zone system:
• Drill hole ML-20-253: 3.8 metres grading 16.9 g/t gold
§ Includes: 1.03 metres grading 7.36 g/t gold
§ Includes: 0.80 metres grading 66.50 g/t gold
• Drill hole ML-20-255: 4.0 metres grading 1.89 g/t gold
Big Mama Shear Zone:
• Drill hole ML-20-251: 2.82 metres grading 5.63 g/t gold
Main Shear Zone area:
• Drill hole ML-20-252: 12.3 metres grading 2.09 g/t gold
The Monster Lake joint venture project (on a 100% basis) hosts a Mineral Resource comprising 1,109,700
tonnes of inferred resources averaging 12.14 grams of gold per tonne for 433,300 ounces of cont ained
gold, assuming an underground mining scenario (see news releases dated March 28, 2018 and February
18, 2020), as prepared in accordance with National Instrument 43-101 (“NI 43-101”) Standard of Disclosure
for Mineral Projects.
The objective of the 2020 drilling program was to test priority areas along the strike of the main Monster
Lake structural corridor, which hosts the 325-Megane zone, for additional zones of mineralization with
potential to increase total mineral resources on the property. The focus was on testing the Annie Shear
Zone extending to the northeast along strike of the 325 -Megane zone in an effort to extend the
mineralization intersected during 2019. The program was executed in two phases due to the suspension
of activities in March 2020, as directed by the Government of Quebec in response to the COVID-19 crisis.
The program was subsequently restarted, and completed in June 2020.
IAMGOLD next steps
These drilling results will be incorporated into the structural and deposit models and used to guide the next
drilling programs. Ongoing field activities for the summer season includes geological and geochemical
surveys. Regional structural studies continue to support exploration targeting.
About the Monster Lake Project
The Monster Lake project is located 50 kilometres southwest of Chibougamau, Quebec, and is underlain
by Archean volcanic rocks of the Obatogamau Formation, which are traversed by an important deformation
corridor with associated gold-bearing mineralized structures. Exploration to date has traced this
prospective structural shear zone system for at least 4 kilometres along strike, along which several gold
prospects have been discovered and a Mineral Resource delineated at the 325-Megane Zone.
The Monster Lake Project is held under a joint venture agreement with IAMGOLD, which holds an undivided
75% interest in the property after having fulfilled the terms of its second earn-in at the end of 2019. Should
a development decision be made by the joint venture, or should the joint venture declare commercial
production, TomaGold would be entitled to a further C$1.0 million payment.
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Technical Information and Quality Control Notes
The drilling results contained in this news release have been prepared in accordanc e with NI 43-101
Standards of Disclosure for Mineral Projects.
Work at IAMGOLD is carried out under the supervision of Marie-France Bugnon, P. Geo., General Manager
Exploration. Marie-France is considered a “Qualified Person” for the purposes of NI 43-101 with respect to
the technical information being reported on. The technical information has been included herein with the
consent and prior review of the above noted Qualified Person. The Qualified person has verified the data
disclosed, and data underlying the information or opinions contained herein.
The design of the drilling program and interpretation of results is under the control of IAMGOLD’s
geological staff, including qualified persons employing strict protocols consistent with NI 43 -101 and
industry best practices. The sampling of, and assay data from, the drill core is monitored through the
implementation of a quality assurance - quality control (QA-QC) program. Drill core (NQ size) is logged and
samples are selected by the IAMGOLD geologists and sawn in half with a diamond saw at the project site.
Half of the core is retained at the site for reference purposes. Sample intervals may vary from half a metre
to one and a half metres in length depending on the geological observations.
