Genius Metals Announces New Gold Discovery at Sakami, Increased Land Position and a $2.5M Financing
CSE:GENI
Genius Metals Announces New Gold Discovery at Sakami, Increased
Land Position and a $2.5M Financing
MONTRÉAL, QUÉBEC, CANADA — (December 2, 2020) - Genius Metals Inc. (CSE: GENI) (“Genius Metals”
or the “Corporation”) is pleased to provide the following updates.
Discovery of a New type of Gold Mineralization at the Sakami property, James Bay Territory
The Corporation is pleased to announce the discovery of a new gold zone on its Sakami property,
located during the second phase of the summer exploration campaign . This zone of gold
mineralization, named the Trans-Taiga showing, is in the basement rocks of the Langelier Complex.
The style of mineralization is similar to the gold mineralization found on the Serpent Property owned
by Harfang Exploration Inc. located 20 Km south of Genius Metals Sakami property. Preliminary gold
assays from grab samples collected along a 10 m long SW-NW striking zone yielded values of 2.63,
1.87, 1.56 and 0.29 g/t Au respectively (Figure 1). The Trans-Taiga showing is located 2 km south
of the Trans -Taiga Road and exposes strongly sheared granitoids (tonalite/granodiorite) . The gold
mineralization is contained within the granitoids, pyrite-bearing quartz veins and in pyrite stringers.
Increased Land Position at Sakami
Following the discovery of this new gold zone, the Corporation secured additional acreage in the area
by staking 35 new claims. The newly acquired claims are contiguous to the southwestern block of the
Sakami Property, thus enabling the Corporation to secure ground extending to the Trans -Taiga
showing and the surrounding areas.
To view map click here. Geologic map of the Sakami area showing the location of Genius Metals
showings and the extent of the Sakami property.
Winter Exploration Program Campaign
Following the successful summer -fall 2020 campaign, during which the initial phase of work led to
the discovery of the Lamarche (up to 13 g/t au) and Golden Eye (up to 2.55 g/t Au) showings, the
second phase of work confirmed the importance of the showings with up to 1.02 g/t Au over 4.1m
obtained in channel sampling, and led to the discovery of the Trans -Taïga showing (up to 2.63 g/t
Au). T he Corporation intends to continue the development of the Sakami project with a winter
campaign.
The program is set to begin in December with line-cutting followed by the completion in January of
a 42 km IP geophysical survey on a 3.2 x 1.3 km grid located on the Lamarche prospect. The survey
is expect ed to outline additional gold-bearing zones and to assist in defining drill targets . The
exploration work will culminate with a 2500 m exploratory drilling program targeting the Lamarche
and GoldenEye prospects during the months of February and March.
Currently, the Lamarche prospect is interpreted as a shear zone/deformation corridor. The altered
polymetallic shear contains veins and/or disseminated pyrite, pyrrhotite, chalcopyrite, sphalerite, and
galena within fine-grained chlorite-biotite metasediments (Figure 1). It is postulated that the Lamarche
prospect deformation zone extends at least 1.4 km ENE. The first phase of the exploration program
conducted in September 2020 yielded a grab sample value of 13 g/t Au with other samples ranging
from 0.8 to 1.8 g/t Au. The October campaign generated Au values of 1.55 to 6.10 g/t from the main
trenching areas. The Lamarche prospect is distinctive by its high silver and zinc concentrations.
Thirteen samples contained concentrations of Ag > 10 g/t (11-712 g/t ), whereas forty samples
provided assays > 1,000 ppm Zn (1070 ppm to 8.42 %).
The Golden Eye prospect (700 x 100 m) is exposed near a tonalitic pluton (Figure 1). Channel sampling
yielded values of:
• 1.02 g/t Au over 4.10 m
• 0.67 g/t Au over 2.00 m (Including 1.02 g/t Au over 1m.)
• 0.52 g/t Au over 3.00 m. (including 1.10 g/t over 1m.)
The mineralization consists of rusty bands rich in pyrite and/or pyrrhotite ± chalcopyrite within
basaltic/amphibolitic flows intruded by felsic intrusive rocks.
