Trillium Gold Acquiring 80% Interest in Gold Centre Property in the Heart of the Red Lake Mining Camp
News Release
Trillium Gold Acquiring 80% Interest in Gold Centre
Property in the Heart of the Red Lake Mining Camp
• Adjacent to and on strike with Evolution Mining’s
Campbell-Red Lake Mine which has produced 23.8 M
ounces of gold at an average grade of greater than ½
ounce gold per ton (or greater than 15.6 g/t)
• Balmer volcanics intersected at depth on the Gold
Centre Property
• Underground development from adjacent mine less
than 350 metres away
• The acquisition of an 80% interest in Gold Centre
places Trillium Gold in the heart of the highest-grade
gold camp in North America having produced more
than 29.5 M ounces of gold at an average grade of
15.41 g/t Au during the past 91 years
Vancouver, British Columbia, Canada – August 31, 2020 –
Trillium Gold Mines Inc. (TSXV:TGM ) (“Trillium” or the
“Company“) has signed a binding joint venture agreement with
Rupert Resources Ltd (“Rupert”) to acquire an 80% ownership in
the Gold Centre property from Rupert. Under the terms of the joint
venture agreement, in order to maintain its 80% interest in the
property, Trillium is required to spend C$ 2 million each year for
five years on the property (total spend C$ 10 million) and to issue
500,000 shares to Rupert on the effective date of the joint venture
and for each of the three years after (total shares issued 2 million).
Thereafter, Trillium is required to spend C$ 500,000 per year in
order to maintain its 80% interest in the property. Rupert’s portion
of any amounts incurred by the Company on the Gold Centre
property after a decision to construct a mine are recoverable by
the Company from Rupert’s share of the revenues of the joint
venture.
Russell Starr, CEO of Trillium Gold comments “Trillium
continues focused and strategic M&A in the Red Lake Camp.
Gold Centre has the potential to be a world-class asset and
generate substantial value to Trillium Gold’s market
capitalization and shareholder base. Our technical team is eager
to test for the logical extension of the Red Lake mine’s
mineralization onto the Gold Centre property.”
The Gold Centre property lies to the southeast and within the
shadow of the headframe of Evolution Mining’s Red Lake Mine.
The property is contiguous with Evolution’s operating property
and comprises 258 hectares made up of one lease containing 16
claims (See Figure 1.).
Figure 1 Location of the Gold Centre property within The Red
Lake Mine Trend
Drilling programs completed by Rupert Resources in 2004 and
2007, totalling 11,372 metres, successfully intersected the prolific
Balmer mafic metavolcanics, the dominant sequence of rocks that
hosts the southeastern extension of the Red Lake Mine ore zones
at depth.
Trillium Gold is planning a strategic and targeted exploration
program for the Gold Centre project. A key component of the
C$2 million drilling program is deep oriented core drilling (2
holes of 1,000m) to test for the down-plunge extension of the
High Grade Zone (“HGZ”) currently in production at the
neighboring Evolution Mining’s Red Lake mine. With success,
Trillium will have proven that this prolific gold zone continues on
to the Gold Centre property and is only about 350m from the
current operating areas of Evolution’s mine, as illustrated in
Figure 2.
Figure 2 Longitudinal Section showing Cochenour Mine, the
Campbell-Red Lake Deposits and the Gold Centre Property
Key Characteristics of the Gold Centre Property (from the 2014
NI 43-101 Technical Report on the Gold Centre Property by
Osmani and Zulinski):
The favorable Balmer mafic metavolcanics hosting
several gold deposits at the adjacent Red Lake Mine
have been identified in drill core and on surface following
the 2013 geological mapping program.
The more recent discovery of the Far East Zone by
Goldcorp has provided further support that the southwest
dipping Red Lake Mine trend potentially extends through
the Gold Centre Property at depth.
The interpreted unconformity between the Balmer and
Huston assemblages will be a high priority target on the
Gold Centre Property. Several of the Red Lake mines
occur within or adjacent to this regional unconformity
according to Dubé et al. (2003: Gold mineralization
within the Red Lake mine trend: example from the
Cochenor-Willans mine area, Red Lake Ontario, with
new key information from the Red Lake Mine and
potential analogy with the Timmins camp. Geological
Survey of Canada, Current Research 2003-C21).
Following the geophysical IP survey in 2013, a total of 9
anomalous trends have been interpreted on the Gold
Centre Property, three of which are identified on the
North Grid as strong to very strong. Two are indicative of
a sulphide mineralization source potentially associated
with complexly folded/faulted contact between the
Huston conglomerate and Balmer mafic metavolcanic
rocks. An additional strong to very strong anomalous
trend has been identified on the South Grid.
Figure 3 Animation showing ore blocks projected to surface
relative to the Gold Centre Property
The technical information presented in this news release has
been reviewed and approved by Robert W. Schafer QP, PGeo,
a director of Trillium Gold Mines, as defined by NI 43-101.
For further information about this news release and the
Company’s current activities contact [email protected], visit
our website at www.trilliumgold.com or call us at 604-688-9588.
On behalf of the Board of Directors,
Trillium Gold Mines Inc.
“Russell Starr”
Russell Starr
President, CEO and Director
About Trillium Gold Mines Inc.
Trillium Gold Mines Inc. is a British Columbia based company
engaged in the business of acquisition, exploration and
development of mineral properties located in the highly
prospective Red Lake Mining District of Northern Ontario.
Disclosure and Caution
Completion of the transaction is subject to a number of
conditions, including TSX Venture Exchange acceptance. The
transaction cannot close until the required conditions are
satisfied and required approvals are obtained. There can be no
assurance that the transaction will be completed as proposed or
at all. Trading in the securities of the Company should be
considered highly speculative. The TSX Venture Exchange has
not reviewed or approved the terms to the Transaction.
Neither 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.
This news release contains forward-looking information, which
involves known and unknown risks, uncertainties and other
factors that may cause actual events to differ materially from
current expectation. Readers are cautioned not to place undue
reliance on these forward-looking statements, which speak only
as of the date of this press release. The Company disclaims any
intention or obligation, except to the extent required by law, to
update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise.