Prospector Options Schefferville Gold Project, QC Fully Funded 3,500m Drill Program to Begin in the Fall of 2022
Suite 1430 – 800 West Pender Street, Vancouver, BC V6C 2V6
Prospector Options Schefferville Gold Project, QC
Fully Funded 3,500m Drill Program to Begin in the Fall of 2022
Vancouver, BC – August 17, 2022 , Prospector Metals Corp. (“Prospector” or the “ Company”)
(TSXV: PPP; OTCQB: ETHOF; Frankfurt: 1ET) is pleased to announce that it has executed a property
option agreement with Newfoundland Discovery Corp. (“NEWD”) in which NEWD may earn a 50%
interest in the Schefferville Gold Project project in return for staged share payments to Prospector and
$4M of work commitments by December 31, 2025, including $1.3 M by the end of 2022, and a 100%
interest by issuing 19.9% of its shares to Prospector and completing total of $7.5M of work
commitments by the end of 2026.
Schefferville Gold Project Highlights:
• Project wide, approximately 53 gold occurrences grading from 1 g/t Au up to 171.5 g/t Au in
mineralized iron formations have been documented historically (Figure 1). Only three of these
53 prospect areas have been historically drill -tested. A total of 27 short holes on these
prospects yielded results including 2.23 g/t Au over 19.55 m, 10.21 g/t over 2.03 m and 1.05
g/t Au over 12.55 m.
• Phase 1, 2022 exploration program was completed by Prospector in Jul y from a newly built
exploration camp. The exploration program was comprised of a detailed high-resolution
helicopter aeromagnetic survey over the central portion of the Sable claim block followed by
mapping, stripping and channel sampling at Arsene, Baleine Rouge, and Wolf, as well as
prospecting and ground truthing of additional high-priority targets. Assays for Phase 1 remain
pending and together with the new airborne magnetic data will help delineate drill targets for
Phase 2.
• Priority targets identified in the Phase 1 exploration program are to be drilled (up to 3,500m)
during the Phase 2 program in the fall of 2022, with NEWD committing a minimum of $1.3M to
this program.
• Prospector will be the operator and undertake all exploration and development programs on
the Schefferville Gold Project and is entitled to a 5% management fee on all expenditures
incurred on the property.
Alex Heath, President & CEO of Prospector, stated: “I am pleased to be announcing this property
option agreement with NEWD that will see our Schefferville Gold P roject drill tested this year. The
Schefferville Gold Project covers a 20km by 70km region with numerous high- grade gold in rock
samples and over fifty surface gold prospects. We look forward to working with NEWD and advancing
this truly district scale opportunity.”
Phase 2 Exploration Program
Phase 2 is anticipated to start in September 2022 and comprises approximately 3,500m of diamond
drilling testing multiple high-priority targets delineated in the Phase 1 exploration program. Operations
will be based out of the new exploration camp.
Terms of the Agreement
NEWD may earn up to a 100% interest in the Schefferville Gold property, with two option milestones,
in return for the following work commitments and share payments to Prospector:
First Option – initial 50% interest
Shares of NEWD Work Commitment
On signing 200,000
December 31, 2022 $1,300,000
August 10, 2023 1,000,000
August 10, 2024 1,000,000
August 10, 2025 1,000,000
December 31, 2025 9.9% of the fully diluted shares of NEWD (less
shares already issued)
$2,700,000
Second Option – 100% interest
December 31, 2026 19.9% of the fully diluted shares of NEWD (less
shares already issued)
$3,500,000
Schefferville Gold Project Overview
The Schefferville Gold Project is centered on a structural corridor characterized by faulted and sheared
iron formation stratigraphy extending for approximately 60 km on the Sable block, and 10 km on the
Hamard block. The project was acquired through staking (see Company’s news release dated August
20, 2020) and three subsequent acquisition transactions (see news releases dated September 4, 2020;
and October 15, 2020; and this release).