Half-core samples are packaged and transported in sealed bags to ALS Minerals Laboratory (“ALS”) located
in Val-d’Or, Québec. Samples are coarse crushed to a -10 mesh and then a 1,000 gram split is pulverized to
95% passing -150 mesh. ALS processes analytical pulps directly at their facilities located in Val-d’Or which
is ISO / IEC 17025 certified by the Standards Council of Canada. Samples are analyzed using a standard fire
assay with a 50 gram charge with an Atomic Absorption (AA) finish. For samples that return assay values
over 5.0 grams per tonne, another pulp is taken and fire assayed with a gravimetric finish. Core samples
showing visible gold or samples which have returned values greater than 10.0 grams per tonne are re -
analyzed by pulp metallic analysis. IAMGOLD inserts blanks and certified reference standards in the sample
sequence for quality control.
The technical content of this press release has been reviewed and approved by Claude P. Larouche, Eng.,
a qualified person under National Instrument 43-101.
The resumption of trading of the Corporation's securities and the transaction with Quinto Resources Inc.
are subject to regulatory approval.
About TomaGold Corporation
TomaGold Corporation is a Canadian mineral exploration Corporation engaged in the acquisition,
assessment, exploration and development of gold mineral properties. It currently has joint venture
agreements with IAMGOLD Corporation for the Monster Lake project and with Newmont Corporation and
New Gold Inc. for the Baird property. TomaGold has interests in seven gold properties near the
Chibougamau mining camp in northern Quebec: Monster Lake, Winchester, Lac à l'eau jaune, Monster Lake
East, Monster Lake West, Obalski and Lac Doda. It also holds a 24.5% interest in the Baird property near
the Red Lake mining camp in Ontario, and has a 70% interest in the Hazeur property, at the southern edge
of the Monster Lake group of properties.
Contact:
David Grondin
President and Chief Executive Officer
(514) 583-3490
www.tomagoldcorp.com
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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 news release. The statements in this
news release that are not historical facts are "forward -looking statements". Readers are cautioned that any such
statements are not guarantees of future performance, and that actual developments or results may vary materially from
those described in such "forward-looking" statements.
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Notes:
1. Drill hole intercepts are calculated using a 0.50 g/t Au assay cut-off.
2. True widths of intersections are approximately 60 to 84% of the core interval.
3. Assays are reported uncut but high grade sub-intervals are highlighted.
Hole No. AZ DIP EOH From To Interval True Width
(2) Au (1) (3) NOTE
Easting Northing Elevation (°) (°) (m) (m) (m) (m) (m) (g/t)
ML-20-251 520260 5488855 373 325 -50 549.0 238.88 241.70 2.82 1.81 5.63 Big Mama Shear Zone
326.00 327.00 1.00 0.57 3.50 Monster Lake Shear Zone
ML-20-252 520405 5489142 373 315 -60 498.0 235.25 236.00 0.75 0.57 4.84 Annie - Secondary Shear Zone (02)
275.45 276.90 1.45 1.11 2.69 Annie - Secondary Shear Zone (03)
341.70 354.00 12.30 9.42 2.09 Main Shear Zone
Including (3) 350.50 353.35 2.85 2.18 4.52
ML-20-253 520638 5489191 375 315 -50 474.0 341.30 345.10 3.80 2.91 16.89 Annie - Secondary Shear Zone (02)
Including (3) 342.40 343.43 1.03 0.79 7.36
Including (3) 344.30 345.10 0.80 0.61 66.50
408.70 411.00 2.30 1.76 1.03 Annie Shear Zone
425.00 426.00 1.00 0.77 2.49
ML-20-254 520719 5489428 378 320 -58 402.0 No significant results
ML-20-255 520625 5489264 376 320 -58 504.0 301.10 303.40 2.30 1.95 2.36 Annie - Secondary Shear Zone (02)
408.20 412.20 4.00 3.39 1.89 Annie Shear Zone
ML-20-256 521025 5489790 373 330 -55 474.0 351.00 357.00 6.00 4.60 0.73 Annie Shear Zone
ML-20-256A 521025 5489790 373 330 -55 90.0 Abandonned due to excessive drill hole deviation
2991.0
Table 1 Monster Lake Project Drilling Results - 2020 Drilling Program
UTM NAD83 Zone18
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