Victory Metals' JV Partner Ethos Gold Commences Drilling of Carlin-type Target at Iron Point, Nevada, and Adds Fourth Hole to Test Southern Extension of Target
Victory Metals' JV Partner Ethos Gold Commences Drilling of Carlin-type
Target
at Iron Point, Nevada, and Adds Fourth Hole to Test Southern
Extension of Target
VANCOUVER
,
June 18, 2019
/CNW/ -
Victory Metals
("
TSX-V:VMX
") ("
Victory
" or the "
Company
") is pleased to announce that its joint venture partner, Ethos
Gold ("
TSX-V:ECC
") ("
Ethos
"), has commenced drilling at the Iron Point project 22 miles east of
Winnemucca, Nevada
. Ethos' primary target is
Carlin
-type gold
mineralization hosted in Lower Plate stratigraphy below the Roberts Mountain thrust fault. Some of the world's largest and highest grade gold deposits are found
in this Lower Plate stratigraphy. The Lower Plate drill target at Iron Point is immediately west of a north-south striking range front fault at between
500m
and
800m
depth (see Figures 1 – 5 below).
Highlights:
The Ethos gold-focused drilling at Iron Point is now underway, supervised by Dr. Quinton Henningh. This drilling is in addition to the ongoing vanadium shallow
drill program (up to approximately
200m
depth) being conducted by Victory as was announced on
May 27, 2019
(
click here
). Between both the vanadium and
gold programs there are now three RC rigs and one core rig turning at Iron Point.
Iron Point is located at the intersection of the Cortez/Battle Mountain Gold Trend and the Getchell Gold Trend, and on trend from several high-grade, world-
class gold mines including Twin Creeks, Getchell/Turquoise Ridge,
Lone Tree-Stonehouse
, and Marigold.
The Ethos drill program will comprise approximately
3,200m
of drilling (see collar locations in Figure 1). This includes a fourth vertical hole that has been
added to the previously announced three-hole program which will test the extension of the gold target area south of Interstate 80. Three of these holes will be
drilled with a reverse circulation ("RC") rig to depths of approximately
300m
, then continued with a core rig to total depths of approximately
850m
(Holes 1, 2
and 4 in Figure 2). A fourth hole will be drilled as a core hole from surface to approximately
600m
(Hole 3 in Figure 2).
Ethos can earn a 50% undivided interest in the gold rights at Iron Point from Victory by spending
C$5.0 million
over three years, including a minimum
expenditure of
C$1.0 million
in the first year.
Previous drilling at Iron Point by Dr.
Quinton Hennigh
in the 1990s intersected anomalous
Carlin
-type gold mineralization across Upper and Lower Plate
stratigraphy near an interpreted recumbent fold hinge as well as along a range front fault. Significant anomalous gold has been sampled in surface trenches
and is interpreted to be leakage from deeper levels in the system. Further, some of the strongest
Carlin
-type gold pathfinder element geochemistry in
Nevada
is present at Iron Point.
Based on this work, a 5 km long, 1 km wide north-south trending Carlin-style gold target has been identified by Dr. Hennigh at Iron Point. The current drill
program will test for Lower Plate-hosted gold mineralization beneath Upper Plate Vinini Formation sedimentary rocks that host Victory' vanadium
mineralization.
Collin Kettell
, CEO of Victory, stated: "Iron Point was initially acquired by Casino Gold for its gold potential with the project representing one of the most
historically active gold exploration targets in
Northern Nevada
. Coincidentally, dialogue with Dr. Henningh in middle of 2018 regarding deeper gold targets led to
the recognition of the presence of shallow vanadium mineralization at Iron Point and the formation of Victory Metals as a North American vanadium company. We
are ecstatic to have the opportunity to work with Dr. Henningh and test for deeper gold targets at Iron Point, while keeping Victory's focus squarely on vanadium."
Stated
Craig Roberts
, P.Eng., President & CEO of Ethos: "Our deal with Victory Metals was announced
May 17
and we are very pleased to have advanced to
the point of having drills turning by June 17. While there is considerable historic exploration work at Iron Point including multiple drill programs resulting in the
definition of strong indicator element and gold geochemistry over 5 km north-south along the range front fault, to date Iron Point has not received any significant
drilling to deeper levels into Lower Plate stratigraphy to test for
Carlin
-type gold mineralization. This drill campaign will be the first to systematically test for a
deeper
Carlin
-type target in the Lower Plate at Iron Point. Fortunately we are able to benefit from this substantial previous nearer-surface work in locating and
orienting our planned deeper drilling. Carlin-type targets have potential for significant size and we are excited to have now initiated this drill campaign."
Stated Dr.
Quinton Hennigh
: "We have a robust drill plan prepared for testing the 5 km long gold target at Iron Point. The first two vertical holes will test the
central part of the target area by cutting through highly geochemically anomalous Upper Plate rocks in search of Carlin-style gold mineralization in Lower Plate
rocks beneath. Our third hole tests for similar mineralization in the northern part of the target area where an erosional window has cut down into the recumbent
Zed-fold exposing targeted Lower Plate rocks. Our newly added fourth hole, vertical, is positioned in the southern part of the target area and will drill through
basalt, gravel and Upper Plate rocks to test the underlying prospective Lower Plate stratigraphy. I am very happy to have this opportunity to test what is perhaps
one of the best remaining Carlin-style gold targets left in
Nevada
."
Extension of Target Area to the South of Interstate 80
Previous mapping, sampling, and drilling along the extension of the range front fault south of Interstate 80 has identified a significant gold and pathfinder element
anomalism. There has been no deep drilling in this area to date. The target model here is similar to, and a continuation of, the target model north of the highway.
