Peloton Advances All Four Gold Exploration Projects in 2019 and Announces Recommendations for Follow-up Exploration in 2020
PELOTON MINERALS CORPORATION
NEWS RELEASE
January 9, 2020 CSE SYMBOL: PMC
OTCQB SYMBOL: PMCFF
Peloton Advances All Four Gold Exploration Projects in 2019 and
Announces Recommendations for Follow-up Exploration in 2020
London, Ontario – Peloton Minerals Corporation (“Peloton” or the “Company”)
(CSE Symbol: PMC) (OTCQB Symbol: PMCFF) advanced all four of the Company’s
gold exploration projects during 2019 and all four projects are recommended for follow -
up exploration programs in 2020.
Three of the projects are located in Elko County, Nevada and one project is in the Virginia
City Mining District, Montana with the 2019 exploration results and 2020 plans provided
in alphabetical order of the project as below.
Golden Trail Project, Nevada – In late 2019, Peloton conducted 1,213 feet of core
drilling with 11 holes completed to an average depth of 65 feet and average length of 110
feet each from one of eleven drill pads covering a strike length of 300 feet and width of
about 110 feet along a 310 degree azimuth. Ten of the holes were drilled in two rows of
five drill holes forming five panels of scissored drill holes with - 45 degree inclination and
opposing 220 and 40 degree azimuths. All holes contained gold and silver mineralization,
typically from the top to the bottom of the hole with 82% of the tested footage and 75% of
the samples above the gold detection limit. Gold assays (ALS Minerals fire assay with
AAS finish) above the detection rate ranged from 0.005 grams per tonne (g/t) to 0.092 g/t
with Silver assays ranging from 0.5 g/t to 74.8 g/t.
This mineralized zone is continuous over a strike length of 300 feet and to a depth of 65.
It is open in bo th directions along st rike and to depth. The Company consid ers this
continuity from such an early stage drilling program to be si gnificant and would lo ok for
both expansion of the zone and an increase in grade from follow-up exploration.
At this time, drill data including assays, geochemical analysis, mineralogy and
hyperspectral mineralogical data are being compiled into a three dimensional model to
help identify structural controls and to guide further exploration. Included in this data set
is an airborne hyperspectral survey covering the surface of the entire 900 acre property
and extensive historical surface sampling and trenching described below. The follow-up
recommendations are expected to be an IP geophysical surve y, detailed mappi ng, and
additional drilling along strike and at depth.
Gold mineralization at Golden Trail is generally centered on approximately 10 square
kilometers of thermal metamorphism and hydrothermal/metasomatic alteration. Gold
mineralization occurs locally in north -west striking dilational zones containing
numerous, high -angle gold -bearing veins and adjacent replacement zones, centered
within calcsilicate ska rn. The largest identified surface vein extends over 1,200 meters
in length with an associated alteration zone averaging 30 metres wide. Gold values
above 20 ppb are common with several samples assaying above 9 g/t Au and one
above 28 g/t Au. Continuous 5-foot trench samples returned 13.7 grams gold with
36.2 grams silver in one 5 -foot trench, and 3.49 grams gold with 105 grams silver
in a second 5 foot trench. In weathered and oxidized outcrop samples, elevated Ag,
As, Sb and T I values accompany Au in iron -rich zones commonly associated with a
carbonate+montmorillonite+white mica assemblage.
Independence Valley Project, Nevada - The 2019 drill program consisted of one reverse
circulation drill hole drilled to a depth of 1,140 feet to test a potential down-dropped east
limb of a NNW trending antiform. This drilling encountered detectable gold mineralization
in a fine grained hypabyssal intrusive and in the contact zone with adjacent Paleoz oic
carbonate sedimentary rocks over a core length of 345 feet as well hydrothermal
alteration over a core length of 500 feet. B oth of these results Peloton views as
encouraging for the first hole drilled into the property. This drilling was conducted by
Kinross Gold USA Inc. (Kinross) under an option agreement which Kinross has elected
to terminate, thereby returning the property 100% to Peloton.
A rhyolite dome situated on the Independence Valley property remains untested .
Peloton geophy sical modelling of magnetic and CSAMT data has identified three
structures within the dome complex that are recommended for drill testing .
Independence Valley is situated on the Carlin Gold Trend, and is also within the
historical Spruce Mountain mining district which hosted many historic base and
precious metals mines since the 1840’s. The Spruce Mountain deposits have typically
been associ ated with rhyolitic and granitic intrusive rocks which Peloton believes are
the “Smoking Gun” – indicating the location of the structural feeders for both the
granitic magmas and gold -silver bearing mineralized fluids. The Independence Valley
rhyolite dome is the largest untested rhyolite structure in the Spruce Mining District.
Silver Bell St. Lawrence (SBSL) Project, Montana – A 2,112 foot core drilling program
was conducted in late 2019 on this property by Frederick Private Equity Corporation
and African Metals Corporation (collectively Frederick) who may earn a 75% interest in
the project by spending US$ 2,000,000. A total of 12 holes were drilled in addition to
surface sampling of veins, wall rocks and dumps. Assays are pending at this time, as well
as a report by the Frederick geologist which is expected to include recommendations for
follow-up exploration.
