Gitennes Signs Agreement to Acquire Advanced Stage, High Grade Gold Project in British Columbia and Appoints New Director
Gitennes Signs Agreement to Acquire Advanced Stage, High Grade Gold Project in
British Columbia and Appoints New Director
Vancouver, B.C., - February 16, 2017: Gitennes Exploration Inc. ("Gitennes" or the "Company")
- (TSXV – GIT) announces that it has entered into a Letter Agreement (the " Agreement") with a
private company, Omineca Gold Ltd. ("Omineca"), whe reby the Company will be granted the
exclusive right to acquire an undivided 100% interest in and to Omineca’s advanced stage, high
grade Snowbird gold project, located near Fort St. James, British Columbia (the "Snowbird
Project").
Snowbird Project Highlights
Past exploration activities carried out on the Snowbird Project include:
• 91 diamond drill holes totaling 9,340 meters;
• 164 percussion holes totaling 2,535 meters;
• Extensive soil sampling, geological mapping and ge ophysics;
• Digitized database incorporating historical work f rom 1975 onwards; and
• Diamond drilling permits in place.
Selected historical diamond drill results include:
• 23.9 g/t gold over 0.91 meters;
• 18.5 g/t gold over 2.44 meters;
• 48.0 g/t gold over 1.0 meters.
Readers are cautioned that a "qualified person" (as defined by National Instrument 43-101) has not yet completed sufficient work to
be able to verify the historical information, and therefore the information should not be relied upon.
Overview of the Snowbird Project
The Snowbird Project consists of eight mineral tenu res, comprising an aggregate area of 2,021
hectares, located approximately 20 kilometers west of Fort St. James, British Columbia. The
project is accessible year round via paved and dirt roads and sits at a relatively low elevation
with moderate relief (not exceeding 190 meters) all owing access to all parts of the property and
enabling cost effective diamond drilling programmes.
Mineralization
The Snowbird Project hosts structurally controlled orogenic gold mineralization. Gold occurs in
veins and stringer zones localized within the north west-trending Sowchea Fault Zone and
associated subsidiary structures. Better developed quartz-carbonate veins and stringer zones,
and higher gold grades, occur at the hangingwall an d footwall contacts of the host shear zone.
Rare coarse gold and massive stibnite is associated with cross-cutting north-south faults, which
have not been adequately tested by prior drill orie ntations. Gold mineralization also occurs in a
poorly explored, narrow elongate body of sericite-m uscovite altered quartz diorite to tonalite
intrusive outcrops east of the Sowchea Fault Zone. The major host lithologies on the Snowbird
Project are argillite, chert, Alpine-type ultramafi cs (harzburgite), andesite, granodiorite, diorite
and minor limestone.
Drilling in previous campaigns has been carried out over approximately 800 metres of the
prospective Sowchea Fault Zone to a vertical depth of 180 metres. Drill hole X 86-7 intersected
1.0 metre of 24.5 g/t gold from 28.04 m to 29.04 me tres and hole X 88-13 intersected 1.0 metre
of 48.0 g/t from 109.72 m to 110.72 m ( Readers are cautioned that a "qualified person" (as defined by National
Instrument 43-101) has not yet completed sufficient work to be able to verify the historical informati on, and therefore the information
should not be relied upon ).
The Agreement
Subject to acceptance for filing of the Agreement b y the TSX Venture Exchange (the "TSX-V"),
the Agreement provides that Gitennes may earn a 100 % interest in the Snowbird Project by
making share payments to the shareholders of Ominec a and incurring certain exploration
expenditures as follows:
Date for Completion
Number of Common Shares
to be Issued
Minimum Exploration
Expenditures to be Incurred
Upon TSX-V acceptance for filing of
the Option Agreement
6,000,000 Nil
On or before September 30, 2018 2,000,000 $500,000
On or before September 30, 2019 2,000,000 $500,000
On or before September 30, 2020 2,000,000 $500,000
TOTAL: 12,000,000 $1,500,000
Upon making the above share issuances and exploration expenditures, Gitennes will own 100%
of the Snowbird Project subject only to a 2% net sm elter returns (“NSR”) royalty to a maximum
of $1,300,000 and reverting to a 1% NSR royalty wit h no cap thereafter. Any shares issued by
the Company in connection with the exercise of the Option will be subject to a hold period in
Canada of four months and a day from the date of issuance.
