Precipitate Acquires 100% Interest in Gold and Silver Property Adjoining Barrick and Goldcorp’s Pueblo Viejo Mine in Dominican Republic
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Precipitate Acquires 100% Interest in Gold and Silver Property
Adjoining Barrick and Goldcorp’s Pueblo Viejo Mine in Dominican
Republic
Vancouver, B.C. – October 24, 2018 - Precipitate Gold Corp. (the “Company” or “Precipitate”) (TSXV: PRG)
is pleased to announce it has entered into a purcha se-sale agreement with Everton Resources Inc.
(“Everton”) (TSX.V: EVR) whereby, subject to closin g, Precipitate will acquire a 100% interest in thre e of
Everton’s Dominican Republic exploration concession s, including two highly prospective concessions (th e
“Pueblo Grande Property ”), adjoining Barrick’s and Goldcorp’s world-class Pueblo Viejo gold-silver mine ,
one of the largest gold mining operations in the world.
Highlights of New Property Acquisition:
o 100% interest in a strategic land position adjoining Barrick’s Pueblo Viejo mine (largest active gold
mining operation in Latin America; fourth largest gold mining operation in the world*)
o Two historical drill zones (Tres Bocas and La Lechoza) with impressive near s urface gold and silver
intercepts warranting follow-up;
o Substantial areas of under-explored Advanced Argillic alteration adjacent to, and on strike from
the Pueblo Viejo open pits;
o Extensive drill dataset from over 200 historic drill holes totalling approximately 29,500 metres ;
o Situated in an active and mining-friendly district within 10 kilometers (“km”) of 3 operating mine
sites ;
o Select highlight historic trench samples (from La Lechoza zone):
o 11.3 grams per tonne (‘g/t’) gold and 310 g/t silver over 18 metres (Linear Gold, 2015)
o 6.65 g/t gold and 18.8 g/t silver over 22 metres ; including 22.1 g/t gold and 48.6 g/t silver
over 4 metres
o 1.13 g/t gold over 18 metres
o 4.35 g/t gold over 10 metres
o Select reported historical highlight drill intercepts include:
Metres
(m)
Gold
(g/t)
Silver
(g/t)
Zinc
(%)
Zone Everton News Source
23.4 m 4.76 23.0 La Lechoza Jan 27/11 (DDH APV -30)
10.6 m 2.96 104.9 9.4 Tres Bocas May 17/06 (DDH TBM -07)
27.0 m 2.46 26.7 La Lechoza Feb 02/11 (DDH APV11 -02)
7.5 m 2. 56 47.2 4.4 La Lechoza Dec 20/10 (DDH APV10 -13)
10.5 m 2.29 65.0 3.4 La Lechoza Apr 13/11 (DDH APV11 -30)
TSX VENTURE: PRG | www.precipitategold.com
625 Howe Street, Suite 1020, Vancouver, BC, V6C 2T6
Toll free: 855 558 0335
Direct: 604 558 0335
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All above noted intercepts commence at less than 20 m drill depth and are drill intercept widths. The true
thickness of the zones has yet to be determined.
Map View of All New Acquired Concessions Map View of Pueblo Grande Property
Jeffrey Wilson, Precipitate President & CEO, stated , "We are pleased with this new acquisition as it
positions Precipitate with an impressive new landho lding flush with targets adjacent to one of the lar gest
gold-silver mining operations in the world, in the heart of the Dominican Republic’s most active and
mining-friendly district. This acquisition represents much more than an “area play” for the Company, as the
project’s geological environment, compelling geophysical signatures and impressive prior results make this
an exciting new addition to our project portfolio. Applying our in-country experience and technical
expertise, which includes highly- regarded Board me mbers Quinton Hennigh, Alistair Waddell and Adrian
Fleming, should allow Precipitate to reinterpret th e data and commence systematic programs to test
previously unrecognized opportunities within this p roperty package. Our team’s ongoing interaction and
dialogue with the country’s decision-makers and ind ustry peers has reinforced our confidence in the
outlook for the jurisdiction, such that we believe this acquisition presents a unique and timely opportunity
for the Company and its shareholders to be position ed for long-term growth. Pueblo Grande and our
existing Juan de Herrera Project, adjacent to GoldQuest Mining’s Romero, combine to establish Precipitate
as one of the Dominican Republic’s leading explorer s, poised to build near and long-term value through
strategic district-scale landholdings and ongoing work programs.” See full CEO Summary video of this news
release at the Company’s website.
