Majestic Files Technical Report ON FAIR Adelaide East Project IN Western Australia
MAJESTIC FILES TECHNICAL REPORT ON FAIR ADELAIDE
EAST PROJECT IN WESTERN AUSTRALIA
Vancouver, British Columbia – February 24, 20 20 - Majestic Gold Corp. (“Majestic” or the
“Company”) (TSX.V: MJS, FSE: A0BK1D) is pleased to announce that further to its December 18, 2019
news release the Company has filed a National Instrument 43-101 technical report on the Fair Adelaide East
Project in Western Australia.
The SRK Consulting technical report summarizes the geological environment and historical work on the
1,322 hectare property that is comprised of eight contiguous tenements owned by Plutus Resources Pty. Ltd.
(“Plutus”), located approximately 60 kilometres northwest of Kalgoorlie in the Ora Banda region of Western
Australia. The property is situated within the Norseman -Wiluna greenstone belt of the Eastern Goldfields
Province. The greenstone rocks that host gold mineralisation at Fair Adelaide East play host regionally to
the Siberia gold deposit, which is six kilometers to the northwest, and the Mt. Pleasant and Paddington gold
deposits, which are about 20-25 kilometers to the southeast of the project area.
The geology of the project area covers predominantly mafic – ultramafic rock types which in part are covered
by alluvial soils of varying depths and these areas along with a number of other prospective targets remain
untested. The project area is also prospective for base metals and is located adjacent and on strike to the
Cawse Lateritic Nickel Project, which is five kilometers east of the Fair Adelaide East property.
Work by past explorers includes sampling of small pits within the granite, numerous porphyry dykes and
quartz veins in the shea red ultramafics that returned results meriting follow-up of RAB and r everse
circulation drilling of short holes that have yielded the following intercepts within the project area:
- 17 metres @ 1.1 g/t gold from 17 metres
- 5 metres @ 1.1 g/t gold from 22 metres
- 12m @ 1.28 g/t gold from 22 metres
- 17m @ 0.61 g/t gold from 15 metres
- 22m @ 0.27g/t gold from 8 metres
-
A total of 13 verification samples were taken by SRK for this technical report including six rock chip samples
from old prospecting pits, six grab samples from residual material at the collars of RAB/RC drill holes and
one soil grab sample to verify gold mineralization. Nine of the twelve samples were taken in the area around
a zone discovered in the southwest region of the property. Previous work outlined gold mineralization in a
400 meter long zone trending northwesterly. Results are presented below. All samples were sent to Intertek
Australia’s laboratory in Kalgoorlie for gold assaying using fire assay.
306 - 1688 152nd Street
Surrey, British Columbia
Canada, V4A 4N2
Telephone: 604-560-9060
Facsimile: 604-560-9062
Email: [email protected]
SRK Verification Samples
Sample
Number Area Au (g/t) East North Sample
Type
1-1 Zone 1 0.469 307784 6647225 RAB
1-2 Zone 1 0.867 307784 6647225 RAB
1-3 Central 0.034 308600 6647038 RAB
2-1 Zone 1 0.02 307728 6646663 RC
2-2 Zone 1 0.013 307787 6646662 RC
2-3 Zone 2 0.025 309292 6645830 RC
3-1 Zone 1 6.096 307604 6646829 Rock chip
3-2 Zone 1 6.135 307598 6646842 Rock chip
3-3 Zone 1 0.825 307559 6646782 Rock chip
3-4 Zone 1 0.419 307583 6646772 Rock chip
3-4-2 Zone 1 2.581 307583 6646772 Rock chip
3-5 Zone 1 0.956 307547 6646777 Rock chip
4-1 Zone 2 0.018 309438 6646506 Soil
Majestic will continue to research and review data from previous exploration given that some of the historical
work like drill data from the limited drilling done on the property was not available to SRK at the time of
the report. Majestic will work with Plutus to complete the evaluation of all historical data in order to
formulate an exploration plan for the Fair Adelaide East Project.
The Company entered into a letter agreement (the “Agreement”) with Plutus, a privately-owned Australian
company, whereby Majestic has been granted an option to acquire a 51% interest in eight tenements, or any
number of them, located in Western Australia. Majestic may acquire a 51% interest in the full eight
tenements by paying Plutus AU$30,000 on execution of the Agreement, a further A U$30,000 on or before
December 2020 and expending a total A U$2,000,000 in exploration expenses on the properties during the
ensuing two years ending December 15, 2023, provided that Majestic expends a minimum of A U$500,000
on the properties during the year commencing December 15, 2021 and ending December 15, 2022.
Alternatively, Majestic may elect to acquire a 51% interest in fewer than the full eight tenements by making
the two cash payments of AU$30,000 and electing to expend a minimum of AU$250,000 on any one or any
number of tenements each and relinquishing the balance of the tenements back to Plutus, again provided
Majestic expends a minimum of AU$500,000 during the year commencing December 15, 2021 and ending
December 15, 2022.
Following Majestic having earned a 51% interest either in the full eight Tenements or any fewer number ,
Plutus and Majestic shall either negotiate a joint venture for the further development of the then jointly-
owned properties or negotiate a sale of a 44% interest in the said properties by Plutus to Majestic.
Stephen Kenwood, P. Geo., a Director of Majestic, is the Qualified Person within the context of National
Instrument 43-101 and has read and approved this news release.
About Majestic Gold
Currently focused mainly in China, Majestic Gold Corp. is a British Columbia based company engaged in
commercial gold production at the Songjiagou Gold Mine in eastern Shandong Province, China. Additional
information on the Company and its projects is available at www.sedar.com and on the Company’s website
at www.majesticgold.com.
For further information, please contact:
Stephen Kenwood, P.Geo., President and CEO
Telephone: (604) 560-9060
Email: [email protected]
Website: www.majesticgold.com
Cautionary Notes
Certain statements contained herein may constitute forward‐looking statements and are made pursuant to the
"safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995 and Canadian
securities laws. Forward‐looking statements are statements which relate to future events. Such statements include
estimates, forecasts and statements as to management's expectations with respect to, among other things, business
and financial prospects, financial multiples and accretion estimates, future trends, plans, strategies, objectives and
expectations, including with respect to production, exploration drilling, reserves and resources, exploitation
activities and events or future operations. Information inferred from the interpretation of dri lling results and
information concerning mineral resource estimates may also be deemed to be forward ‐looking statements, as it
constitutes a prediction of what might be found to be present when, and if, a project is actually developed.
In some cases, you can identify forward‐looking statements by terminology such as "may", "should", "expects",
"plans, "anticipates", believes", "estimates", "predicts", "potential", or "continue" or the negative of these terms or
other comparable terminology. These statement s are only predictions and involve known and unknown risks,
uncertainties and other factors that may cause our or our industry's actual results, level of activity, performance
or achievements to be materially different from any future results, levels of activity, performance, or achievements
expressed or implied by these forward‐looking statements.
While these forward‐looking statements, and any assumptions upon which they are based, are made in good faith
and reflect our current judgment regarding the direction of our business, actual results will almost always vary,
sometimes materially, from any estimates, predictions, projections, assumptions or other future performance
suggestions herein. Except as required by applicable law, Majestic Gold does not int end to update any forward‐
looking statements to conform these statements to actual results.