Precipitate Signs Option to Acquire 100% of High Grade Zinc Property in British Columbia
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Precipitate Signs Option to Acquire 100% of High Grade Zinc Property
in British Columbia
Vancouver, B.C. – April 18, 2017 - Precipitate Gold Corp. (the “Company” or “Precipita te”) (TSXV: PRG) is
pleased to announce the Company has reached an opti on agreement whereby Precipitate can acquire a
100% interest in the Island Zinc zinc-lead-silver pr oject located near Port Hardy, north Vancouver Isl and,
British Columbia.
Island Zinc Project Highlights:
The Island Zinc project is a high grade zinc-lead-si lver carbonate replacement target hosting historica l
workings (including a collapsed inclined adit and two shallow shafts) centered on surface exposures of large
and lengthy bands of sphalerite-galena mineralizati on. Work by previous operators includes sampling,
mapping, trenching, surface blasting, geophysics, s hallow depth diamond drilling and small scale sub-
surface mining. Select highlight results reported b y prior operators and recent Precipitate rock sampl es
include:
- Select rock grab samples assay up to 12.3% zinc, 9.4% lead and 932 g/t silver (Precipitate 2017) *
- Rock chip channel sample: 2.1 metres @ 3.9% zinc, 2.5% lead and 744 g/t silver (1989)
- Drill hole NL66-19: 8.8 metres @ 5.6% zinc, 2.8% lead and 178 g/t silver from 13.4m depth
- Drill hole NL66-20: 5.5 metres @ 7.3% zinc, 6.9% lead and 370 g/t silver from 17.4m depth*
The Project is located in northern Vancouver Island British Columbia, approximately 20 kilometres west of
the Pacific Ocean port community of Port Hardy. Acc ess to the property is via a high quality, all seas on
gravel road and a number of subsidiary access roads which have facilitated of a few generations of logging.
The reclaimed Island Copper Porphyry deposit mine site is 25 kilometres to the southeast.
Jeffrey Wilson, Company President & CEO states, “As we ramp up activities at our flagship asset in the
Dominican Republic, we’re pleased with the opportun ity to complement our project portfolio with a new
acquisition. The right to acquire 100% of the Islan d Zinc property expands our project portfolio with a
prospective new high grade base metal project in an other jurisdiction with year-round exploration acce ss,
simple and inexpensive logistics and favourable min ing and taxation policies. This, combined with the
agreement’s manageable acquisition terms, allows Pr ecipitate the opportunity to efficiently advance th e
Island Zinc project to a drill decision stage. Manag ement believes this acquisition represents another
example of our commitment to grow the Company throu gh project opportunities that can add and
maximize shareholder value.”
Historical project records note widespread replacem ent style mineralization showings within the host
exploration target limestone over a strike distance of 800 metres (“m”), representing only a portion o f the
estimated 3,000m of mapped host limestone bisecting the property. Most prior work focused on the
impressive surface showings of massive (up to 2 met res wide) banded sphalerite and galena at the Main
historical showing. However there is unexplored potential, particularly along strike (east to west) and down
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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dip (to the south) where prospective mineralization may be masked by either glacial till or relatively thin
layers of overlying volcanic rocks. These periphera l areas have never been explored by modern methods.
See the maps below or the Company’s website for the additional information.
Precipitate’s initial priority is to complete a det ailed geophysical gravity survey over much of the p roperty
to identify any potential large and dense sphalerit e-galena mineral bodies within the host limestone r ocks
near, distal, or down dip from known mineral surfac e occurrences. Selective ground geophysical magneti c
surveying will follow the gravity work as a means t o identify drill worthy targets with combined non-
magnetic and gravity positive signature. Results o f this work will be reported on as it is completed and
interpreted.
Option Agreement Terms:
Precipitate has an option to earn a 100% interest i n the Property, comprising seven mineral tenures (6 75
hectares), by completing staged payments of cash an d shares totalling $95,000, 250,000 Precipitate
common shares and incurring an aggregate of $275,00 0 of work expenditures on the Property over a four
year term, as follows:
Cash payment
Shares issued
Work Commitment
On signing agreement $10,000 Nil Nil paid
At or before first signing anniversary $15,000 25,0 00 $50,000
At or before second anniversary $20,000 50,000 $50, 000
At or before third anniversary $25,000 75,000 $50,0 00
At or before fourth anniversary $25,000 100,000 $50 ,000
A 2% Net Smelter Return royalty (‘NSR’) is payable to the vendor. Precipitate may purchase one-half of the
NSR Royalty at any time for a purchase price of $500,000, and may purchase the remaining one-half (1 %)
for $1,000,000.
