Trillium Gold Signs Purchase Option Agreements Extending its Dominant Confederation Belt Land Position in Red Lake, Ontario
NEWS RELEASE
Trillium Gold Signs Purchase Option Agreements
Extending its Dominant Confederation Belt Land Position
in Red Lake, Ontario
Vancouver, BC, Canada – April 5, 2022 – Trillium Gold Mines Inc. (TSXV:TGM, OTCQX:TGLDF,
FRA:0702) (“Trillium Gold” or the “Company”) is pleased to announce that it has signed two
purchase option agreements in respect of the the Uchi Gold Project (the “Uchi Gold Agreement”)
and the Satterly Gold Project, (the “Satterly Gold Agreement” , together with the Uchi Gold
Agreement, the “Agreements”), to acquire a 100% undivided interest in the respective areas within
the Confederation greenstone belt.
The Agreements are considered significant steps in strengthening Trillium Gold’s strategic objective
to consolidate the Confederation belt and Birch-Uchi greenstone belts, positioning it as the most
dominant exploration company in the Red Lake Mining District.
The Uchi Gold Agreement comprises one hundred eighty -two (182) unpatented mining claims
covering 4,189 hectares immediately adjacent to and adjoining the Company’s Confederation b elt
land position. The Satterly Gold Agreement comprises five (5) unpatented mining claims covering
565 hectares adjoining the Company’s Satterly Lake properties located to the northeast of the
Confederation belt land package.
Uchi Gold Agreement
The Uchi gold properties comprise the contiguous and complementary Lost Bay, Fly East and Leg
Lake mining claims that extend the Company’s existing Confederation belt property assemblage to
the northeast towards the Satterly Lake property , and add to Trillium’s already dominant position
over 100km of favourable structure on trend with Kinross Gold’s Dixie deposit (see Figures 1 & 2
below).
The Fly East and Leg Lake properties have seen limited reconnaissance type exploration in the
past and were primarily explored for base metals in the 1970’s and 1980’s, which comprised only
eight drill holes over the properties. Platinum group mineralization was explored for in the early
2000’s with results of up to 1 g/t PGMs and 1.8% copper.(1) Some minor gold exploration had taken
place on Fly East but only as a carry-over from the Bobjo Mine property to the north and the Uchi
Mine to the east. Both properties contain favourable structures and lithologies for both gold and
base metals.
The Lost Bay property is located in the vicinity of the historic Bobjo Mine which produced 362
ounces of gold in 1929(2). The Lost Bay property contains NE-SW trending felsic and mafic volcanic
rocks with gold mineralization appearing to follow a preferred orientation trending west-northwest,
corresponding to the orientation of the D2 deformation within the Red Lake District. While some
gold exploration was undertaken during the mid-1930’s along with base metals targeting South Bay
Mine analogues, these D2 structures were not considered to be important in the base metal context
and will be a key exploration strategy for Trillium Gold. This property is prospective for gold, base
metals (copper/zinc) and PGMs.
Satterly Gold Agreement
The Satterly Lake properties comprise twenty-eight (28) claim cells in five (5) claims covering 565
hectares. The area has seen sporadic exploration from the 1930’s with renewed gold exploration
in the 1990’s and again from 2009. The area is underlain by a variety of rock types including mafic
volcanics and intrusives, sediments and lamprophyre dykes. Cominco performed a local basal till
sampling program in the northeast corner of the property, receiving a number of anomalous results
(see Figure 2 below).
Terms of Agreements
Uchi Gold Agreement: Pursuant to the Uchi Gold Agreement, in order to keep the option
thereunder in good standing Trillium Gold is required to pay an aggregate consideration of
$115,000 over a period of three years, issue an aggregate 300,000 common shares , and grant to
the vendors a 2.0% net smelter returns royalty on each purchased asset. The Company has the
right to repurchase 50% of each royalty (being 1.0%) by paying the holders an aggregate amount
equal to $1,000,000.
Satterly Gold Agreement: Pursuant to the Satterly Gold Agreement, in order to keep the option
thereunder in good standing Trillium Gold is required to pay an aggregate consideration of $63,500
over a period of three years, issue an aggregate 100,000 common shares, and grant to the vendors
a 1.5% net smelter returns royalty on each purchased as set. The Company has the right to
repurchase 50% of each royalty (being 0.75%) by paying the holders an aggregate amount equal
to $500,000.
The common shares issuable pursuant to the foregoing Agreements will be subject to a four month
hold period pursuant to applicable securities laws. The completion of the transacitons contemplated
by the Agreements is subject to TSXV approval.
The technical information presented in this news release has been reviewed and approved by
William Paterson QP, P.Geo, Vice President of Exploration of Trillium Gold Mines., as defined by
NI 43-101.
(1) Assessment Record 52N02SE2014, Report on a Magnetic and Horizontal Loop EM Survey, Leg Lake Project,
First Au Strategies Corp, 2003
(2) Paterson, W.P.E., Ravnaas, C., Lewis, S.O., Paju, G.F., Fudge, S.P., Daniels, C.M. and Pettigrew, T.K. 2020.
Report of Activities 2019, Resident Geologist Program, Red Lake Regional Resident Geologist Report: Red
Lake and Kenora Districts; Ontario Geological Survey, Open File Report 6363, 112p.
Figure 1: Uchi Gold Option Properties
Figure 2: Uchi and Satterly Gold Option Properties
On behalf of the Board of Directors,
Trillium Gold Mines Inc.
Russell Starr
Chairman, President & CEO
For further information, please contact Donna Yoshimatsu, VP Corporate Development and
Investor Relations at [email protected], (416) 722-2456, or [email protected].
Visit our website at www.trilliumgold.com.
About Trillium Gold Mines Inc.
Trillium Gold Mines Inc. is a growth focused company engaged in the business of acquisition,
exploration and development of mineral properties located in the Red Lake Mining District of
Northern Ontario. As part of its regional-scale consolidation strategy, the Company has assembled
the largest prospective land package in and around the Red Lake mining district in proximity to
major mines and deposits, as well as the Confederation Lake and Birch-Uchi greenstone belts.
Recent examples are the acquisition of the Willis property southwest of and contiguous to the
Newman Todd complex, and a definitive agreement giving the Company control over a significant
portion of the Confederation Lake Greenstone Belt to more than 100 km in length. In addition, the
Company has interests in highly prospective properties in Larder Lake, Ontario and the Matagami
and Chibougamau areas of Quebec.
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.
Cautionary note regarding forward-looking statements
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
expectations.
Forward-looking information is based on management’s reasonable assumptions, estimates,
expectations, analyses and opinions, which are based on management’s experience and
perception of trends, current conditions and expected developments, and other factors that
management believes are relevant and reasonable in the circumstances, but which may prove to
be incorrect. Such factors, among others, include: impacts arising fr om the global disruption
caused by the Covid-19 coronavirus outbreak, business integration risks; fluctuations in general
macroeconomic conditions; fluctuations in securities markets; fluctuations in spot and forward
prices of gold or certain other commodi ties; change in national and local government, legislation,
taxation, controls, regulations and political or economic developments; risks and hazards
associated with the business of mineral exploration, development and mining (including
environmental hazards, industrial accidents); inability to obtain adequate insurance to cover risks
and hazards; the presence of laws and regulations that may impose restrictions on mining;
employee relations; relationships with and claims by local communities and indigenous
populations; availability of increasing costs associated with mining inputs and labour; the
speculative nature of mineral exploration and development (including the risks of obtaining
necessary licenses, permits and approvals from government authorities); and title to properties.
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.