Michael Moore, Precipitate VP Exploration, states, "The Pueblo Grande property offers near-term
discovery potential immediately adjacent to Barrick ’s Pueblo Viejo Mine, one of the world’s biggest go ld
and silver operations. The sizeable historical property dataset gives us an excellent starting point to benefit
from past work and to immediately focus on priority gold and base metal prospects identified through
geophysics, geology, geochemistry and past drill intercepts with limited follow-up. Our exploration plan will
focus on high priority zones for immediate field wo rk and drill target testing. The target-rich projec t has
year-round access and well-developed infrastructure , allowing for consistent, systematic programs and
steady future news flow.”
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Two concessions, comprising a portion of the Pueblo Grande Property, are contiguous to the Pueblo Viej o
mine operated by Barrick Gold via a joint venture b etween Barrick (60%) and Goldcorp (40%). The third
concession (the “ Ponton Project ”) acquired in this transaction is located approxim ately 30 km east of
Pueblo Grande in a similarly favourable and prospec tive geological environment. The Company has also
submitted exploration concession applications for an additional strategic land position connecting the two
main Everton concessions along the eastern boundary of the Pueblo Viejo mine to form the newly
consolidated Pueblo Grande Property . As a result, Precipitate’s new land position adjo ins Barrick’s Pueblo
Viejo mine site on the west, north and east sides, covering about 9,863 contiguous hectares. See the
accompanying maps or the Company’s website at www.precipitategold.com for the property location
illustration maps.
Highlights of Pueblo Grande Exploration Potential:
The area to the west of the Pueblo Viejo mine is in terpreted to be a high-level advanced argillic lith ocap
alteration type environment which lacks significant known gold-silver mineralization but has the same
highly anomalous trace element suite that typifies the adjacent Pueblo Viejo deposit. The lithocap
alteration is dominated by pervasive silica-pyrophy llite-pyrite with numerous and widespread irregular
pods, veins, and veinlets of massive hematitized magnetite. Magnetite, silicification and various pathfinder
elements associated with Pueblo Viejo style high sulphidation epithermal gold-silver-copper mineralization
offer key exploration vectors into and through the extensive altered lithocap zone (see aster image and
airborne magnetics geophysical map ). Past drill testing appears to have focused mainl y on coincident
geochemical and induced polarization chargeability anomalies on the eastern extents of the lithocap,
largely overlooking the sizable magnetic-high anomalies within the central lithocap region, leaving much of
this target area untested. The prospective lithocap alteration within Precipitate’s concession boundar ies,
west and northwest from the Pueblo Viejo mine pits, measures roughly 5 km by 3 km, with the coincidental
prospective magnetic-high anomaly measuring approxi mately 2.5 km by 3 km, representing a sizable and
highly prospective yet essentially untested target for initial work programs and possible near-term dr ill
testing.
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Additional magnetic anomalies (both high and low si gnatures) within the property package, specifically to
the southeast of Pueblo Viejo, will undergo future geological mapping and sampling. Previous drilling has
also encountered at least two additional key areas of mineralization within the property (namely La
Lechoza and Tres Bocas) evidencing the project’s po tential to host multiple areas of interest and seve ral
styles of mineralization. The size and scale of the property package, combined with its proximity to o ne of
the largest gold mining operations in the world, ma ke this a compelling project for extensive and ongo ing
exploration.