Island Zinc Exploration History:
Island Zinc was first explored in the 1930’s by American Smelting and Refining whose work included various
surface explorations, two short 10 metre deep incli ned shafts and a 34m long adit (“Lee adit” or “Main
Showing area”). These workings are now collapsed and inaccessible. From 1965 to 1974, Giant Explorations
completed detailed work including blast trenching, hand stripping/pitting, road building, geological
mapping, magnetic-VLF geophysical surveying and 38 shallow diamond drill holes (‘X-ray’ core) totallin g
1,442 metres; dominantly focused on the Pit, Hilltop, Main and Pond zinc showing portion of the proper ty.
Reported highlights of the Giant Explorations diamo nd drill program include holes NL66-19: 8.8 metres @
5.6% zinc, 2.8% lead and 178 g/t silver (from 13.4m depth) and hole NL66-20: 5.5 metres @ 7.3% zinc,
6.9% lead and 370 g/t silver (from 17.4m depth). From late 1970’s to late 1980’ s various small exploration
companies completed limited and brief exploration w ork, including grid line cutting, geological mappin g,
and repeated sampling of the property’s more notabl e zinc showings. In 1988 Hisway Mining, collected
rock chip-channel samples at the Pit and Pond showi ngs, located about 600m west and 200m east
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respectively to the Main showing. Sampling at Pit r eported 2.1 metres @ 3.9% zinc, 2.5% lead and 744 g/t
silver , while Pond yielded 1.5m @ 9.2% zinc, 4.0% lead and 267 g/t silver . In 1988, Hisway drilled two short
inclined diamond drill holes at the Pit showing (combined total 89m); from which the company collected no
samples. In early 2017 Precipitate, as part of its’ due diligence work, collected rock grab samples fr om the
Main, Pond and Pit historical showings to verify historical data. Laboratory results from these rock samples
show zinc values up to 20.6%, lead values up to 9.4% and silver values up to 932 ppm.
* Note: Certain information and data in this news r elease concerning the Island Zinc property and past
work done thereon and results therefrom is historic al, being derived from publically available sources
including assessment reports and British Columbia M inister of Mines Annual Reports. The reliability of
some historical data is unknown but is considered r elevant by Company management. The historical data
may be non-NI 43-101 compliant and should not be re lied upon. It is the Company’s intention to verify the
historical data, however confirmation work may prod uce results that differ substantially from the hist oric
results. There is a risk that current exploration a nd test work will not result in the Company replica ting
historical results. Rock grab samples are selective by nature and are unlikely to represent average gr ades
on the property.
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.
Rock and soil samples were bagged, sealed and deliv ered directly to Bureau Veritas (“BV”) preparation fa cility in
Vancouver BC (an ISO 9001 accredited facility) where they were dried, crushed (or sieved in the case of soils) and
pulped. Samples were crushed (or sieved) to with up to 80% passing 2mm and split using a riffle splitt er (code PRP70-
250). An approximate 250 gram sub-sample split was pulverized to minus 200 mesh (74μ). A 15 gram sub-s plit from
the resulting pulp was then subjected to aqua regia digestion and multi-element ICP-MS analysis (code AQ201). Rock
sample results with over limit zinc, lead and silve r were subjected to “ore & high grade’ AA and ICP analysis (0.5 g
pulp; codes MA370 and MA404).
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 of the D ominican Republic. The Company also maintains asset s
in northern British Columbia and southeast Yukon Te rritory and is actively evaluating additional high-
impact property acquisitions with the 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]
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.
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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, politi cal 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.
Intrusive Rock
(Quartz Diorite)
Karmusten volcanics
Exploration TargetQuatsino limestone
Bonanza
volcanics
Bonanza
volcanics
south dip 35-60°
property border
forestry access road
20 kilometres to Port Hardy
0 500 1000
metres
~ 4 kilometres
April 2017
Island Zinc Project
British Columbia
Zinc Mineral Showing
Historical drill & Adit Area
fault
DDH 66-19: 8.8 metres @ 5.6% zinc, 2.8% lead and 178 g/t silver
DDH 66-20: 5.5 metres @ 7.3% zinc, 6.9% lead and 370 g/t silver
Precipitate rock grabs up to 12.3% zinc, 9.4% lead and 932 g/t silver
Select Historical Highlight Data
* Rock grab samples are selective by nature and are unlikely to represent average grades on the property.
Main
Pond
Hilltop
Pit
Gravity Survey
Target Area
Gravity Survey
Target Area
Vancouver I
sland
Port Hardy
Whistler
Island Zinc
Victoria
Vancouver
looking northwest
Hypothetical Geophysical
Gravity Profile
primary drill target
area
primary
drill target
area
Intrusive Rock
(quartz diorite)
sill - dyke
hornfels
alteration
manto
manto
chimney
vein
vein
Karmusten volcanics
Quatsino limestone
Bonanza
volcanics
Dominant Mineralization Zonation
copper zinc lead silver
skarn alteration
skarn
Island Zinc Project, British Columbia
Schematic Cross Section Model
Carbonate Replacement Deposit
zinc, lead, silver mineralization
April 2017