Plato Gold Announces the Signing of Option Agreements with Rudy Wahl for the Good Hope Niobium Project
For Immediate Release
Plato Gold Announces the Signing of
Option Agreements with Rudy Wahl for the
Good Hope Niobium Project
Toronto, May 31, 2017 – Plato Gold Corp. (TSX-V: PGC ) (“ Plato ” or the “Company”), an
exploration company with a portfolio of properties i n Northern Ontario and Santa Cruz,
Argentina is pleased to announce the signing of two Optio n Agreements, KL226 Option
Agreement (“KL226”) and KL37 Option Agreement (“KL37”) to a cquire 100% interest in the
Good Hope Niobium Project in Killala Lake area, near Marathon Ontario. The acquisition is
subject to approval by the TSX Venture Exchange.
“I am very pleased to have Plato and its shareholders i nvolved in the Good Hope Niobium
Project. Niobium is classified as a “strategic meta l” by the U.S. government and is a metal
whose various uses should continue to grow,” said Anthony Cohen, President and CEO. “I am
particularly pleased with the exploration team that Plato has put together to work on this project.
Plato looks forward to exploring and developing the Niob ium discovery by award winning
prospector Rudy Wahl. The niobium discovery is located n ear the mining centre of Marathon,
Ontario with all of its excellent mining infrastructure.”
About the Good Hope Niobium Project
The Good Hope Niobium Property consists of a total of 19 claims, 263 claim units and 4208
hectares in Killala Lake Area and Cairngorm Lake Area T ownships, northwest of Marathon,
Ontario. The Good Hope Property is located approximately 45 kilometers northwest of Marathon
and 28 km north of Highway 17. The property is readily accessible from Trans-Canada Highway
17 and Dead Horse Road. The Property is also in close pr oximity to the Hemlo gold mining
camp.
The regional geology around the Good Hope Property cons ists of alkaline and carbonatite
intrusions formed during Midcontinental rifting within the T rans-Superior Tectonic zone. The
Good Hope Property forms a doughnut around the Prairie Lake C omplex. The Prairie Lake
Complex is composed of carbonatite, ijolite and potass ic nepheline syenite. The most common
rock types on the Good Hope Property are carbonatite, syenite breccia and ijolite. The Good
Hope Property hosts Niobium mineralization in pyrochl ore. The Niobium mineralization differs
from that in Prairie Lake Complex in that it is low in Th and U contents.
The discovery of Niobium mineralization at Good Hope w as made by Rudy Wahl in 2010 when
he identified 1.63 % Nb 2O5 in a small outcrop on site #28. In 2014, he followed up with mapping
and prospecting in 5 pits that he dug in the area. Subsequen t exploration work on the property
includes: grab sampling, channel sampling, trenching, ground radiome trics survey, airborne
magnetic - radiometrics surveys and mineralogical studi es. Mineralogical studies completed in
2014 by Professor Roger H. Mitchell on samples from site #28 shows that the pyrochlore
minerals are ThO 2-free and contain very low UO3 so radionuclide problem s are low for future
extraction.
During the summer of 2015, a detailed prospecting-geological sur vey was completed on the
Good Hope Property with the objective of finding larger z ones of mineralized, non-radioactive
carbonatite. The first trench, TR-01, revealed a non-r adioactive carbonatite at the contact with a
syenite. The carbonatite is at least 5 meters wide by 15 meters long, and observations indicate
that it extends underneath the swamp for an unknown d istance. The best result from 26 channel
samples in trench TR-01 is 1.205% Nb 2O5 over 1.10 meters. Trench TR-04 revealed a contact
between ijolite breccia and syenite breccia, both mat rix being carbonatite, with a chunk of
massive carbonatite. Again, the carbonatite most likely extends underneath the swamp. The best
channel sampling result for TR-04 is 0.437% Nb 2O5 over 0.60 meters. In summary, the 2015
exploration program was successful in discovering a new t ype of niobium mineralization which
is potentially a non-radioactive carbonatite intrus ion. As the discovery coincides with a low
magnetic/low topography sector, all the multi square-ki lometers low topography, low magnetics
area covered by the Good Hope Property, is considered highly prospective.
Two drill holes were completed in 2016 for a total of 280.7 m on an airborne radiometric
anomaly near the discovery site #28. The assay highlight s for drill hole PL-01 include 0.45 %
Nb 2O5 over 1.0 m and 6.25 % P 2O5 over 1.0 m. The assay highlights for drill hole PL-02 include
0.34 % Nb 2O5 over 1.0 m and 5.81 % P 2O5 over 1.0 m. The Niobium mineralization in drill core
is associated with carbonatite and syenite carbonatite breccia.
