Phenom Resources Identifies 3.2km Long Root System to Its Carlin-Type Gold System on the Carlin Gold Trend
Phenom Resources Identifies 3.2km Long Root System to Its Carlin-Type Gold System on the Carlin
Gold Trend
July 6, 2021 - Vancouver, British Columbia – Phenom Resources Corp. (TSX-V: PHNM) (OTCQX®: FVANF) (FSE:
1PY) (“Phenom” or the “Company”) (formerly First Vanadium Corp.) is pleased to provide final results from its
Induced Polarization (IP) survey over the gold system on its Carlin Gold-Vanadium Property on the Carlin Gold
Trend of Nevada. Dave Mathewson, Geological Advisor and Jim Wright, Wright Geophysics, Inc., f ormer
Newmont senior geophysicist, have identified by the IP, a large north-south oriented root system to the much
larger sulfide plume related to the gold system. The Company’s IP survey identified this large root system now
characterized as having a strike length of at least 3.2 kilometres (2 miles) long (north-south) and 300 metres
(980 ft) to 1.3 kilometres ( 0.8 miles) wide (east-west). The strongest most persistent segment of the north -
south trend is 1.4 kilometres long and between 500 metres to 1.3 kilometres wide (see Figure 1).
Figure 1: IP Chargeability Plan 500m Below Surface – large root system/Chargeability Anomaly in orange
Dave Mathewson states, “ The finalized IP survey now shows the overall size , orientation, persistence and
location of the root system on our property and point s to prospective higher sulfide portions . The IP
demonstrates the system is bigger than anticipated and thus, the significance of the system and the importance
of smart vectoring tools in this large system. Our first hole is in progress to provide an initial test of the root
system with our current stage of vector drilling.”
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Induced polarization geophysics is widely recognized as a highly effective v ectoring tool for identifying Carlin
style systems. IP was largely used in the discovery of the Betze, Screamer, Rodeo, Griffin and Deep Star gold
mines on the Carlin Gold Trend. Root systems of Carlin -type gold systems generally contain higher sulfide
content (detected by IP) and higher-grade gold portions of Carlin systems.
According to Jim Wright, geophysicist, the IP data quality is excellent with clear depth penetration in the order
of 800 m (2625 ft), giving rise to a good solid moderate to strong chargeability anomaly, typical of abundant
sulfides. Average chargeability amplitudes (a reflection of disseminated sulfide content) are in the 25-30
millisecond range. The IP survey also produced coincident strong resistivity lows likely caused by clay alteration.
Jim Wright produced a 3D model of the ope n-ended lengthy anomaly from the 15 lines of IP on the property.
To best demonstrate the anomaly in plan view near the Rodeo Creek/Popovich contact, a slice of the 3D model
at 500m below the surface is shown in Figure 1. This figure demonstrates the north-south length (3.2km), width
(300m to 1300m) and strength (moderate -strong) of the anomaly. The strongest most persistent segment of
the north-south trend is 1.4 kilometres long and between 500 metres to 1.3 kilometres wide.
Figures 2 is one example of an east-west IP sideview cross-sections or Inverted sections, that demonstrate the
core of the untested chargeability anomaly or root system with depth, and its proximity to the Company’s fall
2020 drilling (RC20-01). The upper contact of the lower plate Rodeo Creek and Popovich units are interpreted
from drill data and coincide with t he anomaly. Rodeo Creek and Popovich units are the host rocks to the
majority of the big, and also the compact high grade gold deposits and mines in the Carlin Tre nd. The hole in
progress is angled at 60o to the west into the anomaly from the same collar location as RC20-01.
Figure 2: Line 2 IP Chargeability Inverted Section – untested root system/Chargeability anomaly and RC20-01
In other news, the Company has negotiated an amendment to the Carlin Vanadium property option agreement
which previously allowed the Company to buy-out the 2% NSR royalty granted to the owner of the property for
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US$4,000,000, at the same time the Company exercises the purchase option and acquires 100% in the property.
To exercise the option, Phenom is required to pay the owner US$1,900,000 by June 30, 2022 . The Company
currently has sufficient funds to make this option payment and expects to complete this option payment within
the required times. In order to manage the NSR buy -out, the Company has negotiated an extension of time
within which it may purchase the NSR royalty. Under the terms of the amendment agreement, the Company
has agreed to pay half of the final cash payment (US$955,000) to the owner by July 30, 2021, with the balance
(US$955,000) being due by June 30, 2022. The Company also agreed to issue 1,000,000 common share
purchase warrants to the owner within 3 business days of rec eipt of TSX Venture Exchange approval to the
amendment agreement, with each warrant being exercisable for one common share at a price of CAD$0.75 per
share for a period of 5 years from the date of issue of the warrants. The parties further agreed that if the
Company wishes to purchase the NSR royalty, it must do so by paying the owner US$4,000,000 by June 30,
2023. The Company, in its sole discretion, may also extend this deadline on an annual basis for up to 4 additional
years, by paying the owner an additional US$250,000/year on or before June 30 of each year, commencing June
30, 2023, resulting in the latest possible payment deadline being June 30, 2027. The amendment agreement is
subject to acceptance by the TSX Venture Exchange.
About First Vanadium Corp.
First Vanadium has an option to earn a 100% interest in the Carlin Gold-Vanadium Project, 6 miles south from
the town of Carlin, Nevada and Highway I-80. The Project lies in the Carlin Gold Trend. Approximately 9 million
ounces comprised of multiple gold deposits, including past producing mines, are present near the FVAN
property (5-15km). The Carlin Gold-Vanadium Project also hosts the Carlin Vanadium deposit.
ON BEHALF OF PHENOM RESOURCES CORP. (formerly First Vanadium Corp.)
per: "Paul Cowley"
CEO & President (604) 340-7711 [email protected] www.phenomresources.com
Technical disclosure in this news release has been reviewed and approved by Dave Mathewson, a Qualified Person
as defined by National Instrument 43-101, and Geological Advisor to the Company.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward-looking information
Certain statements in this news release constitute "forward -looking" statements. These statements relate to future events or the Company's
future performance and include the Company’s ability to meet its obligations under the Access and Mineral Lease Agreement and the conditions
required to exercise in full its option to acquire the Carlin Vanadium project, to finance and drill test the interpreted gold target model and to
encounter potential gold zones shown in the gold model. All such statements involve substantial known and unknown risks, uncertainties and
other factors which may cause the actual results to vary from those expressed or implied by such forward-looking statements. Forward-looking
statements involve significant risks and uncertainties, they should not be read as guarantees of future performance or results, and they will
not necessarily be accurate indications of whether or not such results will be achieved. Actual results could differ material ly from those
anticipated due to a number of factors and risks. Although the forward-looking statements contained in this news release are based upon what
management of the Company believes are reasonable assumptions on the date of this news release, the Company cannot assure investors that
actual results will be consistent with these forward -looking statements. The forward -looking statements contained in this press release are
made as of the date hereof and the Company disclaims any intention or obligation to update or revise any forward-looking statements whether
as a result of new information, future events or otherwise, except as required under applicable securities regulations.