Pancon Acquires Historic Sawyer Gold Mine, North Carolina
Pancon Acquires Historic Sawyer Gold Mine,
North Carolina
Toronto, Ontario--(Newsfile Corp. - February 1, 2023) - Pancontinental Resources Corporation (TSXV:
PUC) (OTCQB: PUCCF) ("Pancon" or the "Company") has entered into an exploration lease and
purchase option agreement (the "Agreement") with the owner of Carolina Mining Company ("CMC") for
the historic Sawyer Gold Mine Property ("Sawyer" or the "Property"), a past-producing gold mine. The
54.6 hectare (135 acre) property is located 5.0 km southwest along trend from the Company's recently
announced New Sawyer mine acquisition (
see January 24, 2023 news release
).
Mineralization style and host rocks are similar at both Sawyer and New Sawyer properties and they both
lie within the Sawyer-Keystone Gold Trend ("Sawyer Trend") (Moye 2018) (see Figure 1). The Sawyer
Mine property has an Historic gold resource estimate (2021) which contains
3.9 million tonnes at 1.1 g/t
Au for 134,600 ounces of gold,
at a 0.4 g/t Au cut-off grade. The mineralization is outcropping and is
mainly near surface, containing mostly oxide and mixed oxide/sulfide mineralization with lesser sulfide
resources. The mineralization remains open for expansion in several areas.
Pancon's Senior Technical Advisor Keith Laskowski, QP, stated: "The acquisition of these two historic
gold mines, both located within the recently recognized Sawyer Gold Trend, provides Pancon with a high
quality exploration target. The properties enjoy the combination of tropical weathering, near surface
mineralization and untested extensions of known mineralization, all of which make this a very exciting
exploration opportunity. By verifying and expanding historic gold resources at Sawyer, and creating new
resources at New Sawyer, the Sawyer Trend exploration program has the capacity to produce a large,
near surface, oxide gold deposit in a predictable and short time frame. The Sawyer Trend was
recognized in the last decade, and this will be the first modern evaluation of the distribution and controls
on known gold mineralization."
Figure 1. Location of the Sawyer Gold Trend in Randolph County, North Carolina
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History:
The Sawyer Gold Mine property lies within the Sawyer Gold Trend, a >20 km long structurally-
controlled alignment of mainly volcanic-hosted, Haile-type alteration and historic gold mines (Moye,
2018). The Sawyer Mine was discovered around 1820 and was reported to be in operation.
Mineralization was identified along 5-6 parallel zones of strongly foliated Au-bearing silicified schist. The
mine was active in 1902 with a 46 meter-deep shaft on the Miller Vein completed around 1906, with six
shallower shafts opened along other lodes. The site was inactive by 1913, but some prospecting was
reported as late as 1930.
Moye (2018) compiled the following map (Figure 2) which notes historic gold
grades in ounces/ton as shown (not g/t).
(
The Property line does not accurately reflect the current
property and gold assay values have not been confirmed
.)
Figure 2. Map of Sawyer Gold Mine showing historic mining locations and gold grades in
ounce per ton (Moye, 2018*)
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The Sawyer Mine has been explored at various times by several companies, including:
1979-80
:
New Jersey Zinc explored and collected bulk sample.
1983-85
: Goldfields drilled 7 core and 19 RC holes for a total of 1,884 meters.
1990:
Corona conducted extensive trenching program.
1993-95:
Minefinders drilled 55 rotary RC holes for a total of 1,676 meters.
2009:
NCAU/HB Engineering drilled 60 RRC (1436.5 m) and 6 core holes (85 m);
most holes drilled 15 - 45.7 m.
prepared initial engineering studies for open pit, heap leach gold mine.
2011:
Romarco Minerals drilled 16 holes/5000 m core program based on similarities to the Haile
Gold Mine which they owned and operated.
*Reference:
Moye, Robert J., 2018,
Sawyer-Keystone Trend of Au-Ag-As deposits in Randolph County, North Carolina: Geologic and metallogenic
analysis
: North Carolina Geological Survey, Open-File Report 2018-18, 45p.
Historic Resource Estimate:
CMC prepared an Historical polygonal, mineral resource estimate
(2020) with an internal consultant which confirmed the potential of the property.
In 2021, CMC contracted
RockRidge Partnership & Associates of British Columbia to evaluate the available data and to prepare
a geostatistical resource evaluation of the Hickory Gold Deposit (Sawyer Mine). The resource evaluation
was based on a total of 3,666 assay records from 120 reverse circulation (RC) drill holes, 40 diamond
(core) drill holes, and 14 trenches (see Figure 3). Following modelling of the mineralized domain
wireframe, a block model was constructed within the domain wireframe solid to cover the extents of the
Sawyer mineralization. Ordinary Kriging was used to estimate grades into the blocks. RockRidge is of
the opinion that the current drilling information is sufficiently reliable to interpret with confidence the
boundaries of the mineralization domains, and that the assay sample data is sufficiently reliable to
support estimating mineral resources. The resource evaluation estimates a mineral resource of 3.9
million tonnes at a grade of 1.1 g/t Au containing 134,600 ounces of gold, based on a cut off grade of 0.4
g/t Au.
