Ethos establishes new technical advisory team, stakes district scale gold projects in Quebec and Ontario, announces financing
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Ethos establishes new technical advisory team, stakes district scale gold
projects in Quebec and Ontario, announces financing
Vancouver, BC – August 5, 2020, Ethos Gold Corp. (“ Ethos ” or the “ Company ”) (TSXV:ECC)
(OTCQB: ETHOF) is pleased to announce that Rob Carp enter, Ph.D., P.Geo. has joined the Company
as Chief Technical Advisor. He will lead a new high ly experienced technical advisory team which
includes Dr. Robert Brozdowski, Dan MacNeil M.Sc., and Dr. Alan Wainwright. As CEO of Kaminak
Gold Corporation, Rob led the Kaminak team from ini tial listing in 2005 through acquisition and
discovery of the multi-million ounce Coffee Gold Pr oject, Yukon. That project was acquired by
Goldcorp in 2016 for over $500 million. This team has had a close and successful working
relationship over many years leading to a number of significant discoveries and has a long
affiliation with Discovery Group of which Ethos is a member. Principals of Discovery Group
including John Robins and Jim Paterson are also adv isors to Ethos and long-standing shareholders.
Ethos is further pleased to announce that Marc L’Heureux, P.Geo., M.A.Sc. has joined the Company
as a technical advisor to oversee the Company’s act ivities in Quebec. Finally, Ethos is pleased to
announce that Jeff Sundar a long standing member of Discovery Group has joined Ethos as
Corporate Development Advisor. Resumes for the new Ethos advisory team are included in the
addendum to this news release.
Rob and his team will work closely with Jo Price, V P Exploration of Ethos, to pursue a new strategy
by Ethos to acquire and explore district scale gold projects in Canada. To initiate this strategy,
based on the recommendations of the new advisory te am, Ethos has recently staked two projects:
the Schefferville Gold Project in Quebec and the Fuchsite Lake Gold Project in Ontario.
Commented Craig Roberts, P.Eng., President & CEO of Ethos: “We are very excited to be embarking
on this new strategy to acquire district scale gold projects in Canada driven by an outstanding
technical team. This team brings a long affiliatio n with Discovery Group and we look forward to
working closely with Discovery Group in pursuing th is new strategy. We are currently reviewing
several other project opportunities and will announce any additional acquisitions as they occur.”
Schefferville Gold Project, Quebec
In Quebec, Ethos has staked a total of 288 km 2 area in two claim blocks: the Sable block (234 km 2)
is centered 80 kilometers northwest of Schefferville and the Hamard block (54 km 2) is centered 35
kilometers due west of Schefferville. The Sable an d Hamard claims cover extensive areas of the
Lilois Complex, a 2.7 billion-year-old unit charact erized by the presence of numerous iron
formations, many of which locally host gold mineralization. Sable and Hamard occur within a 20 km
wide (east-west) by 70 km long (north-south) corrid or along the Quebec - Labrador border. In
1985, a Quebec Ministry field team discovered the L ac du Canoe gold occurrence (up to 18.9 g/t
Au). Between 1986 and 1997, follow up work by the Quebec Ministry and several companies
resulted in the discovery of approximately forty (4 0) gold occurrences grading from 1 g/t Au to up
to 40 g/t Au in mineralized iron formations with 3- 20% pyrrhotite and up to 10% arsenopyrite.
Subsequent drilling yielded intervals including 18. 1 g/t Au over 0.7m, 5.83 g/t Au over 3.1m, and
1.05 g/t over 12.55m (Quebec Assessment Reports GM45903 & GM66613).
The primary exploration target is sulphidized iron formation, which occurs where the iron
formations are cut by late, steep fault and shear s tructures that were pathways for hydrothermal
fluids during deformation and metamorphism. This re sulted in suphidization of the iron
formations, with attendant gold and arsenopyrite mi neralization, along and adjacent to these
structures. Additionally, significant mineralization may extend into the bounding paragneisses, and
also may be controlled by structures adjacent to co ntacts of paragneiss and iron formation with
various intrusive bodies.
Planned work by Ethos on the Sable and Hamard claims aims to extend systematic gold exploration
into geologically analogous but thinly till covered terrain, particularly along the major poorly
exposed structures. A detailed aeromagnetic survey is planned for the claim blocks, to assist in
defining the regional structural framework, but als o (as confirmed possible by examining the
results of some small-scale historic ground magnetic surveys) to directly define areas of magnetite-
bearing iron formation within the paragneiss that t end to be expressed as subtle magnetic highs
where unaltered, and are cut by discrete magnetic l ow trends where they are altered and
sulphidized in areas favorable for gold mineralizat ion. Marc L’Heureux, P.Geo., M.A.Sc. will act as
adviser on the Schefferville Gold Project.
Fuchsite Lake Gold Project, Ontario
The newly staked Fuchsite Lake claim block comprise s 3750 hectares located 20 km north of the
town of Armstrong, Ontario. The southern boundary of the claim block can be accessed by forestry
roads that link the property to the nearby town. Th e target is Archean shear zone hosted gold
within deformed and altered ultramafic (fuchsite altered) and mafic volcanic rocks. This setting and
rock type association is a major indicator of gold mineralization in many world class gold camps in
the Superior Province of Ontario and Quebec.
