Niobay Announces Option to Acquire up to 65% IN the LA Peltrie GOLD Project from Midland Exploration, Southeast of Detour Gold’S Zone 58N
Press release
TSX-V: NBY
NIOBAY ANNOUNCES OPTION TO ACQUIRE UP TO 65% IN THE LA PELTRIE GOLD PROJECT
FROM MIDLAND EXPLORATION, SOUTHEAST OF DETOUR GOLD’S ZONE 58N
Montreal, September 6, 2017 . Niobay Metals Inc. (“NioBay” or the “Company”) (TSX -V: NBY) is
pleased to announce it has entered into an option agreement with Midland Exploration Inc.
("Midland") to acquire up to a 65% interest in its La Peltrie gold property.
This project with strong gold potential is wholly owned by Midland and is located approximately 25
kilometers southeast of Zone 58N, a high -grade gold zone in the Lower Detour area held by Detour
Gold Corp. (“Detour Gold”). Best results obtained so far in drilling in Zone 58N in the Lower Detour
area include values of 11.82 g/t Au over 32.40 meters, 12.74 g/t Au over 28.0 meters (source: press
release by Detour Gold dated June 2, 2014) . Phase II drilling results includes 14.22 g/t Au over 13.0
meters and 28.14 g/t Au o ver 9.0 meters (source: Detour Gold website). (Note that assays are
reported as core lengths and that true thicknesses cannot be determined at this time with the
information currently available).
The La Peltrie pro ject is also located about 25 kilometers northwest of the former Selbaie mine,
which historically produced 56.5 million tonnes grading 1.9% Zn, 0.9% Cu, 38.0 g/t Ag and 0.6 g/t Au
and next to the B26 deposit currently held by SOQUEM. Recent drilling by SOQUEM on this deposit
returned new Zn -Ag and Cu-Au zones yielding up to 21.2% Zn, 526.6 g/t Ag, 3.8% Pb and 0.7% Cu
over 3.4 metres (drill hole 1274 -16-228) and 12.2% Cu, 1.3 g/t Au and 14.0 g/t Ag over 2.0 metres
(drill hole 1274-16-236) (source: SOQUEM website). (Niobay cautions that the minera lization at the
Selbaie Mine may not be indicative of the mineralization that may be identified on the La Peltrie
property.)
The La Peltrie pro ject consists of 511 claims totaling approximately 285 square kilomet ers and
covers, over 25 kilometers, a series of interpreted NW -SE-trending subsidiary faults to the south of
the regional Lower Detour Fault.
Under the terms of th e option agreement, NioBay can earn up to 65% of Midland's interest in the
project over a period of six (6) years, by fulfilling the following conditions:
First, to earn a 50% interest, Niobay has to:
Pay in cash or in common shares:
o $30,000 promptly after Niobay receives the approval of the TSX Venture Exchange, and
$30,000 on or before August 31, 2018;
o $50,000, $70,000 and $70,000 on or before respectively August 31, 2019, 2020 & 2021;
and
Incur e xploration expenditures totaling $3,000,000 by August 31, 2021 , including a firm
commitment of $500,000 to be invested by December 31, 2017.
Following the initial earn -in of its 50% interest, Niobay will be entitled to earn an additional 15%
interest in the project by completing a preliminary economic assessment by August 31, 2023.
Midland and NioBay intends to begin shortly a diamond drilling campaign totaling more than 1,500
meters aiming to test the best geophysical targets identified by the OreVision® IP (« OreVision »)
surveys completed in 2016 and 2017 (see Midland ’s press release dated April 19 2017). Midland will
be project operator during the initial option period.
Maps showing the location of the La Peltrie property may be consulted using the following link:
http://media3.marketwire.com/docs/La_Peltrie_Sep_2017V4.pdf
Claude Dufresne, President, and CEO commented that “NioBay is very ple ased to have the
opportunity to acquire an interest in the La Peltrie gold project . The project is located in a highly
prospective geological area with known gold mineralized trend. Excellent drilling results have been
reported recently by companies explor ing in the area. W e are looking forward to partner with
Midland’s team in advancing the exploration of the project ”. Mr. Dufresne added “The James Bay
Niobium project remains our core project and we continue to hold discussions with the local
community members, government officials and will maintain ours efforts to engage with the MCFN
leadership.”
This press release was prepared by Claude Dufresne, P. Eng. , mining engineer and Qualified Person
as defined by NI 43-101. The transaction is subject to TSX Venture Exchange acceptance.
About NioBay Metals Inc.
NioBay Metals Inc. is a mining exploration company holding a 100% interest in the James Bay
Niobium property in Ontario, Canada and a 72.5% interest in the Crevier niobium/tantalum resource
in Québec, Canada. The Company is also actively reviewing the potential of other mineral properties,
including the La Peltrie property, and properties in Quebec jointly held with SOQUEM.
Cautionary Statement
Certain statements contained in this press release constitute forward looking information under the
provisions of Canadian securities laws. Forward-looking information involve known and unknown
risks, uncertainties and other factors which may cause the Company's actual results, performance or
achievements to be materially different from those expressed or implied by forward -looking
statements. Forward looking informatio n contained in this press release includes statements with
respect to the acquisition of an interest in the La Peltrie project and the potential mineralization and
geological merits of the La Peltrie project. These statements are subject to a variety of ri sks and
uncertainties including, without limitation: risks and uncertainties relating to the interpretation of
geological data; the possibility that future exploration results will not be consistent with the
Company's expectations or with the results obtai ned by Detour Gold ; risks related to the ability to
obtain financing needed to fund the exercise of the option and the exploration and development of
the project; market conditions and volatility and global economic conditions; and several risks
related to the nature of mineral exploration and development. Such statements reflect the
Company's views as at the date of this press release . The Company does not intend and does not
assume any obligation, to update these forward -looking statements and informatio n, except as
required by law.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accept responsibility for the adequacy or accuracy of this
release.
For more information, contact:
Claude Dufresne, P.Eng.
President & CEO
NioBay Metals Inc.
Tel.: 514 866-6500, Ext. 2221
Email: [email protected]
Website: www.niobaymetals.com