Appointment of Director and Grant of Incentive Stock Options
The Company also announces the appointment of Mr. J esse Grady to its Board of Directors.
Mr. Grady is a professional geologist and is curren tly Vice President of Exploration for Redstar
Gold Corp. Mr. Grady previously held positions as an exploration geologist, project manager,
and geological consultant for various exploration c ompanies through feasibility stage projects
within Alaska and Nevada. He is a co-founder and P resident of Intercept Minerals Corp. and
was a partner in YKPS Professional Services LLC, wh ich provides exploration services to
companies working in Alaska. Mr. Grady holds a BSc and an MSc in Geology from the
University of Nevada, Las Vegas, and is a member of the American Institute of Professional
Geologists.
Pursuant to the Company’s stock option plan, the Company intends to grant 1,500,000 incentive
stock options to its directors and officers. Each option is exercisable at $0.05 per share and has
a term of five years.
About Gitennes Exploration Inc.
Gitennes is in the business of exploring for minera l deposits. Gitennes acquires properties
directly by staking, through option agreements with prospectors or other exploration companies,
and through reconnaissance programmes.
Qualified Person
The scientific and technical information contained in this news release has been reviewed and
approved by L. Mireku, MSc (P.Geo.), who is a "qualified person" within the meaning of National
Instrument 43-101.
For further information on the Company, readers are referred to the Company’s website at
www.gitennes.com and its Canadian regulatory filings on SEDAR at www.sedar.com .
On behalf of the Board of Directors of
Gitennes Exploration Inc.
“Ken Booth”
Ken Booth
President
For further information, please contact: Ken Booth
Phone: 604-682-7970
Email: [email protected]
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts respo nsibility for the adequacy or accuracy of this news
release.
Cautionary Note Regarding Forward-Looking Informati on
This news release includes certain statements that constitute "forward-looking information" within the meaning of
applicable Canadian securities laws concerning the business, operations and financial performance and condition of
the Company. All statements in this news release t hat are not purely historical are forward-looking s tatements and
include any statements regarding beliefs, plans, ex pectations and orientations regarding the future. Often, but not
always, forward-looking statements can be identifie d by words such as "pro forma", "plans", "expects", "may",
"should", "budget", "schedules", estimates", "forec asts", "intends", "anticipates", "believes", "poten tial" or variations of
such words including negative variations thereof an d phrases that refer to certain actions, events or results that may,
could, would, might or will occur or be taken or ac hieved. Such forward-looking statements include, a mong others,
statements as to the anticipated business plans and timing of future activities of the Company, includ ing the exercise
of the Option to acquire the Snowbird Project and t o conduct exploration activities thereon. Actual r esults could differ
from those projected in any forward-looking stateme nts due to numerous factors including risks and unc ertainties
relating to exploration and development and actual results of exploration activities; the ability of t he Company to
obtain additional financing; delays in obtaining go vernmental and regulatory approvals (including of t he TSX-V),
permits or financing; the need to comply with envir onmental and governmental regulations; potential de fects in title to
the Company's properties; fluctuations in the prices of commodities and precious metals; operating hazards and risks;
environmental issues and liabilities; and competiti on and other risks and uncertainties of the mining industry.
Although the Company believes that the beliefs, plans, expectations and intentions contained in this news release are
reasonable, there can be no assurance that those be liefs, plans, expectations or intentions will prove to be accurate.
Readers should consider all of the information set forth herein and should review the Company’s periodic reports filed
from time-to-time with Canadian securities regulato rs. These reports and the Company's filings are av ailable at
www.sedar.com.
Readers are cautioned not to place undue reliance o n forward-looking statements. The forward-looking statements
contained in this news release are made as of the d ate of this news release and, except as otherwise r equired by
law, the Company undertakes no obligation to update the forward-looking statements contained herein, o r to update
the reasons why actual results could differ from those projected in these forward-looking statements.