Ethos has decided to test this target with a vertical hole (Hole 4) to a planned depth of
850m
(see location on Figure 2), targeting Lower Plate stratigraphy
beneath Upper Plate rocks. Since this area has already been permitted and bonded by Victory in preparation for drill testing the extent of vanadium mineralization
in this area, drilling of the deeper gold target can commence immediately.
Overview of the Iron Point Target
Iron Point is located at the intersection of the prolific Getchell and Cortez/Battle Mountain Trends:
Figure 1: Iron Point Project Location (CNW Group/Victory Metals Inc)
At Iron Point, Upper Plate Ordovician Vinini Formation overlies interpreted Lower Plate Silurian-Devonian Roberts Mountain and Popovich Formations, separated
by the Roberts Mountain thrust fault dipping shallowly to the west (see Figures 2, 3 and 4 below). North-south striking normal faulting subsequent to the Roberts
Mountain thrust activity has down-dropped stratigraphy to the east forming a range front fault, infilled by alluvium and gravels to the east. Some of the strongest
Carlin
-type gold pathfinder element geochemistry in
Nevada
is present at Iron Point in footwall rocks immediately west of the range front fault over an
approximately 5 km strike distance (see Figure 5 below). Anomalous gold mineralization in geochemical sampling and trenching coincident with this pathfinder
geochemistry is also present along this 5 km trend. Historic drilling at Iron Point has encountered multiple intervals of significantly anomalous gold mineralization in
Upper Plate rocks and into Lower Plate stratigraphy also immediately west of the range front fault. This includes an interval of
Carlin
-type gold mineralization
along the range front fault interpreted to be smeared fault gouge transported from deeper levels.
Drilling that penetrated the upper levels of the Lower Plate rocks encountered an interpreted recumbent Zed-fold parallel to and immediately west of the range
front fault. This recumbent Zed-fold is also partially exposed in an erosional window near the north end of the target area. A similar geologic model including
recumbent Zed-folding along a range front fault is the focus of extensive gold-mineralization at Newmont's Twin Creeks mine located approximately 25 miles north
of Iron Point. The primary target for
Carlin
-type mineralization at Iron Point is in this Zed-folding of Lower Plate rocks along the range front fault (see Figures 3
and 4 below).
Figure 2: Geologic map in plan, including the location of the four planned holes, as well as the east-west cross section lines A-A’ and B-B’ (see figures 3 & 4)
(CNW Group/Victory Metals Inc)
Figure 3: Cross section A-A’, conceptual east-west cross section (looking north) through hole 2 (CNW Group/Victory Metals Inc)
Figure 4: Cross section B-B’, conceptual east-west cross section (looking north) through hole 3 (CNW Group/Victory Metals Inc)
Figure 5: Surface geochemistry along range front fault, with location of four proposed drill holes (CNW Group/Victory Metals Inc)
Earn In and Joint Venture Terms
Ethos can earn a 50% interest in the gold and silver rights at Iron Point by spending a minimum of
C$5.0 million
over three years, with minimum expenditures of
C$1.0 million
in the first year. Following the earn-in a 50-50 joint venture will be formed between Ethos and Victory. Victory will maintain 100% title to the Iron
Point claims and on completion of its earn-in Ethos would have a contractual right to 50% of any gold or silver discovery. The vanadium mineralization is near
surface with significant spatial separation from the conceptual deeper gold target and is 100% owned by Victory. Furthermore, Victory maintains the right to
ensure that any gold exploration and development plans do not interfere with development of its vanadium project.
Stock Option Grant
The Company further announces an aggregate grant of 560,000 stock options to certain directors, officers and consultants of the Company exercisable at
$0.63
expiring five years from the date of grant, subject to regulatory approval.
About Victory Metals
Victory owns a 100% interest in the Iron Point Vanadium Project, located 22 miles east of
Winnemucca, Nevada
. The project is located within a few miles of
Interstate 80, has high voltage electric power lines running through the project area and a railroad line passing across the northern property boundary. The
Company is well financed to advance the project through resource estimation and initial feasibility study work. Victory has a proven capital markets and mining
team led by Executive Chairman
Paul Matysek
. Major shareholders include Casino Gold (46%), and management, directors and founders (27%). Approximately
48% of the Company's issued and outstanding shares are subject to an escrow release over three years.
Qualified Person
The scientific and technical information in this news release has been review and approved by
Calvin R. Herron
, P.Geo., who is a Qualified Person as defined by
National Instrument 43-101.
Please see the Company's website at
www.victorymetals.ca
.
On Behalf of the Board of Directors of
VICTORY METALS INC.
Paul Matysek
Executive Chairman and Director
Neither the 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.
Forward-Looking Information
This news release contains certain forward-looking information and forward-looking statements within the meaning of applicable securities legislation
(collectively "forward-looking statements"). Certain information contained herein constitutes "forward-looking information" under Canadian securities legislation.
Generally, forward-looking information can be identified by the use of forward-looking terminology such as "expects", "believes", "aims to", "plans to" or
"intends to" or variations of such words and phrases or statements that certain actions, events or results "will" occur. Forward-looking statements are based on
the opinions and estimates of management as of the date such statements are made and they 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 Company to be materially different from those expressed by
such forward-looking statements or forward-looking information, including the business of the Company, the
speculative nature of mineral exploration and
development, fluctuating commodity prices, competitive risks, and
delay, inability to complete a financing or failure to receive regulatory approvals. Although
management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-
looking statements or forward-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 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 Company does not
undertake to update any forward-looking statements or forward-looking information that are incorporated by reference herein, except as required by applicable
securities laws.
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For further information:
contact Collin Kettell at [email protected] or (301) 744-8744.
CO: Victory Metals Inc
CNW 09:00e 18-JUN-19