June Exploration Program
A data compilation on the Property was completed to use for exploration targeting and program
planning. A geological mapping and sampling program is planned for June 2017. The goal of the
program is to identify additional Niobium mineralizatio n on the Property. Geophysics surveys
suggest that the Prairie Lake Complex has a non-magnet ic ring dyke and radial fracture system
around it on Plato’s Good Hope Property. The geological mapping will search for Niobium
mineralization within the ring dyke.
Another goal of the June geological mapping program will be to collect more geological data for
drill targeting for the proposed August drill program.
About Dr. Julie Selway
Julie Selway, Ph.D., P.Geo. is the Principal Geolog ist for J-J Minerals, a mineral exploration
consulting firm based in Sudbury, Ontario. Dr. Selway has over 25 years of work experience for
academia, government and industry. Dr. Selway’s specialtie s are writing NI 43-101 reports,
QA/QC reviews of drill core assays, data compilations and project management. She is the co-
author of twenty-six NI 43-101 Independent Technical Reports , twenty-three scientific journal
articles and thirteen Ontario Geological Survey public ations. She has worked on a wide variety
of deposit types including: carbonatites, lithium pegmati tes, Cu-Ni-PGE deposits, gold,
stratiform Cu, VMS, porphyry Cu and banded iron formation. Dr. Selway is a Qualified Person
("QP") as defined by National Instrument 43-101.
About Rudy Wahl
Rudy Wahl has been prospecting in the Marathon – Hemlo – Terrace Bay area since 1989 and
has optioned more than 30 properties to different mining c ompanies. Between 2005 and 2014,
Mr. Wahl found 17 new rare earth and 2 new Uranium occurren ces within the Prairie Lake –
Killala Lake Area. He made the Niobium discovery of up to 1.63 % Nb 2O5 and up to 20.6 %
P2O5 on the Good Hope Property in 2014. In recognition of this Ni obium discovery, he received
the Bernie Schnieders Discovery of the Year Award for 2014 from the Northwestern Ontario
Prospectors’ Association (NWOPA). He has also made n umerous gold and diamond discoveries
and in 2012 was presented with the Lifetime Achievement Awa rd for Outstanding Work as a
Prospector in Northwestern Ontario from the NWOPA. Mr. Wahl will be presented with an
Honorary Doctorate in Science from Lakehead University in June 2017.
Details of the two option agreements are as follows :
KL226 Option Agreement
The Optionors are Rudolf Wahl (45%), Mike Dorval (45%), Roge r H. Mitchell (10%). Plato, as
the Optionee, will earn in for 100% interest in the KL226 claims upon completion of the
following:
i) Total cash payment of $106,600 as follows:
i. $10,000 to Optionors within 7 days of signing of both the KL226
Option Agreement and KL37 Option Agreement
ii. $1,600 to Rudolf Wahl for costs of staking within 7 days of signi ng of
both the KL226 Option Agreement and KL37 Option Agreement
iii. $15,000 to Optionors within 60 days of TSXV approval of both th e
KL226 Option Agreement and KL37 Option Agreement
iv. $20,000 to Optionors on or before the 1 st , 2 nd , 3 rd and 4 th anniversary
of the TSXV approval of both the KL226 Option Agreement and
KL37 Option Agreement
ii) Total payment of 7,500,000 common shares
i. 3,500,000 common shares to Optionors within 15 days of TSXV
approval of both the KL226 Option Agreement and KL37 Opti on
Agreement
ii. 1,000,000 common shares to Optionors on or before the 1 st , 2 nd , 3 rd and
4th anniversary of the TSXV approval of both the KL226 Option
Agreement and KL37 Option Agreement
iii) Combined exploration expenditures of $400,000 on either or both the KL226 and
KL37 properties
i. $100,000 on or before the 1 st anniversary of the TSXV approval of
both the KL226 Option Agreement and KL37 Option Agreement
ii. $300,000 on or before the 4 th anniversary of the TSXV approval of
both the KL226 Option Agreement and KL37 Option Agreement.
KL37 Option Agreement
The Optionors are Rudolf Wahl (85%), Leonard Windover (5%), Darren Hutchinson (5%), Ryan
Harasym (5%). Plato, as the Optionee, will earn in for 100% interest in the KL37 claims upon
completion of the following:
i) Total cash payment of $2,000 as follows:
i. $2,000 to Optionors within 7 days of signing of both the KL37 Opti on
Agreement and KL226 Option Agreement
ii) Total payment of 1,600,000 common shares
ii. 1,000,000 common shares to Optionors within 15 days of TSXV
approval of both the KL37 Option Agreement and KL226 Opti on
Agreement
iii. 150,000 common shares to Optionors on or before the 1 st , 2 nd , 3 rd and
4th anniversary of the TSXV approval of both the KL37 and KL226
Option Agreement
iii) Combined exploration expenditures of $400,000 on either or both the KL226 and
KL37 properties
iv. $100,000 on or before the 1 st anniversary of the TSXV approval both
the KL37 and KL226 Option Agreement
v. $300,000 on or before the 4 th anniversary of the TSXV approval of
both the KL37 Option Agreement and KL226 Option Agreement
For both the KL226 and KL37 Option Agreements
i) A 3% Net Smelter Return Royalty to Optionors, with first right of refusal for 50%
buy back for $1,500,000.