The prospective shear zones each extend more than 5 km along trend and were first identified by
regional mapping programs in the 1970’s by the Onta rio government (OGS Report 251). The
region, however, has largely been overlooked by exp loration companies. The only recorded work
for gold comprises 5 short drill holes (all less th an 40m deep) completed on the “Lett Occurrence”
in 1981. Drill logs detail extensive hydrothermal a lteration, brecciation, quartz veining and
sulphide mineralization however no assays are avail able. The Ontario government sampled this
outcropping zone (OGS Report 251) and obtained 1.7 grams per tonne gold and 1.4 grams per
tonnes gold from two separate samples. No follow up work has been recorded in nearly 30 years.
The Fuchsite Lake claims represent a new greenfield fault zone gold target that has been
overlooked and under explored despite reasonable ac cess and favourable rock types and
alteration that commonly accompany large gold disco veries. The presence of anomalous gold in
outcrop samples within shears suggest a systematic structural and targeting program on the claim
block will help assess the gold potential. Initial work will consist of ground truthing our s hear zone
model followed by an airborne magnetic survey desig ned to map out the structural geometry at the
property scale.
The qualified person has not verified the drilling data disclosed in this release, including sampling
data and assays. These data come from historical as sessment and OGS reports made between
1981 and 1997.
Corporate Update
A technical team recently completed a site visit to the Company’s Perk Rocky copper-gold
porphyry project. Exploration plans and budgets fo r this project are current being finalized and
Ethos will provide an update on this project shortl y. Plans and budgets for the Company’s Iron
Point gold project in Nevada are also being finalized and an update on this project will be provided
shortly. Ethos owns 1.9 million shares of Ridgelin e Minerals which holds a portfolio of gold
projects in Nevada. Ridgeline is currently complet ing an IPO priced at $0.45 per unit. As at mid-
July Ethos has cash, receivables (primarily Quebec and BC tax and exploration credits) and
securities (including the Ridgeline shares) of approximately Cdn $3.4 million.
Financing
Ethos announces the following private placements (collectively, the “Private Placements”):
1) a private placement of 10,000,000 units priced at $ 0.14 per unit for gross proceeds of
$1,400,000. Each unit will comprise one common sha re, and one half of one common
share purchase warrant. Each whole warrant will be exercisable into one common share of
the Company at an exercise price of $0.20 for a per iod of two years following closing. The
common share purchase warrants will be subject to a cceleration at the Company’s
discretion in the event its common shares trade on the TSX Venture Exchange on a volume
weighted average price (“VWAP”) basis of C$0.40 or more for a period of ten consecutive
trading days. Proceeds of this offering will be uti lized on the Company’s Iron Point project
in Nevada and for general working capital.
2) an Ontario flow through private placement of 2,000, 000 flow through units priced at $0.16
per unit for gross proceeds of $320,000. Each unit will comprise one flow through share,
and one half of one non-flow through common share p urchase warrant. Each whole
warrant will be exercisable into one common share o f the Company at an exercise price of
$0.22 for a period of two years following closing. The common share purchase warrants
will be subject to acceleration at the Company’s di scretion in the event its common shares
trade on the TSX Venture Exchange on a volume weigh ted average price (“VWAP”) basis of
C$0.40 or more for a period of ten consecutive trad ing days. Proceeds of this offering will
be utilized on the Company’s Fuchsite Lake Gold Pro ject in Ontario or on eligible flow
through expenditures on other Ontario projects.
3) a British Columbia charity flow through private pla cement of 3,000,000 flow through units
priced at $0.18 per unit for gross proceeds of $540 ,000. Each unit will comprise one flow
through share, and one half of one non-flow through common share purchase warrant.
Each whole warrant will be exercisable into one com mon share of the Company at an
exercise price of $0.24 for a period of two years f ollowing closing. The common share
purchase warrants will be subject to acceleration a t the Company’s discretion in the event
its common shares trade on the TSX Venture Exchange on a volume weighted average price
(“VWAP”) basis of C$0.40 or more for a period of ten consecutive trading days. Proceeds of
this offering will be utilized on the Company’s Per k Rocky copper-gold porphyry project in
British Columbia or on eligible flow through expend itures on other British Columbia
projects.
Members of the new technical advisory group are exp ected to participate in certain of the Private
Placements. Finder’s fees may be paid on a portion of the Private Placements. The Private
Placements are subject to the approval of the TSX V enture Exchange and customary closing
conditions.
Qualified Person
The technical content disclosed in this press relea se was reviewed and approved by Jo Price, P.Geo., M.Sc.,
VP Exploration of Ethos and a Qualified Person as defined under National Instrument 43-101 (“ NI 43-101 ”).
Contact
For additional information please contact Tom Marti n at E: [email protected] P: 1-250-516-
2455 or view the Company’s website, www.ethosgold.com .and the Company’s sedar profile at
www.sedar.com .
