Pancon Provides Exploration Update for Its Advanced Stage McBride Nickel-Cobalt-Copper Project in Southern Ontario
Pancon Provides Exploration Update for Its Advanced
Stage McBride Nickel-Cobalt-Copper Project in Southern
Ontario
Toronto, Ontario--(Newsfile Corp. - July 31, 2018) - Pancontinental Resources Corporation (TSXV: PUC) ("Pancon" or the
"Company") provides an update on exploration activities at the Company's advanced stage nickel-cobalt-copper McBride
Project (the "Project"), located in Limerick Township, 25 kilometres south of Bancroft, Ontario. The Project contains Historical
Resources of an estimated 5.1 million tons of near-surface nickel-cobalt-copper mineralization that includes the North Zone
deposit, the South Zone deposit, and the South Extension prospect [Reno Pressacco, Micon International Limited ("Micon"),
2004, NI 43-101 Technical Report].
The foregoing Historical Resource estimates presented above were completed prior to the implementation of the NI 43-101
requirements; however, given the high quality of the historic work completed and the respective mining companies' reputations
and production history of the previous Project owners, Pancon believes the Historical Resource estimates to be both relevant
and reliable. In addition, a Qualified Person has not completed sufficient work to classify these historic mineral resources as
current mineral resources; and the Company is not treating the Historic Resources as current.
Highlights:
Retained P&E Mining Consultants Inc. to produce an updated, independent NI 43-101 Resource Estimate.
Produced a comprehensive digital database of all historic drill core, sample reject and downhole survey data from more
than 80 historic diamond drill holes.
Re-boxed and re-logged more than 20,000 metres of historic diamond drill core housed at the government core storage
facility in Tweed, Ontario.
Cut 70 kilometres of lines, and restored the Project grid from historic work conducted in the 1960s, 1970s and 2004 by
Macassa Mines, Long Lac Minerals, and Limerick Mines.
Commenced in-depth geological mapping of entire core block covered by the Project grid, 30% of which has been
completed to date.
Commenced soil sampling and geochemistry analysis to build on previous soil geochemistry work conducted at the North
Zone, South Zone and Southern Extension.
Commenced interpretation of historic airborne geophysical surveys conducted by Long Lac Minerals.
Commenced environmental and social impact baseline studies.
Commenced local community and Alderville First Nations consultations.
"We are encouraged by the work that has been conducted at our advanced-stage McBride Project thus far," said Layton Croft,
Pancon's President and Chief Executive Officer. "Our Phase 1 objectives are to produce a comprehensive modern exploration
database, deliver a NI 43-101- Resource Estimate, and begin drilling in order to expand the resource and prepare for a
Preliminary Economic Assessment. Market demand for battery metals, including cobalt and nickel, remains strong. The McBride
Project is well positioned to be a source of high quality, low cost battery metal supply to meet that growing demand in the
medium term and over time."
About the
McBride Project
The McBride Project, covering 880 hectares of patented mining land, is led by Dr. Derek McBride, P.Eng., who has assembled
an experienced professional team with combined 35 years' experience at and knowledge of the Project.
The McBride Project contains Historical Resources of an estimated 5.1 million tons of near-surface nickel-cobalt-copper
mineralization. It includes: the North Zone deposit, the South Zone deposit, and the South Extension prospect [Reno Pressacco,
Micon International Limited ("Micon"), 2004, NI 43-101 Technical Report]. The Project was discovered in the 1960s and
diamond drill tested with more than 90 holes by Macassa Gold Mines Limited ("Macassa") and Long Lac Minerals Limited
("Long Lac"), which later acquired control of Macassa. In 1971, Long Lac produced the following Historical Resource estimate
[Pressacco/Micon, 2004; and Robert Chataway, 2015, NI 43-101 Technical Report]:
North Zone: 3.9 million tons grading 0.82% nickel, 0.054% cobalt and 0.25% copper;
South Zone: 1.2 million tons, grading 0.30% nickel, 0.03% cobalt and 0.14% copper.
The foregoing Historical Resource estimates presented above were completed prior to the implementation of the NI 43-101
requirements; however, given the high quality of the historic work completed and the respective mining companies' reputations
and production history of the previous Project owners, Pancon believes the Historical Resource estimates to be both relevant
and reliable. In addition, a Qualified Person has not completed sufficient work to classify these historic mineral resources as
current mineral resources; and the Company is not treating the Historic Resources as current.
Pancon entered into an option agreement effective April 25, 2018 with Hastings Highlands Resources Limited ("Hastings") to
earn up to 76% of the McBride Project. If Hastings, a private company, chooses not to fund its share of the joint venture after
76% is earned, Pancon can fully fund the joint venture and increase its ownership to 90%. The first option, for an initial 26%
interest, requires the Company to pay $142,500 in cash plus applicable 2017 property taxes (paid); to issue 500,000 Common
Shares of the Company to Hastings (issued); and to spend a minimum of $1.5 million on the Project within the first year of the
option period.
Pancon is actively pursuing its initial 26% interest. To that end, the McBride Project Management Committee has approved
Phase 1 of the Project Work Plan, which commenced in early May 2018. This update highlights progress made to date as per
the Project Work Plan.
For more information about the McBride Project, please see Pancon's detailed news release from April 26, 2018:
"
Pancontinental Acquires Advanced Nickel-Cobalt-Copper Project in Southern Ontario with Two Defined Deposits
."
Qualified Person
The technical information in this news release has been prepared in accordance with Canadian regulatory requirements as set
out in NI 43-101 and reviewed and approved by Dr. Derek McBride, P.Eng., a Qualified Person as defined by NI 43-101 and a
technical advisor for Pancon.
About Pancontinental Resources Corporation
Pancontinental Resources Corporation (TSXV: PUC) is a Canadian-based mining company focused on exploring and
developing its advanced stage McBride Nickel-Cobalt-Copper Project and its early stage Montcalm West Nickel-Cobalt-Copper
Project, both in Ontario, Canada. Pancon's strategy is to acquire and create value from prospective assets in low-risk areas with
existing resources and/or in proximity to producing or former mines. The Company also holds 100% interest in the Jefferson
Gold Project in South Carolina, USA. In 2015, Pancon sold its interest in its Australian rare earth element (REE) and uranium
properties, formerly held through a joint venture, and retains a 1% gross overriding royalty on 100% of future REE production.
For further information, please contact:
Jeanny So, Investor Relations
T: +1.416.293.8437
E:
For additional information please visit our new website at
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.
Cautionary Language and Forward Looking Statements
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.