Update on Phase I Drill Program and Exploration; Corporate Update
Update on Phase I Drill Program and Exploration; Corporate Update
June 27, 2019 TSX-V PHD
Providence Gold Mines Inc. (TSX-V: PHD) (“the Compan y”) is pleased to announce preliminary
results from its phase one drill program at the Providence Group of Gold Mines, located in the historic
Motherload Gold District of California. The Providence Gold Property is located in the foothills of the
Sierra Nevada mountain range just east of the city of So nora, California. This is the first phase of a
planned two phase drilling program, and the first dr ill program ever performed on this past historical
high grade producer.
Designed to test the vein system near surface and outli ne additional phase two drilling targets, phase
one consisted of 13 HQ size core holes. A small portion of the Fairplay vein was tested for 300 metres
along strike, for a total of 562 meters drilled. Five of the drill holes intersected the Providence trend,
extending the zone by 100 meters to the north. Drilli ng also intersected five near-surface anomalous
gold targets within the Fairplay vein ranging from 1. 0 g/t to 3.7 g/t Au, over an average width of
approximately 3 meters.
Assay results have been received from Bureau Veritas Analyt ical Laboratory in Sparks, Nevada .
Further updates on the first phase of drill program, along with assay results, will be released as soon as
possible. .
Overall, the first phase drill program results are very encouraging, having confirmed the location of the
Fairplay vein system at surface and enabling the Company to focus on the structural controls of the
mineralized shoots.
With the recent completion of an access road, the Compa ny is now able to drill several high priority
targets - including the Mexican and McCarthy veins - durin g its second phase of drilling. The Mexican
and McCarthy mines reported historical recoveries of 4 an d 5
ounces of gold per ton, respectively, and have only been m ined
to a 100 foot depth (30 metres). Underground drifts f rom the
Providence workings had been planned, but not completed, prior
to shut down in 1916.
Recently, a brief examination of the historical stockpile a sample
bearing visible gold was discovered. The Company intends to
conduct a comprehensive testing program of the stockpile using
an excavator. A set of exploration pits will be excavat ed and
representative samples will be collected for gold an alysis and
measuring specific gravity. At this time, the potential quantity of
the stockpile material is conceptual in nature but an a ccurate
determination of the location, volume and tonnage o f the
Sample on surface of the stockpile
stockpile will result in the target being delineated as a mineral resource.
Corporate Update
The Company announces that Mr. David Eaton has resigned f rom the Company’s Board of Directors
effective June 18, 2019.
“On behalf of the Board and the Company, I would like to thank Dave for his time and dedication to
Providence Gold Mines during his tenure on the Board and wish him all the best in his future
endeavours ,” stated Mr. Ronald Coombes, Chief Executive Officer.
The Company will be seeking a mining engineer to fill the vacant Board seat, to both strengthen its
technical team and meet future technical needs.
The Company further announces that it proposes to enter into a shares for debt agreement with Baron
Global Financial Canada Ltd. ("Baron") to settle accoun ts payable of $24,000 through the issuance of
200,000 common shares at a deemed average price of $0.12 per share (the “Debt Transaction”). The
Company will have a first right of refusal to purchase up to 100,000 of the Debt Settlement shares at a
fixed price of $0.10 per share.
The common shares proposed to be issued under the Debt Transaction will be subject to a four month
hold period from the date of issuance in accordance wi th applicable securities laws. The issuance of
common shares as contemplated in the Debt Transaction is s ubject to the prior approval of the TSX
Venture Exchange.
The Debt Settlement is considered a "related party tran saction" pursuant to Multilateral Instrument 61-
101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101"), as Baron is related
to the Company via a common director. The Company is exe mpt from the requirements to obtain a
formal valuation and minority shareholder approval in connection with the Debt Settlement in reliance
of sections 5.5(a) and 5.7(a) of MI 61-101, on the ba sis that participation in the Debt Settlement by
Insiders did not exceed 25% of the fair market value of the Company's market capitalization.
Qualified Person
John Kowalchuk, P. Geo, a geologist and qualified person (as defined under NI 43-101) has read and
approved the technical information contained in this news release.
We invite all shareholders and stakeholders to join the Providence Gold Mines portal on 8020 Connect.
Join here: http://b.link/Providence
ON BEHALF OF THE BOARD
"Ronald Coombes"
Ronald Coombes, President & CEO
FOR FURTHER INFORMATION PLEASE CONTACT:
Ronald Coombes
Mobile: 1- 604- 724-2369
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined
in the policies of the TSX Venture Exchange) accept s responsibility for the adequacy or
accuracy of this release.