Ethos Gold Corp.
Per: " Craig Roberts "
Craig Roberts, P.Eng., President & CEO
Forward-Looking Statement Cautions:
This press release contains certain "forward-looking statements" within the meaning of Canadian securities legislation,
including, but not limited to, statements regarding the Company’s plans with respect to the Company’s projects and
the timing related thereto, the merits of the Compa ny’s projects, the Company’s objectives, plans and strategies, the
Private Placements, and other project opportunities . Although the Company believes that such statement s are
reasonable, it can give no assurance that such expe ctations will prove to be correct. Forward-looking statements are
statements that are not historical facts; they are generally, but not always, identified by the words "expects," "plans,"
"anticipates," "believes," "intends," "estimates," "projects," "aims," "potential," "goal," "objective ,", “strategy”,
"prospective," and similar expressions, or that eve nts or conditions "will," "would," "may," "can," "c ould" or "should"
occur, or are those statements, which, by their nat ure, refer to future events. The Company cautions t hat Forward-
looking statements are based on the beliefs, estima tes and opinions of the Company's management on the date the
statements are made and they involve a number of ri sks and uncertainties. Consequently, there can be n o assurances
that such statements will prove to be accurate and actual results and future events could differ mater ially from those
anticipated in such statements. Except to the exten t required by applicable securities laws and the po licies of the TSX
Venture Exchange, the Company undertakes no obligat ion to update these forward-looking statements if
management's beliefs, estimates or opinions, or other factors, should change. Factors that could cause future results to
differ materially from those anticipated in these f orward-looking statements include the risk of accid ents and other
risks associated with mineral exploration operations, the risk that the Company will encounter unanticipated geological
factors, or the possibility that the Company may no t be able to secure permitting and other agency or governmental
clearances, necessary to carry out the Company's ex ploration plans, risks and uncertainties related to the COVID-19
pandemic, risks and uncertainties related to the Co mpany’s ability to complete the Private Placements and the size of
the Private Placements, and the risk of political uncertainties and regulatory or legal changes in the jurisdictions where
the Company carries on its business that might inte rfere with the Company's business and prospects. Th e reader is
urged to refer to the Company's reports, publicly a vailable through the Canadian Securities Administrators' System for
Electronic Document Analysis and Retrieval (SEDAR) at www.sedar.com for a more complete discussion of such risk
factors and their potential effects.
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.
ADDENDUM
Advisory Team
Rob Carpenter Ph.D., P.Geo., Chief Technical Advisor
Rob Carpenter is a Professional Geoscientist (P.Geo.) with more than 30 plus years of corporate and
technical mineral exploration experience. He has founded and played key roles in several successful
junior mining companies including Kaminak Gold Corp oration. He led the Kaminak team as CEO
from inception in 2005 through acquisition, discove ry and maiden resource calculation of the
multi- million ounce Coffee Gold Project, Yukon. Ka minak was acquired by Goldcorp in 2016 for
over $500 million. In 2014, the Association of Min ing and Exploration for British Columbia
(AMEBC) awarded him and his team the Huestis Award for Excellence in Mineral Exploration for the
discoveries at Coffee. AMEBC also awarded him the R obert Hedley Award for Social and
Environmental Leadership in 2009 for his role in developing industry-Inuit partnerships in Uranium
exploration. Rob completed his Ph.D. in 2004 at the University of Western Ontario focused on the
setting and controls on the Meliadine Gold Camp in Nunavut. He is currently an Adjunct Professor
at Western and is involved in helping a number of g raduate thesis aimed at understanding gold
deposits.
Robert A. Brozdowski, Ph.D., P. Geo.
Over 30 years diverse exploration experience emphas izing magmatic Ni-Cu-PGE & gold, but
including uranium, VMS, SEDEX, and IOCG deposits. W orked with Callahan Mining Corp. from
1983-91 and subsequently with Western Mining Corporation (later WMC) across Canada & the USA
from 1992-98. Consulting exploration geologist since 1998, involved in regional project generation,
integrated regional field programs, and property-sc ale exploration projects for major, junior, and
private clients in North & South America, Asia and Europe. Ph.D. Geology (Western University,
London, ON, 1990), M.A. Geology (Temple University, Philadelphia, PA, 1983), and B.S. Geosciences
(Pennsylvania State Univ., 1980).
Daniel MacNeil, M.Sc., P.Geo.
Economic Geologist specializing in Precious and Base Metals with over 19 years of experience from
Continental scale project generation to in-mine resource expansion in a wide variety of geological
settings in the Americas, Europe, Eastern Europe and the Near East. His expertise includes
opportunity identification, business development, project evaluation, target and exploration
strategy, district entry strategy, strategic evaluation of geologic terranes and execution of target
testing. Mr. MacNeil has worked for numerous mining and exploration focused companies
including Anglo American (3 years) and Barrick Gold Corp. (7 years) where he played a key role in
the addition of 400K Oz gold and 30Moz silver to Eskay Creek Mine (Northwest British Columbia,