ii) A 3% Gross Overriding Royalty from the production of dia monds only to
Optionors, with first right of refusal for 50% buy back for $1,500,000.
iii) Performance Shares of 1,000,000 common shares to Optionors , if a NI 43-101
compliant resource exceeding 100 million tonnes of Nb205/P205 and an
additional 2,000,000 common shares to Optionors, upon a posi tive bankable
feasibility study
iv) 10% of the sale price or option price in cash or shares to Optionors, if the KL226
or KL37 claims are sold or optioned to a third party.
About Plato Gold Corp .
Plato Gold Corp. is a Canadian exploration company lis ted on the TSX Venture Exchange with
projects in Marathon Ontario, Timmins Ontario and Santa Cruz, Argentina.
The Good Hope Niobium Project consists of a total of 19 claims, 263 claim units and 4208
hectares in Killala Lake Area and Cairngorm Lake Area Townships, near Marathon Ontario. In
May 2017, Plato signed an option agreement with Rudy Wahl and co-owners to acquire 100%
interest in the Good Hope Property. A drill program is planned for 2017.
The Timmins Ontario project includes 4 properties: Guib ord, Harker, Holloway and Marriott in
the Harker/Holloway gold camp located east of Timmins, O ntario. In November 2010, Plato
signed an agreement granting St Andrew Goldfields Ltd. the option to earn a 75% interest in the
above properties. On January 26, 2016, St. Andrew Goldfiel ds was acquired by Kirkland Lake
Gold Inc.. The Holloway and Marriott options are now held by Kirkland Lake Gold Inc..
In July 2012, Plato sold a 50% interest in the Guibord prop erty to Victory Gold Mines Inc. who
amalgamated with Northern Gold Mining Inc. on February 6, 2013. On December 22, 2015,
Oban Mining Corporation completed the acquisition of Nor thern Gold Mining. In June 2016,
Oban changed its name to Osisko Mining Inc. (“Osisko”). Osisko now holds the 50% interest in
the Guibord property.
In February 2013, Plato sold an 80% interest in the Harker p roperty to Northern Gold Mining
Inc. and was subsequently acquired by Oban Mining Corporat ion on December 22, 2015. In
June 2016, Oban changed its name to Osisko Mining Inc.. Osisko now holds the 80% interest in
the Harker property.
In Argentina, Plato owns a 75% interest in Winnipeg Minera ls S.A. (“WMSA”), an Argentina
incorporated company. The Lolita Property, held by WMSA , is comprised of a number of
contiguous mineral rights totaling 9,672 hectares. Work has a dvanced on this exploration
property to the point that it is drill-ready or ready to be optioned to a partner.
For additional company information, please visit: www.platogold.com.
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION PROVIDER (AS THAT
TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS
RESPONSIBILITY FOR THE ADEQUACY OF THIS RELEASE.
For further information, please contact:
Anthony Cohen
President and CEO
Plato Gold Corp.
T: 416-968-0608
F: 416-968-3339
www.platogold.com
Forward Looking Statements
This news release contains “forward-looking statements”, within the meaning of applicable securities laws. These statements include, but are not
limited to, statements regarding the,potential mineralization and resources, exploration results, and future plans and objectives. Generally, these
forward-looking statements can be identified by the use of forward-looking terminology such as “plans” , “expects” or “does not expect”, “is
expected”, “budget”, “scheduled”, “estimates”, “for ecasts”, “intends”, “anticipates” or “does not anti cipate”, or “believes”, or variations of
such words and phrases or state that certain action s, events or results “may”, “could”, “would”, “migh t” or “will be taken”, “occur” or “be
achieved”. 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, uncert ainties and other factors that may cause the actual results, use of proceeds, level of activity,
performance or achievements of Plato to be material ly different from those expressed or implied by suc h forward-looking statements, including
but not limited to risks related to: risks related to exploration; actual resource viability, and othe r risks of the mining industry . Although
management of Plato has attempted to identify impor tant factors that could cause actual results to dif fer materially from those contained in
forward-looking statements, there may be other fact ors that cause results not to be as anticipated, es timated 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. The Company does not undertake to update
any forward-looking statements that are incorporate d by reference herein, whether as a result of new i nformation, future events or otherwise,
except in accordance with applicable securities laws.