The Sable and Hamard claims cover extensive areas of the Lilois Complex, a 2.7 billion-year-old rock
unit characterized 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)
corridor along the Quebec – Labrador border. In 1985, a Quebec Ministry field team discovered the
Lac du Canoe gold occurrence with sample results 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 40
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 structures that were pathways for hydrothermal fluids during
deformation and metamorphism. This resulted in suphidization of the iron formations, with attendant
gold and arsenopyrite mineralization, along and adjacent to these structures. Additionally, significant
mineralization may extend into the bounding paragneisses, and also may be controlled by structures
adjacent to contacts of paragneiss and iron formation with various intrusive bodies.
Figure 1. Prospects on the Sable Block; Magnetics and Geology within the Schefferville Project
1 Historical assay values have not been independently verified by the Company and a potential investor should not place
undue reliance on historical results when making an investment decision, nor should they be used as the sole criterion for
making investment decisions. There is no assurance that the Company can reproduce such results or that the historical
results described therein will be realized.
2 “Best surface samples” are grab / select samples and not necessarily representative of mineralization hosted on the property.
3 The potential quantity and grade is conceptual in nature and there has been insufficient exploration to define a mineral
resource and that it is uncertain if further exploration will result in the target being delineated as a mineral resource.
QA/QC Procedures
All channel and rock samples were sent to MSA Labs and ALS Canada Ltd. (ALS) in Val d’Or, Quebec
for preparation and analysis. MSA and ALS meet all requirements of International Standards ISO/IEC
17025:2005 and ISO 9001:2015 for analytical procedures. At ALS, samples are being analysed using
Fire Assay and AAS, 30g method (Au -AA-25) and by a 48-element four acid digest ICP-MS analysis
(ME-ICP61). At MSA, samples are being analysed by Au Chrysos PhotonAssay TM. In addition, MSA
and ALS Laboratories follow quality assurance / quality control (QA/QC) protocols.
Qualified Person
The technical content disclosed in this press release was reviewed and approved by Jo Price, P.Geo.,
M.Sc., MBA, VP Exploration of Prospector, and Réjean Girard, P. Geo., Project Lead at IOS Services
Géoscientifiques Inc., Qualified Persons as defined under National Instrument NI 43-101 (“NI 43-101”).
About Prospector Metals Corp.
Prospector Metals Corp. is a Discovery Group Company with a business model focussed on district
scale, early-stage exploration of gold and base metal prospects and create shareholder value through
new discoveries. The Company’s focus is to identify underexplored or overlooked mineral districts
which display important structural and mineralogical similarities with well-endowed mining camps. The
majority of the projects acquired by Prospector occur in Ontario, Canada, which is a tier -1 mining
jurisdiction with abundant overlooked geological regions with high mineral potential. Prospector
engages proactively with local and Indigenous rightsholders and seeks to develop relationships and
agreements that are mutually beneficial to all stakeholders.
On behalf of the Board of Directors,
Prospector Metals Corp.
Alex Heath, CFA
President & CEO
For further information about Prospector Metals Corp. or this news release, please visit our website at
prospectormetalscorp.com or contact Alex Heath at 604-354-2491 or by email at
Prospector Metals Corp. is a proud member of Discovery Group. For more information please visit:
discoverygroup.ca
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, including, but not limited to, the earning- in of NEWD in the Scheffer ville
Gold Project and the plans and timing of the Phase 2 Exploration Program at the Schefferville Gold Project , the
merits of the Company’s projects, the Company’s objectives, plans and strategies, and other project
opportunities. Although the Company believes that such statements are reasonable, it can give no assurance
that such expectations 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 events or conditions “will,” “would,” “may,” “can,” “could” or “should” occur, or are those
statements, which, by their nature, refer to future events. The Company cautions that forward-looking statements
are based on the beliefs, estimates and opinions of the Company’s management on the date the statements are
made and they involve a number of risks and uncertainties. Consequently, there 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 statements. Except to the extent required by applicable securities laws and the policies of the
TSX Venture Exchange, the Company undertakes no obligation 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 forward-looking statements include the risk of accidents
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 not be able to secure permitting and
other agency or governmental clearances, necessary to carry out the Company’s exploration plans, risks and
uncertainties related to the COVID -19 pandemic and t he risk of political uncertainties and regulatory or legal
changes in the jurisdictions where the Company carries on its business that might interfere with the Company’s
business and prospects. The reader is urged to refer to the Company’s reports, publicl y available 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.