The 2019 drilling tested the gold vein system in and around the St. Lawrence mine which
is the eastern of two past producing gold mines on the property, the Silver Bell on west
and the St. Lawrence on the east . Both mines operated in the early 1900s and the St.
Lawrence was reactivated and operated in the early 198 0s. Historical production
records are incomplete but available information suggests that historical production at
the St. Lawrence was approximately 0.22 ounces per ton (“opt”) gold and 3.8 opt silver.
Smelter receipts for small shipments from the St. Lawr ence indicate that some ore with
much higher grades was shipped. For example, a smelter receipt from October 30,
1964 states that 8.027 tons were received grading 0.76 opt gold and 20.0 opt silver.
Historical production at the Silver Bell averaged approxim ately 0.2 opt gold and 15.1
opt silver.
The shafts for each of the former mines are located 3,600 feet apart and the exploration
hypothesis is that the two mines shared mineralized systems that may in part be
contiguous. Surface mapping and geophysical su rveying by the Company support this
initial hypothesis and indicate extension of the vein system farther east along strike
from the St. Lawrence mine.
Texas Canyon Project, Nevada – A field reconnaissance and sampling program w as
conducted on the Texas Canyon Project in late 2019 to follow up on Carlin style alteration
anomalies identified by an airborne Hyperspectral UV survey within hydrothermally
altered Paleozoic carbonate and clastic sedimentary rocks. This data will be incorporated
into an NI 43-101 technical report being prepared on this project which will be released
upon completion.
Nine (9) of the twenty -five (25) exploration grab samples from the Hyperspectral
anomalies were anomalous in gold and were anomalous in several elements including
Ag, As, Ba, Cd, Cu, Mn, Mo, Ni, P, Pb, S, Sb, V, W, and Zn. NI 43 -101 recommendation
will include more detailed geologic mapping and sampling of the Hyperspectral anomalies
Texas Canyon is centered on a major boundary fault betwe en mineralized Paleozoic
limestone and post -mineral Tertiary geologic units which include the Jarbidge Rhyolite
and tuffs and conglomerates of the Humboldt Formation. This fault and related
structures are thought to be the conduit for mineralizing fluids that altered and replaced
the limestone and limestone breccias. This is based on detailed geologic mapp ing,
surface geochemistry with gold values up to 1280 ppb and molybdenum values up to
1660 ppm, a surf ace magnetic survey and a surface radiometric survey. The recent
Peloton airborne hyperspectral survey corroborated prior data, showing broad hi AL -
illite and NH3 -illite anomalies at Texas Canyon.
Peloton President Edward (Ted) Ellwood comments : “Moving all four Peloton projects
forward in 2019 is fantastic in my view. The data collected on every project told us
something new and quite useful for designing the next programs. We look forward to the
2020 exploration season and toward building on the 2019 programs.”
Richard Capps , PhD, is the qualified person responsible for approving the technical
information contained within this release pertaining to the Nevada projects.
John Childs , PhD, is the qualified person responsible for approving the technical
information contained within this release pertaining to the Montana project.
For further information please contact:
Edward (Ted) Ellwood, MBA
President & CEO
1-519-964-2836
About Peloton: Peloton Minerals Corporation is a reporting issuer in good standing in
the Provinces of Ontario and British Columbia whose common shares are listed on the
CSE (Symbol: PMC) and are quoted in the U.S. as OTCQB Symbol: PMCFF. There are
84,621,354 common shares issued and outstanding in the capital of the Company.
Peloton holds three gold exploration projects located in Elko County, Nevada , and one
gold exploration project in the Virginia City Mining District, Montana, which is under option
to Frederick Private Equity Corporation and African Metals Corporation.
CSE has not reviewed and does not accept responsibility for the adequacy or
accuracy of this release.
This news release contains "forward-looking information" (within the meaning of applicable Canadian securities laws)
and "forward-looking statements" (within the meaning of the U.S. Private Securities Litigation Reform Act of 1995).
Such statements or info rmation are identified with words such as "anticipate", "believe", "expect", "plan", "intend",
"potential", "estimate", "propose", "project", "outlook", "foresee" or similar words suggesting future outcomes or
statements regarding an outlook.
Such statements include, among others, those concerning the Company’s plans for exploration activity and to conduct
future exploration programs. Such forward -looking information or statements are based on a number of risks,
uncertainties and assumptions which may cause actual results or other expectations to differ materially from those
anticipated and which may prove to be incorrect. Assumptions have been made regarding, among other things,
management's expectations regarding its ability to initiate and complete future exploration work as expected. Actual
results could differ materially due to a number of factors, including, without limitation, operational risks in the completion
of the Company’s future exploration work, technical, safety or regulatory issues.
Although the Company believes that the expectations reflected in the forward -looking information or statements are
reasonable, prospective investors in the Company’s securities should not place undue reliance on forward -looking
statements because the Company can provide no assurance that such expectations will prove to be correct. Forward-
looking information and statements contained in this news release are as of the date of this news release and the
Company assumes no obligation to update or revise this forward-looking information and statements except as required
by law.