Mammoth Provides Update on Exploration Activities at Its Tenoriba Gold Property, Announces Partner Centerra Gold Ceasing Exploration Activities in Mexico
Mammoth Provides Update on Exploration
Activities at Its Tenoriba Gold Property,
Announces Partner Centerra Gold Ceasing
Exploration Activities in Mexico
Toronto, Ontario--(Newsfile Corp. - September 22, 2020) -
Mammoth Resources Corp. (TSXV:
MTH), (the "Company", or "Mammoth")
announces that it has received notification from Minera
Centerra S.A. de C.V., the subsidiary company of Centerra Gold Inc. (collectively "Centerra"), with which
Mammoth signed an option agreement to explore Mammoth's 100% owned Tenoriba gold-silver
exploration project located in southwestern Chihuahua State, Mexico, that Centerra has made the
decision to cease exploration activities in Mexico, including at Tenoriba. In a conference call wherein
Mammoth was informed of Centerra's decision to cease exploration activities, Centerra expressed their
enthusiasm for drilling the Tenoriba project. Furthermore, in the notice letter to Mammoth advising of this
decision Centerra noted that the decision to cease exploration was "no reflection upon any of the
exploration properties it was involved in, including the Tenoriba property". In mid-August Centerra filed
an application for permission to drill up to 139 drill locations at Tenoriba and a response/approval of this
permit application is expected within weeks. Under the terms of the Agreement between Mammoth and
Centerra there will be a 60-day period from notice to termination of the Agreement.
Thomas Atkins, President and CEO of Mammoth, commented on Centerra ceasing exploration
activities in Mexico, stating:
"Mammoth receiving notice that Centerra was ceasing its activities at
Tenoriba came as quite a surprise, especially so close to when we believed they would receive
approval of their drill permit application and after making numerous preparations to begin drilling,
including having had two drill contractors prepare to bid on the program. Mammoth has reviewed
more than 30 exploration properties over the past six months looking for an opportunity to option a
property where it could advance its own exploration efforts. Now, in addition to Mammoth continuing
this search, Tenoriba is returning to the Company as a large, previously drilled gold-silver exploration
property that has undergone the scrutiny of a senior company review leading to preparations for the
commencement of a significant drill program."
Tenoriba Exploration Highlights:
Flagship gold-silver advanced stage exploration project in the prolific Sierra Madre precious metal
producing region.
Large 15 square km - 5 km x 3 km footprint of ubiquitous gold-silver mineralization in what has all
the characteristics of a High Sulphidation - Porphyry precious metal system, remains open along
strike.
Highest gold and silver values sampled graded 74 grams/tonne (g/t) gold and 62 g/t silver.
Various targets over 4 km of the mineralized trend tested by 26 diamond drill holes of which 18 drill
holes host tens of metres (m) of potentially economical gold-silver mineralization; drill intersections
assayed grading up to 45.9 g/t gold over 1.9 m with lower grades over longer intersection widths,
including 2.3 g/t gold over 43.0 m and up to 0.5 g/t gold over 126.8 m.
Mineralization appears amenable to low-cost open pit mining and heap leaching processing.
Drill ready with permit for up to 139 drill holes covering a 2.25 km x 1.25 km area submitted for
approval.
Centerra, during its 21 months optioning the project has spent almost C$1.2 million at Tenoriba,
with total prior direct project exploration spending at Tenoriba exceeding C$4 million.
Recent Activities at Tenoriba:
Over the past six months in preparation for drilling, activities at Tenoriba included:
Extensive surface lithological and structural mapping and sampling (137 samples collected and
analysed by Centerra in addition to the more than 650 samples collected and analyzed by
Mammoth) and drill core mapping and sampling (including Terraspec alteration clay analysis) by
Centerra geologists.
Reinterpretation of the geophysical data from the Mammoth 2015 IP-Mag geophysics survey.
Drill hole targeting, including the creation of numerous cross sections consolidating surface, drill
core and geophysical information.