Highlights of Acquired Pueblo Grande Dataset:
In acquiring the Pueblo Grande Property (previously named the Ampliacion Pueblo Viejo (APV), Mermejal,
Jobo Claro, Loma Mate and others) and the nearby Ponton Property from Everton, the Company acquires
valuable associated datasets that include:
o Two high-level historically drilled gold-base metal discovery zones: Tres Bocas and La Lechoza;
o Drill hole database, including 158 diamond drill holes and 62 shallow RAB drill holes ; totalling
about 29,500 metres and 10,600 core – rock pulp samples;
o Heliborne magnetic-GeoTEM geophysical survey (729km of flight lines at 100 metre spacing);
o Numerous ground geophysical surveys, including magnetics, induced polarization and max-min EM;
o Approximately 18,050 surface geochemical samples (combined stream sediment, rock, soil,
trench);
o Extensive surface geological mapping at various detail levels; and,
o A large highly prospective lithocap area of Advance d Argillic alteration located directly to the west
of the Pueblo Viejo mine.
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Highlights of Barrick’s Pueblo Viejo Gold-Silver Mine:
o Largest active gold mining operation in Latin America, and fourth largest mining operation in the
world in 2017 *
o High sulphidation epithermal gold-silver deposit
o 13.4 million ounces (“Moz”) gold , 74.4 Moz silver , and 298.5 million pounds copper (measured
and indicated mineral resource from 169.5 million t ons grading 2.46 g/t gold, 13.66 g/t silver and
0.08% copper )**;
o Additional 3.6 Moz gold , 16.0 Moz silver , and 87.2 million pounds copper in the inferred category;
o Annual production of approximately 1.0 million ounces gold at US $525.00 all-in-sustai ning cost
per ounce ***; and,
o US $4.3 billion project infrastructure investment
*Based on 2017 production figures -Thomson Reuters and stats released by gold miners. **March 2018, NI
43-101 report. ***Based on annual 2017 production, Barrick website.
Pueblo Grande Purchase-Sale Agreement Terms:
As consideration for 100% title to Everton’s three Dominican exploration concessions totalling 9,583
hectares, and extensive geochemical, geophysical, g eological and drill data, Precipitate will deliver to
Everton the following upon closing:
o CDN $25,000 cash;
o Seven million common shares of Precipitate subject to resale legend restrictions for up to 3 years,
expiring as follows:
• 10% (700,000 shares) with resale legend expiring 6 months from the date of issue;
• 10% (700,000 shares) with resale legend expiring 12 months from the date of issue;
• 10% (700,000 shares) with resale legend expiring 18 months from the date of issue;
• 15% (1,050,000 shares) with resale legend expiring 24 months from the date of issue;
• 15% (1,050,000 shares) with resale legend expiring 30 months from the date of issue; and
• 40% (2,800,000 shares) with resale legend expiring 36 months from the date of issue
The closing date for the transaction will occur at five business days after the later of (i) the date the TSX
Venture exchange accepts the transaction, and (ii) the date the Dominican Republic Ministry of Energy and
Mines accepts and completes full legal title transf er of the three exploration concessions to Precipit ate.
The agreement is subject to a 45-day due diligence period, from the date of execution of the agreement ,
whereby Precipitate can complete a satisfactory review of project technical and corporate documents an d
related materials. The Company has 90 days to facil itate completion of the official transfer of legal title of
the concessions, after which the Company can elect to extend the closing date by consecutive 30-day
periods by delivering 100,000 common shares of the Company (deducted from the payment shares noted
above) for each 30-day extension. If the Closing does not occur by March 30, 2019 either party may elect to
terminate the agreement.
Additional payment stock conditions include (i) sho uld Everton elect to sell or dispose of any of the
payment shares, and in each instance, it will give Precipitate at least 10 business days advance notice, so as
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to allow the Company to assist in finding a purchas er for such shares and (ii) the selective legend re moval
of various escrow payment share release restriction s should the Company’s common shares trade at or
above $0.20, $0.40 and $0.60 per common share for 1 0 consecutive trading days on the TSXV (based on a
volume weighted average price, “VWAP”). Pre-existin g advanced stage or mining-related commitments to
a third party include (i) a sliding scale net smelt er royalty (NSR) ranging from 1%, where gold is und er $US
1,000/oz, to 2%, where gold is over $US1,400/oz and (ii) a sum of cash or shares in the event a resour ce of
1.0 million gold equivalent ounces or greater are d elineated at certain grades and in various indicate d and
inferred categories.
