Announces Option Agreement to Acquire 100% Interest in La Esperanza Gold
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Minnova Corp. Office: +1 647 985 2785
MCI:TSXV 365 Bay Street, Suite 400
www.minnovacorp.ca Toronto, Ontario M5H 2V1
Minnova Corp.
Announces Option Agreement to Acquire 100% Interest in La Esperanza Gold
Property Located in the Historic Gold Mining Pullo District of Peru
NOT FOR DISSEMINATION INTO THE UNITED STATES
October 15, 2018, Toronto, Ontario – Minnova Corp. (TSXV: M CI, OTC Pink : AGRDF,
"Minnova” o r the “ Company”), an advanced-stage mining exploration and gold development
company, is pleased to announce it has entered into an option agreement with Inkarri
Comercializadora Perú S.A.C., a regional toll mill operator in Peru, to acquire a 100% interest in
the Media Quebrada mining concession and adjacent claim, collectively called the La Esperanza
Gold Property. The agreement is subject to TSX Venture Exchange approval.
Highlights from due diligence mapping and surface and underground chip and grab sampling
include;
Spanish era workings and production
386 m of historic underground workings on 3 levels
32.7 g/t Au in 0.15 m surface chip sample
26.4 g/t Au in 1.00 m surface chip sample
17.1 g/t Au in 1.00 m surface chip sample
4.7 g/t underground grab sample
1.9 g/t Au in 0.50 m underground chip sample
The La Esperanza Property can be access ed year-round by four wheel drive vehicle and is
located approximately 46 km northeast of the coast al town of Chala in south central Peru. It is
comprised of 2 contiguous concessions covering an area of 7 square kilometres at elevations
between 2,350 m and 3,250 m ASL.
The property hosts two distinct epithermal-style Au-Ag-Cu mineralized structures, the Poderosa
and La Esperanza structures which can be traced in surface exposures over 2.5 kilometres. The
Poderosa structure consists of a series of 1 to 3 meter wide , shear zone hosted fault -fill quartz
veins at the eastern edge of the property. La Esperanza structure is 1 to 3 m eters wide,
characterized by vuggy quartz veins and strong phyllic alteration hosted in a steeply dipping,
north-northwest striking shear zone . A plagioclase -phyric diorite dyke was observed to be
associated with La Esperanza structure, indicating that magma utilized the existing structural
zones during intrusion.
Au-mineralisation at La Esperanza was originally discovered and mined on a small scale by the
colonial Spanish over 200 years ago. The Pullo gold district hosts dozens of small scale, high
grade mining operations supplying ore to several toll mills in the area. Daily ore production in the
district is estimated at over 2,000 tonnes per day.
Consideration to earn a 100% interest in the project is payable in annual installments over a two-
year period, which from inception consists of total cash of US$ 650,000 and 500,000 common
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Minnova Corp. Office: +1 647 985 2785
MCI:TSXV 365 Bay Street, Suite 400
www.minnovacorp.ca Toronto, Ontario M5H 2V1
shares of the Company (see detail below). Upon TSX Venture Exchange approval, initial
payments of US$50,000 and 250,000 common shares are payable.
Details with respect to the consideration payable for this acquisition are as follows:
Timing Cash payments (US dollars) Common share payments
On signing $50,000 250,000
First anniversary $100,000 250,000
Second anniversary $500,000 nil
Totals $650,000 500,000
The property is drill ready and through an underlying agreement retains informal mining rights.
This will support small scale underground exploration and development work to produce mineral
feed for processing at the Inkarri toll mill, located 25 kilometers from the property, thus creating
an opportunity for near -term cash flow to offset expenditures . All exploration and underground
development work will be supervised by Minnova personnel.
Minnova with continue to work with Inkarri as a strategic alliance partner in the Pullo district and
elsewhere in Peru to acquire and consolidate other prospective exploration properties and/or
small scale mining operations.
Gorden Glenn, CEO commented “We believe the acquisition of advanced exploration projects in
an active gold mining district s compliments our existing near-term gold production portfolio
consisting of the PL Mine (positive re -start Feasibility Study November 2017) and satellite
Nokomis Deposit, both located in the prolific Flin Flon -Snow Lake greenstone belt of Central
Manitoba. Due diligence mapping and sampling at La Esperanza confirmed potential for high
grade Au mineralization in two distinct structures, over significant strike lengths. Our work
program will capitalize on the existing informal mining license and underground access to initiate
a detailed underground mapping, drilling and bulk sampling program to be batched processed at
Inkarri’s toll milling operation. Surface work will consist of mapping, drilling and trenching
programs designed to rapidly develop a NI 43-101 compliant gold resource on the property”.
