Chilean Metals Announces Golden Triangle Acquisition
Chilean Metals Announces Golden Triangle Acquisition
Toronto, ON. October 13, 2020. Chilean Metals Inc. (“Chilean Metals,” “CMX” or the
“Company”) (TSX.V: CMX, SSE: CMX, MILA: CMX) is pleased to announced it has reached
and agreement to acquire 100% of the Golden Ivan property via a series of option payments and
work commitments as further detailed below. Golden Ivan is located approx. 3 kilometers to the
east of Stewart, BC in the heart of the Golden Triangle. The Golden Ivan property consists of
thirteen (13) mineral claims, all in good standing, for a total area of approximately 797 hectares.
The terms of the agreement which is subject to the approval of the TSXV is as follows. Chilean
is to make cash payments totalling $150,000 to the Optionor, Grandby Gold Inc., (the "Cash
Payments") on or before the dates set out below:
(i) $50,000 on or before September 30,2021;
(ii) an additional $50,000 on or before September 30,2022; and
(iii) an additional $50,000 on or before September 30,2023;
Make stock payments via the issue of an aggregate of I1,400,000 Shares to the Optionor (the
"Share Payments"), on or before the dates set out below:
(i) 3,900,000 Shares within five Business Days after receipt of the TSXV Approval;
(ii) an additional 2,500,000 Shares on or before September 30,2021
(iii) an additional 2,500,000 Shares on or before September 30,2022: and
(iv) an additional 2,500,000 Shares on or before September 30th, 2023:
All stock payments would come with a four month hold period.
Chilean would be required to incur an aggregate of $ 1,800,000 of work expenditures on the
Property on or before the dates set out below:
(i) $450,000 in Work Expenditures on or before September 30, 2021
(ii) $450,000 in Work Expenditures on or before September 30, 2022
(iii) $450,000 in Work Expenditures on or before September 30, 2023
(iv) $450,000 in Work Expenditures on or before September 30, 2024
On performance of the payments noted above and completion of the work commitments Chilean
Metals Inc would acquire a 100% interest subject only to a 2.5% NSR royalty. Chilean retains
the option to purchase 40% of this royalty for a one-time payment of $1,000,000.
Figure 1 – Golden Ivan as noted in Maps above is located in the heart of Golden Triangle & Close to Stewart
“We are excited to reach agreement to explore Golden Ivan. The acquisition is structured so if we are
successful with exploration, we pay more…as we would be more than willing to do! The initial entry is
very reasonable and reflects the vendors knowledge of Chileans existing assets and their belief in the
share value potential. Geographically Golden Ivan’s location between StrikePoint’s Silverado project to
the south and Scottie Resources to the North on a under explored and undrilled land package is certainly
very interesting to us on a geological basis. The recent Geophysical work done by the Optionor makes us
anxious to get in their next summer and drill those three Porphyry looking targets.” Commented Terry
Lynch Chilean CEO.
About the Golden Ivan Property
The Golden Ivan property is situated toward the south of British Columbia’s prolific ‘Golden
Triangle’, which hosts numerous profitable mineral deposits and is known to be highly
prospective for large scale mineral systems, including large-scale porphyry systems, high-grade
gold and silver veins, and volcanogenic massive sulphides. The Golden Triangle is host to past
and current mining operations including Pretium, Eskay Creek, Johnny Mountain, Red
Mountain, Snip Mine, Premier Mine, Golden Bear and Valley of the Kings. The Golden Triangle
has reported mineral resources (past production and current resources) in total of 67 million oz of
gold, 569 million oz of silver and 27 billion pounds of copper.
The Golden Ivan property is located approximately 15km south west of the Red Mountain
Gold/Silver deposit and 30 km south of the historic Premier Gold mine. Immediately to the south
of the property significant Silver resources have recently been established at the Porter-Idaho
deposit, along several mineralized veins that strike onto the Golden Ivan property.
Physiography and Access: The property covers dominantly high alpine areas situated between
Mt Rainy and Mt Maggie and is located adjacent to the Cambria Icefield. Several small glaciers
occur on the property, which is otherwise typified by rock outcrop and glacial debris, with
forested areas at lower elevations toward the west. The property is accessible by Helicopter from
the town of Stewart, and is amenable to seasonal exploration from June onwards. Stewart has
deep sea port access, road access, and is a regional hub for mineral exploration services.