Expanding the Precipitate Gold Project Portfolio:
The acquisition of Pueblo Grande compliments the Company’s existing Juan de Herrera Project situated in
the western part of the Dominican Republic, adjacent to the country’s most prominent development-stage
project, GoldQuest Mining’s Romero, establishing th e Company with substantial landholdings in the
country’s two most significant gold and copper camps. Importantly, Precipitate’s complete project portfolio
now provides shareholders valuable exposure to thre e major mining/exploration gold camps with
landholdings immediately adjacent to, and contiguou s with three prominent operations; the world-class
Pueblo Viejo operated by Barrick (central Dominican Republic), the Tireo-Romero operated by GoldQuest
(west Dominican Republic), and the Upper Hyland River-3 Aces operated by Golden Predator (southeast
Yukon, Canada). All of these Precipitate gold asset s are owned 100% by the Company, free of any
underlying vendor payments or work commitments, and limited holding costs.
This news release has been reviewed by Michael Moor e P. Geo., Vice President, Exploration of Precipita te
Gold Corporation, the Qualified Person for the tech nical information in this news release under NI 43- 101
standards.
About Precipitate Gold:
Precipitate Gold Corp. is a mineral exploration com pany focused on exploring and advancing its mineral
property interests in the Tireo Gold Trend and Pueblo Viejo Camp of the Dominican Republic. The Company
also maintains assets in southeast Yukon Territory, specifically the Company’s Reef property located
immediately adjacent to Golden Predator’s 3 Aces Pr oject in the Upper Hyland River area. The Company
has entered into an Option to Purchase Agreement wi th Golden Predator whereby Golden Predator can
earn a 100% interest in the Reef claims by making c ertain staged payments in cash and shares and
warrants. Precipitate is also actively evaluating a dditional high-impact property acquisitions with th e
potential to expand the Company's portfolio and increase shareholder value.
Additional information can be viewed at the Company’s website www.precipitategold.com .
On Behalf of the Board of Directors of Precipitate Gold Corp.,
“Jeffrey Wilson”
President & CEO
For further information, please contact:
Tel: 604-558-0335 Toll Free: 855-558-0335 [email protected]
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Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies
of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This press release may contain "forward-looking information" within the meaning of applicable Canadian securities legislation. All statements, other
than statements of historical fact, included herein are forward looking information. Generally, forward-looking information may be identified by the
use of forward-looking terminology such as "plans", "expects" or "does not expect", "proposed", "is ex pected", "budget", "scheduled", "estimates",
"forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such w ords and phrases, or by the use of words or
phrases which state that certain actions, events or results may, could, would, or might occur or be ac hieved. This forward-looking information
reflects Precipitate Gold Corp.’s (“Precipitate” or the “Company”) current beliefs and is based on information currently available to Company and on
assumptions it believes are reasonable. Forward-loo king information is subject to known and unknown ri sks, uncertainties and other factors that
may cause the actual results, level of activity, performance or achievements of Precipitate to be materially different from those expressed or implied
by such forward-looking information. Such risks and other factors may include, but are not limited to: the exploration concessions may not be
granted on terms acceptable to the Company, or at a ll; general business, economic, competitive, political and social uncertainties; the concessions
acquired by the Company may not have attributes similar to those of surrounding properties; delay or failure to receive governmental or regulatory
approvals; changes in legislation, including enviro nmental legislation affecting mining; timing and av ailability of external financing on acceptable
terms; conclusions of economic evaluations; and lac k of qualified, skilled labour or loss of key indiv iduals. Although Precipitate has attempted to
identify important factors that could cause actual results to differ materially from those contained i n forward-looking information, there may be
other factors that cause results not to be as antic ipated, estimated or intended. Accordingly, readers should not place undue reliance on forward-
looking information. Precipitate does not undertake to update any forward-looking information, except in accordance with applicable securities
laws.