Crest Enters into Option Agreement with Urbangold Minerals Inc.
CREST RESOURCES INC.
S u i t e 11 00 - 5 95 H o w e S t re e t , V a n c o u v e r , B C V6 C 2 T 5
T ( 6 0 4) 6 8 1- 3 1 7 0, F ( 6 0 4 ) 681 -3552
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NEWS RELEASE
CREST ENTERS INTO OPTION AGREEMENT WITH URBANGOLD MINERALS INC.
Vancouver, B.C. – February 3 , 2021 - Crest Resources Inc. (“Crest” or the “Company”) (CSE: CRES)
announces that it has entered into an Option Agreement dated February 2, 2021 (the “Option
Agreement”) with UrbanGold Minerals Inc. (TSXV: UGM) (UrbanGold”) to acquire certain mining claims
located in NTS 32B05 and 32B12, approximately 160 kilometres northeast of the Town of Val d’Or, in the
Province of Quebec (the “Claims”).
Pursuant to the terms of the Option Agreement, Crest shall have the right until the third anniversary of
the Option Agreement to acquire 100% of UrbanGold’s interest in the Claims by:
(a) making a total cash payment of $25, 000 to UrbanGold on the Closing Date (as defined in the
Option Agreement);
(b) issuing common shares in the capital stock of the Company (the “Option Shares”) as follows:
(i) 400,000 Option Shares to UrbanGold on the Closing Date;
(ii) 400,000 Option Shares to UrbanGold within one year of the Closing Date;
(iii) 400,000 Option Shares to UrbanGold within two years of the Closing Date;
(iv) 1,250,000 Option Shares to UrbanGold within three years of the Closing Date.
A portion of the claims is subject to a 1% royalty. Upon completion of the Option, UrbanGold will transfer
a 100% stake in the Claims to Crest. At that time, Crest will grant a royalty to Urbangold equal to 1% of
the net smelter returns on the Claims that are not subject to the existing royalty.
The StarGold property consists of 234 mineral claims totalling 13345.69 ha and is located in Bongar and
Logan Townships; approximately 112 km east of Senneterre, Quebec (200 km ENE of Val -d’Or) and is
accessible via logging road. Lake Ouiscatis provides boat access to almost everywhere on the property.
The Stargold Project is host the namesake Stargold Boulder discovery, a large (> 1 m) angular siliceous
boulder bearing massive to semi -massive gold-bearing sulphides that was reported to have assayed up
279 g/t Au in grab samples (Castle Rock Exploration April 20th, 1998 New s Release). This boulder was
found in a ditch along the logging road that runs along the Megiscane River. It was discovered
by Norcal Resources Ltd. in late October 1997. In 2019 airborne Electromagnetic geophysics and
ground prospecting work by Urbangold defined a series of targets for testing the possible source of the
boulder.
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STARGOLD PROPERTY GEOLOGY
As described by Norcal Resources in 1997 (GM 56950, Section 7.1, Regional Geology), the Grenville Front
lies immediately east of a post-metamorphic north-northeast-trending fault coincident with the Serpent
River. The Grenville Front is a diffuse metamorphic boundary, not a fault. The Stargold property is located
east of the Serpent River Fault and is therefore located within Grenville Province (Figure 10, Regional
Geology Map). The underlying rock s consist of volcano -sedimentary, komatiitic and banded iron
formation horizons metamorphosed to middle amphibolite facies gneisses.
DEPOSIT TYPES
Three types of mineralization are expected on the StarGold property:
- Gold-rich volcanogenic massive sulphide (gold-rich VMS) deposits, similar to the recently-closed
Bousquet #2 and IAMGold’s LaRonde mines)
- Volcanogenic massive sulphide deposits (VMS), analogous to Teck’s Louvicourt mine , which
ceased operations in 2005
- Gold-rich polymetallic veins, similar to the Doyon and Mouska gold mines
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Nick Rodway, P.Geo, is an officer of the Company, shareholder and qualified person as defined by National
Instrument 43 -101. Mr. Rodway supervised the preparation of the technical information in this news
release.
About Crest Resources Inc.
Crest Resources Inc. is a British Columbia company listed on the Canadian Securities Exchange under the
symbol CRES. The Company’s principal business activity is the acquisition, exploration and evaluation of
mineral property assets in Canada, Australia and Peru and the investment in mineral exploration
companies and related mining technol ogies of merit. The Company’s Canadian mineral property assets
include various land and corporate ownership positions within the Exploits Subzone, the newest emerging
district-scale gold exploration and mining district in the province of Newfoundland and Labrador.
About UrbanGold
UrbanGold Minerals Inc. is a precious metals exploration company with its activities focused on the
Troilus-Frotet gold belt, Quebec. The Company specializes in project generation supported by substantial
exploration expertise. T he Company's common shares trade on the TSX Venture Exchange under the
symbol "UGM".
FOR FURTHER INFORMATION CONTACT:
Michael Collins
President and CEO
Crest Resources Inc.
Telephone: 604-681-3170
Neither the Canadian Securities Exchange nor its Regulation Service Provider (as the term is defined in the
policies of the Canadian Securities Exchange) accepts responsibility for the adequacy of accuracy of this
news release.