Table 1: Grab and chip sample results with gold assays greater that 2.0 g/t
Sample No. Location Sample From (m) To (m) Length (m) Au gpt
388517 Outcrop Chip 0.00 0.15 0.15 32.67
388897 Outcrop Chip 1.00 2.00 1.00 26.38
388516 Outcrop Chip 0.00 1.00 1.00 17.14
388964 Underground Grab 4.707
388895 Outcrop Chip 0.50 1.00 0.50 4.57
388889 Outcrop Chip 0.50 1.00 0.50 4.49
388508 Outcrop Chip 0.00 1.00 1.00 2.52
388888 Outcrop Chip 0.00 0.50 0.50 2.15
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Minnova Corp. Office: +1 647 985 2785
MCI:TSXV 365 Bay Street, Suite 400
www.minnovacorp.ca Toronto, Ontario M5H 2V1
QA/QC
All samples were bagged in a plastic sample bags which were labeled, tagged, documented and
sealed. The samples were then placed in labelled rice sacks and sealed with a security zip -tie.
Samples were delivered to SGS Laboratories Ltd. in Lima Peru under the supervision of Minnova
personnel. Receipt of the samples was signed off at the preparation lab and was tracked by the
Company. Pulps of each sample were prepared and followed by fire assay and gravimetric
analysis, if required. A QA/QC program including the regular insertion by the Comp any of
duplicates, blanks and standards was instituted.
Chip sample lengths varied according to geology and mineralization with quartz veins regularly
sampled. The samples oriented perpendicular to the strike of the structures being sampled.
This property acquisition remains subject to approval of the TSX Venture Exchange. The
securities to be issued as consideration under this option agreement will be subject to a statutory
hold period of four months and one day from the date of issuance.
The fore going historical resource estimates presented above were completed prior to the
implementation of the National Instrument 43-101 requirements; however, given the high quality
of the historic work completed and the respective mining companies’ reputations and production
history of the previous project owners, the Company believes the historical resource estimates to
be both relevant and reliable. In addition, a Qualified Person has not completed sufficient work to
classify these historic mineral resources as current mineral resources; and the Company is not
treating the historic resources as current.
About Minnova Corp.
Minnova Corp. is an emerging Canadian gold producer focused on re-starting the PL Gold Mine
and expanding gold resources on its PL and Nokomis gold deposits. The Company has completed
a Positive Feasibility Study in support of re-starting the PL Mine at an average annual production
rate of 46,493 ounces over a minimum 5 year mine life. The resource remains open to expansion
and future surface exploration work programs will target resource expansion. The PL Gold Mine
has a relatively short pre -production tim eline forecast at 15 months, benefits from a valid
underground mining permit (Environment Act 1207E), an existing processing plant, over 7,000
meters of developed underground ramp to -135 metres depth, is fully road accessible and close
to existing mining infrastructure in the prolific Flin Flon – Snow Lake Greenstone Belt of Central
Manitoba.
Qualified Person
Mr. Chris Buchanan, M. Sc., P. Geo., a consultant of the Company and a “Qualified Person” under
National Instrument 43-101, has reviewed and approved the scientific and technical information
in this press release.
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Minnova Corp. Office: +1 647 985 2785
MCI:TSXV 365 Bay Street, Suite 400
www.minnovacorp.ca Toronto, Ontario M5H 2V1
For more information please contact:
Minnova Corp.
Gorden Glenn
President & Chief Executive Officer
For further information, please contact Investor Relations at 647-985-2785 or
Visit our website at www. minnovacorp.ca
Forward Looking Statements
This news release contains "forward -looking information" within the meaning of applicable Canadian securities legislation.
Forward-looking information includes, but is not limited to, information regarding the Company including management’s
assessment of future plans and operations, that may involve risks associated with mining exploration and development, volatility
of prices, currency fluctuations, imprecision of resource estimates, environmental and permitting risks, access to labour and
services, competition from other companies and ability to access sufficient capital. As a consequence, actual results may differ
materially from those anticipated in the forward looking statements. A feasibility study has not been completed and there is no
certainty the disclosed targets will be achieved nor that the proposed operations will be economically viable. Although Minnova
has attempted to identify important factors that could cause actual results to differ materially from those contained in forw ard-
looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be
no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those
anticipated in such information. Accordingly, readers should not place undue reliance on forward -looking information. Minnova
does not undertake to update any forward-looking information, except in accordance with applicable securities laws.
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.