The Company cautions that a Qualified Person has not done sufficient work to classify the Historic
Estimate as current mineral resources or mineral reserves under NI 43-101. The Company is not
treating the Historical Estimate as current mineral resources or mineral reserves. There can be no
certainty, following further evaluation and/or exploration work, that the Historic Estimate can be
upgraded or verified as mineral resources or mineral reserves in accordance with NI 43-101. However,
the Company plans to conduct further evaluation and/or exploration work with the objective of verifying
or upgrading the Historic Estimate as mineral resources or mineral reserves in accordance with NI 43-
101.
Figure 3. Sawyer Mine Compilation of Drill Holes, Trench Data and Cross Sections
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Exploration Data:
Pancon has the exclusive right to purchase exploration data from CMC, including a
high-resolution VTEM and airborne Magnetics survey flown by Geotech Ltd. in 2020, covering the
properties. The 100 meter-spaced flight lines provide resistivity/conductivity and magnetics data
covering both of Pancon's new exploration properties and the Sawyer Trend, extending from the west
side of the Sawyer Mine (see Figure 4) to the east side of the New Sawyer mine, a distance of about 10
km. the Geotech Survey was supervised and processed by Wave Geophysics (Craig Beasley) of
Evergreen, Colorado.
Figure 4. Location of the Sawyer Mine and the New Sawyer Mine Properties with VTEM survey
and flight line locations
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Details of the Agreement
The initial term of the Agreement is ten (10) years (the "Initial Term"). Pancon retains the exclusive
first right to automatically renew the Agreement for an additional ten (10) years (the "Additional
Term");
No cash payments for years one to five (1-5) of the Initial Term;
Advanced Royalty Payments of US$25,000 per year for years six to ten (6-10) of the Initial Term;
Advanced Royalty Payments of US$50,000 per year for years eleven to twenty (11-20) (the
Additional Term);
Pancon grants a 2% net smelter royalty ("NSR"), subject to the ability of Pancon to purchase 1% of
the NSR for a purchase price of US$5,000,000. All Advanced Royalty Payments shall be credited
against future NSR payments; and
Pancon has the exclusive option to purchase the Property (in order to develop new mining
operations) at anytime during the Agreement at a price equal to three (3) times the fair market
value of the Property, excluding any value or potential value of the Minerals.
Qualified Person
Keith Laskowski (MSc) is Senior Technical Advisor for the Company and is a Qualified Professional
(#01221QP) of the Mining and Metallurgical Society of America and a Qualified Person as defined by
Canadian National Instrument 43-101. He has reviewed and approved the technical information in this
press release.
About Pancon
Pancontinental Resources Corporation (TSXV: PUC) (OTCQB: PUCCF), or Pancon, is exploring the
Carolina Terrane in the southeastern USA. Its flagship project is the past-producing Brewer Gold Mine,
located in Chesterfield County, South Carolina, 12 kilometers along trend from the producing Haile Gold
Mine. Pancon's 100%-owned, 673 hectare Jefferson Gold Project is continuous with and mostly
surrounds the 389 hectare Brewer property. In January 2023, the Company announced exclusive mineral
exploration lease and purchase option agreements for both the 246.6 hectare
New Sawyer Gold Mine
Property and the 54.6 hectare Sawyer Gold Mine Property, both located on the Sawyer Gold Trend and
in Randolph County, North Carolina.
For further information, please contact:
Jeanny So, External Relations Manager
E:
T: +1.647.202.0994
For additional information please visit our new website at
http://www.panconresources.com/
and our
Twitter feed:
@PanconResources
.
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 is not comprised of historical facts.
Forward-looking information is characterized by words such as "plan", "expect", "project", "intend",
"believe", "anticipate", "estimate" and other similar words, or statements that certain events or
conditions "may" or "will" occur. Forward-looking information involves risks, uncertainties and other
factors that could cause actual events, results, and opportunities to differ materially from those
expressed or implied by such forward-looking information. Factors that could cause actual results to
differ materially from such forward-looking information include, but are not limited to, changes in the state
of equity and debt markets, fluctuations in commodity prices, delays in obtaining required regulatory or
governmental approvals, and other risks involved in the mineral exploration and development industry,
including those risks set out in the Company's management's discussion and analysis as filed under the
Company's profile at
www.sedar.com
. Forward-looking information in this news release is based on the
opinions and assumptions of management considered reasonable as of the date hereof, including that
all necessary governmental and regulatory approvals will be received as and when expected. Although
the Company believes that the assumptions and factors used in preparing the forward-looking
information in this news release are reasonable, undue reliance should not be placed on such
information. The Company disclaims any intention or obligation to update or revise any forward-looking
information, other than as required by applicable securities laws.
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https://www.newsfilecorp.com/release/153089