Submitted an application for a drill permit for up to 139 drill locations covering a 2.25 km x 1.25 km
area of the property.
Two drill contractors were preparing bids on the Centerra drill program.
Steps Forward for Mammoth:
Numerous options are currently under consideration in order to advance Tenoriba following Centerra's
notice and taking into account the project's advanced stage of drill program readiness, these activities
include:
Review with Centerra geologists their drill targeting assessment, including review of its
reinterpretation of the geophysical data, structural and lithological mapping, surface and drill hole
sample results and the sections produced from this work.
Consult with the two communities (ejidos) that oversee and had granted surface access at
Tenoriba regarding continuation of surface access.
Potentially commission an independent third party with in-depth experience of High Sulphidation-
Porphyry mineralogical systems similar to Tenoriba to review the geological data set and make
recommendations for the next phase of exploration.
Explore optioning Tenoriba to another well capitalized mining/mineral exploration company.
Reach out to individual investors, resource investment funds and royalty companies to source the
capital to enable Mammoth to advance its initial assessment of drill targets at Tenoriba, including
those identified by Centerra, following up on potentially economic intersections from prior drilling at
Tenoriba and/or targets recommended by the aforementioned experienced third party technical
review and based on these targets determine the feasibility and source the funds required to
advance drilling.
Merge Mammoth with another junior exploration company whereby the combination of companies
creates enhanced exposure and attractiveness to raise the funds required to advance exploration
at Tenoriba.
On the opportunities for Mammoth and Tenoriba, Thomas Atkins, President and CEO of
Mammoth, stated:
"I'd be surprised if there are many exploration companies with a small $2 million
market value which hold a 100 percent interest in a 5,000 hectare gold-silver exploration property
where mineralization is sampled ubiquitously over a large 15 square kilometre area, has undergone
two prior successful drill programs and a senior company review leading to the intention to drill over
100 drill targets, and is imminently drill ready. The more Mammoth explored Tenoriba the more
excited we became of its potential and this potential attracted a large cap company which was
prepared to spend up to C$13 million to earn a 70 percent interest. Mammoth is excited to again have
100 percent of Tenoriba and the numerous opportunities to advance the project's future
development."
Mammoth intends to provide updates as it makes progress advancing various activities to move the
Tenoriba project forward.
About Mammoth Resources:
Mammoth Resources (TSXV: MTH) is a precious metal mineral exploration Company focused on
acquiring and defining precious metal resources in Mexico and other attractive mining friendly
jurisdictions in the Americas. The Company holds a 100% interest (subject to a 2% net smelter royalty
purchasable anytime within two years from commencement of commercial production for US$1.5 million)
in the 5,333 hectare Tenoriba gold property located in the Sierra Madre Precious Metal Belt in
southwestern Chihuahua State, Mexico. Mammoth is seeking other opportunities to option exploration
projects in the Americas on properties it deems to host above average potential for economic
concentrations of precious metals mineralization.
To find out more about Mammoth Resources and to sign up to receive future press releases, please visit
the company's
website
at:
www.mammothresources.ca
., or
contact
Thomas Atkins, President and
CEO at:416 509-4326.
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release.
Forward Looking Information: This news release may contain or refer to forward-looking information. All
information other than statements of historical fact that address activities, events or developments that
the Company believes, expects or anticipates will or may occur in the future are forward-looking
statements; examples include the listing of its shares on a stock exchange and establishing mineral
resources. These forward-looking statements are subject to a variety of risks and uncertainties beyond
the Company's ability to control or predict that may cause actual events or results to differ materially from
those discussed in such forward-looking statements. Any forward-looking statement speaks only as of
the date on which it is made and, except as may be required by applicable securities laws, the Company
disclaims any intent or obligation to update any forward-looking statement, whether as a result of new
information, future events or results or otherwise. Although the Company believes that the assumptions
inherent in the forward-looking statements are reasonable, forward-looking statements are not
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forward-looking statements due to the inherent uncertainty therein.
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