Ethos Options Fuchsite Lake Gold Project to Cross River Ventures Corp.
Suite 1430 – 800 West Pender Street, Vancouver, BC V6C 2V6
Ethos Options Fuchsite Lake Gold Project
to Cross River Ventures Corp.
Vancouver, BC – September 8 th , 2020, Ethos Gold Corp. (“ Ethos ” or the “ Company ”) (TSXV:ECC )
(OTCQB: ETHOF ) is pleased to announce that it has entered a definitive property option agreement
(the “ Option Agreement ”) with Cross River Ventures Corp. (“ Cross River ”) (CSE: CRVC) pursuant to
which the parties intend to cooperate in the develo pment of the Fuchsite Lake Gold Project (the
“Project ”) . The Fuchsite Lake project comprises approximatel y 3,750 hectares 20 km north of the
town of Armstrong, Ontario. The Option Agreement is subject to acceptance by th e TSX Venture
Exchange and the Canadian Stock Exchange.
The work programs for Fuchsite will be managed by t he Ethos technical team, led by Dr. Rob
Carpenter, Chief Technical Advisor to Ethos, and Jo Price, Vice President of Exploration for Ethos.
The team includes Dr. Rob Brozdowski, P.Geo., Dan M acNeil, M.Sc., P.Geo., and Dr. Al Wainwright,
P.Geo. (see Ethos August 5, 2020 news release). Thi s 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. Work at Fuchsite Lake will start
shortly with a high resolution an airborne magnetic survey scheduled to be completed by October
2020.
Stated Dr. Carpenter: “The Fuchsite Lake claims rep resent a new greenfield fault zone gold target
that has been overlooked and under-explored despite reasonable access and favourable rock types
and alteration that commonly accompany large gold d iscoveries. We look forward to partnering
with Cross River and to starting our work on the project in the next several weeks”
Stated John Fraser, President & CEO of Cross River: “We’re very pleased to work with Ethos. The
track record of their technical team is obviously i mpressive, and their involvement and
endorsement of the project was a critical factor in Cross River’s decision to enter the earn-in
agreement. We feel this project represents an outs tanding opportunity at discovery and we’re
eager to move forward.”
Agreement Terms
Under the terms of the Option Agreement, Cross Rive r has been granted the right to acquire up to
a 60% interest in the Project from Ethos in conside ration for completing a series of cash payments
totaling $300,000, issuing a total of 2,000,000 common shares (the “ Option Shares ”), and incurring
expenditures on the Project of at least $2,000,000. To maintain the Option Agreement in good
standing, Cross River is required to make the cash payments, issue the Option Shares, and incur
the expenditures, in accordance with the following schedule:
Deadline Cash Payments Option Shares Expenditures
Initial Nil 500,000 Nil
December 31, 2020 Nil Nil $100,000
Year 1 $75,000 500,000 Nil
December 31, 2021 Nil Nil $350,000
Year 2 $75,000 500,000 Nil
December 31, 2022 Nil Nil $750,000
Year 3 $75,000 500,000 Nil
December 31, 2023 Nil Nil $750,000
Year 4 $75,000 Nil Nil
Total $300,000 2,000,000 $2,000,000
Following completion of the required cash payments, issuance of the Option Shares and
satisfaction of the expenditures, Cross River will hold a 60% interest in the Project, subject a 2%
net smelter return royalty in favour of Ethos. One -half of the royalty can be acquired by Cross
River for a one-time cash payment of $1,000,000.
About the Fuchsite Gold Project
The Fuchsite Lake project comprises approximately 3 ,750 hectares 20 km north of the town of
Armstrong, Ontario (see Figure 1).
The 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 five short drill holes (all less than 40 m 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 ava ilable. The Ontario government sampled this
outcropping zone (OGS Report 251) and obtained 1.7 g/t Au and 1.4 g/t Au from two separate
samples. No follow up work has been recorded in nearly 30 years.
The presence of anomalous gold in outcrop samples w ithin 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 the shear zone model followed by an airborne magnetic survey designed
to map out the structural geometry at the property scale.
Figure 1: Fuchsite Lake Project
Qualified Person
The technical content disclosed in this press release was reviewed and approved by Jo Price, P .Geo.,
M.Sc., VP Exploration of Ethos, and a Qualified Per son as defined under National Instrument NI 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-lookin g statements" within the meaning of Canadian securi ties legislation,
including, but not limited to, statements regarding the Company’s plans with respect to the Company’s projects and
the timing related thereto. Although the Company be lieves that such statements are reasonable, it can give no
assurance that such expectations will prove to be c orrect. Forward-looking statements are statements t hat are not
historical facts; they are generally, but not always, identified by the words "expects," "plans," "ant icipates," "believes,"
"intends," "estimates," "projects," "aims," "potent ial," "goal," "objective," "prospective," and simil ar expressions, or
that events or conditions "will," "would," "may," " can," "could" or "should" occur, or are those state ments, which, by
their nature, refer to future events. The Company c autions that Forward-looking statements are based o n the beliefs,
estimates and opinions of the Company's management on the date the statements are made and they involv e a
number of risks and uncertainties. Consequently, th ere can be no assurances that such statements will prove to be
accurate and actual results and future events could differ materially from those anticipated in such s tatements. Except
to the extent required by applicable securities law s and the policies of the TSX Venture Exchange, the Company
undertakes no obligation to update these forward-lo oking statements if management's beliefs, estimates or opinions,
or other factors, should change. Factors that could cause future results to differ materially from tho se anticipated in
these forward-looking statements include the risk o f accidents and other risks associated with mineral exploration
operations, the risk that the Company will encounte r unanticipated geological factors, or the possibil ity that the
Company may not be able to secure permitting and ot her agency or governmental clearances, necessary to carry out
the Company's exploration plans, risks and uncertai nties related to the COVID-19 pandemic, and the risk of political
uncertainties and regulatory or legal changes in th e jurisdictions where the Company carries on its bu siness that might
interfere with the Company's business and prospects . The reader is urged to refer to the Company's rep orts, publicly
available through the Canadian Securities Administr ators' 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.