Private Placement
The Corporation is pleased to announce its intention to complete a non -brokered private placement
offering (the “Offering”) for aggregate gross proceeds of up to $2.55M in the following combination:
(i) up to 3,000,000 units of the Corporation (the “Units”) at a price of $0.20 per Common Share Unit,
with each such unit being comprised of one common share (a “ Common Share”) and one common
share purchase warrant entitling the holder thereof to purchase one Common Share at an exercise
price of $0.35 for a period of eighteen months; (ii) up to 2,500,000 of Quebec Flow-through Units of
the Corporation (the “Quebec FT Shares”), at a price of $0.30 per Quebec FT Share, with each such
unit being comprised of one “flow-through” Common Share and one-half of one common share purchase
warrant entitling the holder of one whole warrant to purchase one Common Share at an exercise price
of $0.35 for a period of eighteen months and (iii) 3,636,363 Charity flow-through units (the “Charity
FT Units”) at a price of $0.33 per Charity FT Unit with each such unit being comprised of one common
share and one common share purchase warrant entitling the holder thereof to purchase one Common
Share at an exercise price of $0.35 for a period of eighteen months.
The Corporation will renounce to the purchasers of the FT Shares, effective no later than December
31, 2020, an amount of "Canadian exploration expenses" ("CEE") as defined in subsection 66.1(6) of the
Income Tax Act (Canada) equal to the gross proceeds raised from the sale of FT Shares. The Corporation
agrees and covenants that 100% of such renounced CEE shall also qualify as "flow -through mining
expenditures" as defined in subsection 127(9) of the Income Tax Act (Canada). The Corporation agrees
and covenants that it will incur the full CEE in the Province of Québec, and which expenditures will
qualify for the corresponding income tax credits and deductions under the laws of the Province of
Québec in respect of eligible exploration expenses incurred in the Province of Québec.
The Corporation will use the proceeds of the offering of Flow -through Units to incur qualifying
expenditures on its Sakami property and the proceeds of the offering of Common Share Units for
exploration on its mining properties and for general working capital purposes.
The Corporation has not engaged an agent to assist in completing the O ffering. However, the
Corporation may pay finder’s fees in connection with certain subscriptions.
Any securities issued pursuant to the Offering will be subject to a hold period under applicable
securities laws, which will expire four months plus one day from the date of closing of the Offering.
Closing of the Offering is subject to a number of conditions, including receipt of all necessary corporate
and regulatory approvals, including approval of the Canadian Securities Exchange.
The technical and scientific content of this release has been reviewed and approved by Michel Boily,
PhD, P.Geo, VP Exploration for Genius and Qualified Person (QP) as defined by NI 43-101.
About Genius Metals
Genius Metals is a Canadian mineral exploration company focused on the acquisition, exploration and,
if warranted, development of natural resource properties of merit in Canada.
The CSE has in no way passed upon the merits of the transactions and has neither approved nor
disapproved the contents of this news re lease. Neither the CSE nor its Regulation Services Provider
accepts responsibility for the adequacy or accuracy of this news release.
Forward-Looking Statements and Disclaimer
Certain information contained herein may constitute “forward -looking information” under Canadian
securities legislation. Generally, forward-looking information can be identified by the use of forward-
looking terminology such as, “will be”, “expected” or va riations of such words and phrases or
statements that certain actions, events or results “will” occur. Forward-looking statements, including
the expectations of the Corporation’s management regarding the use of proceeds of the Private
Placement, are based on the Corporation’s estimates and are subject to known and unknown risks,
uncertainties and other factors that may cause the actual results, level of activity, performance or
achievements of the Corporation to be materially different from those expressed or implied by such
forward-looking statements or forward -looking information. There can be no assurance that such
statements will prove to be accurate, as actual results and future events could differ materially from
those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-
looking statements and forward -looking information. The Corporation will not update any forward -
looking statements or forward-looking information that are incorporated by reference herein, except
as required by applicable securities laws.
Contact Information
Genius Metals Inc.
Pierre-Olivier Goulet
Vice-President Corporate Development
1-450-821-5270
Email: [email protected]
Guy Goulet
President and CEO
1-514-294-7000
Email: [email protected]
Tel.: 579-476-7000