Capsulate Geology: Based on the limited publicly available information; the property is located
within Stikine Terrane (Stikinia) of the Canadian Cordillera, and is underlain by felsic to
intermediate volcanogenic sediments of the Jurassic Hazelton Group, which are unconformably
overlain by Bowser Basin sediments. The property is understood to be situated over steeply
dipping overturned sediments within the Mt Rainy syncline, and is located adjacent to a
significant E-W fault (the Silverado fault) located toward the south of the property. The local
area additionally hosts several intrusive complexes of the Coast Crystalline Belt; including
Hyder and Glacier creek plutons. Numerous dykes are reported to cross the property in a general
north west direction.
Previous Work: The property hosts two (2) known mineral showings (Gold Ore, and Magee),
and a portion of the past producing Silverado Mine, which was reportedly exploited between
1921 and 1939. These mineral showings are described to be Polymetallic veins that contain
quantities of Silver, Lead, Zinc +/- Gold +/- Copper. Numerous additional mineral occurrences,
showings and past procuring mines are located in the immediate areas surrounding the property,
further supporting the presence of widespread mineralization in the areas.
The property is relatively under explored. Work that was completed by previous operators from
the 1980’s to 2011, included prospecting, limited geochemical sampling, some ground-based
geophysics surveys; limited sampling from the historical workings at the Silverado Mine was
also performed.
In 2018 Precision Geophysics completed an 88-line kilometre combined magnetic and gamma-
ray spectrometry survey on behalf of the vendor Granby Gold Inc. Standard magnetics and
radiometric data products were prepared and additional interpolate structural analyses were
performed on the collected data. A number of areas of coincident magnetic and radiometric
anomalism have been identified, additionally ‘structurally prepared’ zones are identified from the
structural analysis interpolates. Such characteristics are widely regarded as favourable indicators
of widespread hydrothermal alteration aka Porphyries, and will likely aid in vectoring toward
any causative source intrusions that may be located on the property.
Future Exploration: The company intends to focus future exploration efforts to determine the
potential causative source intrusions of the mineralization observed across the property, and
surrounding areas. The initial phase of exploration is anticipated to include systematic geological
and structural and alteration mapping, as well as geochemical sampling across the property to
determine any local areas of anomalism. This would be followed by ground-based geophysics to
confirm local structural trends prior to proceeding with an initial drill program in the summer of
2021.
Qualified Person
Qualified Person Luke van der Meer, P.Geo. (Licence # 37848), Independent Geological
Consultant., Qualified Person under NI 43- 101 on standards of disclosure for mineral projects,
has reviewed and approved the technical content of this release.
About Chilean Metals,
www.chileanmetals.com/
Chilean Metals Inc. is a Canadian Junior Exploration Company focusing on high potential Copper
Gold prospects in Chile and Canada.
Chilean Metals Inc is 100% owner of five properties comprising over 50,000 acres strategically
located in the prolific IOCG (“Iron oxide-copper-gold”) belt of northern Chile. It also owns a 3%
NSR royalty interest on any future production from the Copaquir e Cu-Mo deposit, recently sold
to a subsidiary of Teck Resources Inc. (“Teck”). Under the terms of the sale agreement, Teck has
the right to acquire one third of the 3% NSR for $3 million dollars at any time. The Copaquire
property borders Teck’s producing Quebrada Blanca copper mine in Chile’s First Region.
ON BEHALF OF THE BOARD OF DIRECTORS OF
Chilean Metals Inc.
“Terry Lynch”
Terry Lynch, CEO
Contact: [email protected]
Forward-looking Statements: This news release may contain certain statements that may be
deemed "forward -looking statements". All statements in this release, other than statements of
historical fact, that address events or developments that CMX expects to occur, are forward
looking statements. Forward-looking statements are statements that are not historical facts and are
generally, but not always, identified by the words "expects", "plans", "anticipates", "believes",
"intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions
"will", "would", "may", "could" or "should" occur. Forward -looking statements in this document
include statements regarding current and future exploration programs, activities and results.
Although CMX believes the expectations expressed in such forward-looking statements are based
on reasonable assumptions, such statements are not guarantees of future performance and actual
results may differ materially from those in forward -looking statements. Factors that could cause
the actual results to differ materially from those in forward -looking statements include market
prices, exploitation and exploration success, continued availability of capital and financing,
inability to obtain required regulatory or governmental approvals and general economic, market
or business conditions. Investors are cautioned that any such statements are not guarantees of
future performance and actual results or developments may differ materially from those projected
in the forward-looking statements.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in
the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of
this release.