Central Timmins Exploration Corp. Options
Central Timmins Exploration Corp. Options
Silver Reef Property in Northwest BC
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TORONTO
,
June 11, 2020
/CNW/ -
Central Timmins Exploration Corp.
("CTEC" or the
"Company") (TSXV: CTEC) reports that, subject to regulatory approval, it has signed an option
agreement with an arm's length private vendor to acquire up to a 100% interest in the Silver Reef
Property located in northwest
British Columbia
.
Silver Reef
The Silver Reef Property consists of six mineral tenures that cover an area of over 4,425 hectares
approximately 85 kilometers north of Hazelton BC. The exploration target at Silver Reef is similar to
the historic and high-grade Silver Standard Mine located approximately 80 kilometers to the south.
At Silver Reef, as with Silver Standard, the quartz/carbonate veins and stockwork are associated
with a regional shear zone that cuts through the alteration halo of a large granitic intrusive.
The Silver Reef property is a new discovery where limited exploration has been carried out to date.
A total of 51 rock grab samples have been collected on the property with the highest-grade grab
sample yielding 1,892 grams per tonne silver, 2.01 grams per tonne gold, 4.46% lead, and 2.7%
zinc from a massive sulphide vein subcrop. Grab samples are collected as niche samples of rock
material of specific style or character of interest and are not necessarily representative of the
mineralization hosted on the property.
In 2019, eight shallow packsack drill holes were completed (at depths ranging from 0.6 to 1.2
meters), with six holes partially successful in encountering bedrock. Although packsack drilling
yielded generally poor core recoveries, results demonstrated elevated mineral values ranging from
0.11 to 0.42 grams per tonne gold, 56.4 to 322.0 grams per tonne silver, 0.12 to 1.0+% arsenic,
225 to 4,850 grams per tonne lead, and 182-712 grams per tonne antimony. The mineralization has
been traced for over 1,500 meters, has a combined width up to 100 meters wide, and is made up of
three zones. The hanging wall zone comprises quartz/calcite veins and stockwork with a combined
width of up to 50 meters wide. Individual veins range up to 20 meters wide. The main shear zone is
up to 30 meters wide and contains variable amounts of disaggregated quartz/calcite and sulphide
veins. Discontinuous ferrocrete and gossanous kill zones along the hanging wall contact of the main
structure are up to 20 meters wide and indicate the presence of veins and stockworks containing
massive sulphides.
Quality Assurance
Graeme Evans
, P.Geo is the qualified person responsible for the Silver Reef Property and has
reviewed, verified and approved the scientific and technical information in this news release relating
thereto.
In 2018, rock grab samples collected were transported for preparation and analysis to the SGS
Mineral Services laboratory in
Burnaby, BC
,
Canada
for multi-elements ICP and fire assays for gold.
In 2019, pack sack drill core and rock grab samples were transported for preparation and analysis
to the ALS Canada Ltd. laboratory in
North Vancouver, BC
,
Canada
for multi-elements ICP and fire
assays for gold.
Option Agreement Terms
Under the terms of the Option Agreement, the Company can acquire up to a 70% interest in Silver
Reef over a three year option period by paying to the vendor:
$50,000
and 200,000 shares in its
capital on the signing of the agreement;
$200,000
and 200,000 shares in its capital on the first
anniversary of the agreement; and
$500,000
and 800,000 shares in its capital on the second
anniversary of the agreement. The Company is also required to incur exploration expenditures of
$250,000
before the first anniversary of the agreement,
$750,000
of cumulative exploration
expenditures by the second anniversary of the agreement and
$2 million
of cumulative exploration
expenditures by the third anniversary of the agreement.
Following exercise of the option, the Company has the right for a period of 120 days to acquire the
remaining 30% interest in Silver Reef, for a 100% total interest, on payment of
$7.5 million
of which
up to
$4 million
may be paid in shares of the Company at its election. If the Company elects to not
purchase the remaining 30% interest, the Company and the vendor shall form a joint venture, with
the Company appointed the operator. During the first three years of the joint venture, the Company
will fund the vendor's participating interest in the joint venture. If the vendor fails to sell its interest in
the joint venture during such three year period, the vendor's interest will convert to a 3% net smelter
returns royalty, provided that the Company will have the opportunity to purchase the vendor's
interest prior to such conversion for
$7.5 million
.
About Central Timmins Exploration Corp.
CTEC is an early-stage Canadian junior exploration company focused on precious metals exploration
and development.
Forward Looking Information
This press release contains "forward-looking information" within the meaning of applicable securities
laws that is intended to be covered by the safe harbours created by those laws. "Forward-looking
information" includes statements that use forward-looking terminology such as "may", "will", "expect",
"anticipate", "believe", "continue", "potential" or the negative thereof or other variations thereof or
comparable terminology. Such forward-looking information includes, without limitation, the
Company's expectations, strategies and plans for the Silver Reef Property, including the Company's
planned expenditures and exploration activities.
Forward-looking information is not a guarantee of future performance and is based upon a number
of estimates and assumptions of management at the date the statements are made. Furthermore,
such forward-looking information involves a variety of known and unknown risks, uncertainties and
other factors which may cause the actual plans, intentions, activities, results, performance or
achievements of the Company to be materially different from any future plans, intentions, activities,
results, performance or achievements expressed or implied by such forward-looking information.
See "Risk Factors" in the Company's final prospectus dated
October 4, 2018
filed on SEDAR at
www.sedar.com
for a discussion of these risks.
The Company cautions that there can be no assurance that forward-looking information will prove to
be accurate, as actual results and future events could differ materially from those anticipated in such
information. Accordingly, investors should not place undue reliance on forward-looking information.
Except as required by law, the Company does not assume any obligation to release publicly any
revisions to forward-looking information contained in this press release to reflect events or
circumstances after the date hereof.
Neither the Exchange nor its Regulation Services Provider (as that term is defined in the policies of
the Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE
Central Timmins Exploration Corp
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For further information:
Central Timmins Exploration Corp., www.centraltimmins.com; Joseph
Ovsenek, President, CEO and Chairman, [email protected], Tel: +1 (604) 765-3424;
Chris Hopkins, CFO, [email protected], Tel: 416 786 9793
CO: Central Timmins Exploration Corp
CNW 14:20e 11-JUN-20