Pancontinental GOLD Acquires Strategic Nickel-Copper-Cobalt Project IN Canada
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January 10, 2018
PANCONTINENTAL GOLD ACQUIRES STRATEGIC NICKEL-COPPER-COBALT
PROJECT IN CANADA
The Board of Directors of Pancontinental Gold Corporation (TSX -V:PUC) (“Pancontinental” or
the “Company”) is pleased to announce that it has entered into an opti on agreement (the
“Agreement”), effective January 10, 2018 with 2522962 Ontario Incorporated, to acquire a 100%
interest in the Montcalm West Nickel-Copper-Cobalt Project. The Montcalm West Project is
located in the Porcupine Mining Division, approximately 65 k ilometers northwest of Timmins ,
Ontario, Canada.
The Montcalm West Project is comprised of two separ ate properties , the Montcalm and Nova
Properties. The Montcalm Property is contiguous and surrounds the western portion of the former
Montcalm Mine, which had historical production of 3,931,610 tonnes of ore grading 1.25% nickel
(Ni), 0.67% copper (Cu), an d 0.051% cobalt (Co), and which produced in excess of 4 million
pounds of Cobalt (Ontario Geological Survey, Atkinson, 2011). T he Nova Property is located
approximately 19 kilometers southwest of the mine. The Montcalm Property consists of 16
contiguous mining claims (3 ,312 hectares) and the Nova Property is made up of 4 contiguous
mining claims (672 hectares).
The Company has the right to earn a 100% interest in the Montcalm West Project in exchange for
cash payments totalling $140,000 and the issuance of a total of 1,200,000 common shares in four
equal payments over a three -year period. The claims are subject to a 2.5% net smelter return
(NSR). The Company reserves the right to purchase 1% NSR for $1 million. The Agreement is
subject to regulatory approvals.
“We are excited to acquire this strategic Canadian project, allowing our shareholders to benefit
from exposure to three key battery metals in addition to our gold assets in the southeastern United
States,” said Layton Croft, Pancontinental President and Chief Executive Officer. “Nickel, copper
and co balt are all in strong demand due to electric vehicle and battery demand growth. This
acquisition, combined with our Jefferson Gold Project in South Carolina, creates a portfolio of
highly prospec tive North American strategic gold and battery metals projects located in close
proximity to current and past producing mines, and with low political, social and environmental
risk profiles.”
The Rise of Battery Metals
A key aspect of the Montcalm West Project is its high potential for cobalt, also known as ‘blue
gold.’ According to Bloomberg, cobalt prices increased 120% in 2017, and cobalt is forecast to
experience up to a 4,500% surge in global demand from now to 2030. Cobalt, primarily mined as
a by -product of nickel and copper, is important as a key input for batteries, and thus electric
vehicles. A laptop computer contains approximately one ounce of cobalt, while an average electric
car battery typically contains more than 30 pounds of cobalt, according to Bloomberg. Nickel and
365 Bay St, Suite 400
Toronto, Ontario
M5H 2V1
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copper are also essential to battery and electric vehicle production. According to the International
Energy Agency, global electric vehicle sales were about 2 million units in 2016, and annual sales
are expected to grow to 20 million by 2020, and to 70 million per year by 2025.
Pancontinental: A Growing Company
The Montcalm West Project allows Pancontinental to prudently expand its commodity f ocus,
taking advantage of rising demand and value for cobalt, nickel and copper. Adding the Montcalm
West Project to Pancontinental’s portfolio is a timely strategic acquisition. Like the Jefferson gold
Project in South Carolina, the nickel-copper-cobalt Montcalm West Project is:
A highly prospective project adjacent to a former mine in a proven historic mining region that
is underexplored; and
Located in a safe, low -risk jurisdiction with a stable, predictable and pro -mining legal,
regulatory and political regime, excellent infrastructure, and strong community support.
Montcalm West Project Highlights
Montcalm Property:
Pancontinental’s Montcalm West Project covers 3,984 hectares of the Montcalm Gabbro
Complex. The property is contiguous and surrounds the western portion of the former
producing Ni-Cu-Co Montcalm Mine. The gabbro-hosted Montcalm Mine and the surrounding
Montcalm Gabbro Complex host geology bear a distinct geological resemblance to other
known gabbro-hosted Ni-Cu-Co deposits and former mines in Canada. This suggests excellent
potential for new discoveries.
The current Pancontinental boundary is approximately 1 kilometer west of the former
Montcalm Mine . On Pancontinental’s land holdings , previous owners left numerous near -
surface, high priority, untested geophysical electromagnetic conductors. Historical drilling also
intersected zones of anomalous nickel and copper mineralization.
Nova Property:
The main highlight of the Nova Property is the presence of numerous highly anomalous
historical cobalt samples associated with sulphide mineralization in surface outcrops. Of
particular interest is a historical occurrence which returned 6.46 pounds of cobalt per ton ne
(3,230 ppm Co) in a single surface rock sample taken by a Teck Corporation geologist in 1991.
This sample is a selected sample and it not ne cessarily representative of the mineralization
hosted on the property.
Past operators on this property also detected substantial sulphide mineralization in surface
trenches and limited drilling of geophysical targets. There is no record of sampling of th e
sulphide occurrences for nickel, copper or cobalt in drill holes.
Government airborne geophysical surveys have outlined numerous untested electromagnetic
anomalies in association with strong magnetic responses across the property. These targets
require further evaluation for their cobalt -nickel-copper potential, as they represent excellent
targets in proximal known surface cobalt mineralization.
The reader is cautioned that the reported information above is historical in nature, and taken from
government assessment file reports by previous property operators and from government
publications, all of which pre-date NI-43-101. This information is understood to be reliable, but
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the Company has not yet completed sufficient work to verify this information as of the date of this
press release. The Company obtained the information with respect to the adjacent Montcalm Mine
through publicly available documents, however, it has not verified the information and the historic
information with respect to the Montcalm Mine is not necessarily indicative of the mineralization
on the Montcalm West Project.
Exploration Plans
Due to the limited outcrop exposure on the Montcalm Property , Pancontinental intends to fly a
state of the art VTEM (electromagnetic survey) and airborne gravity survey to detect potential
targets at depth. Documentation from the Montcalm Mine shows that the deeper lenses in the mine
start at 250 meters below surface. Modern VTEM technology and newly develop ed air borne
gravity systems have the capability to search below 200 meters . Pancontinental’s work will be
conducted in conjunction with an evaluation of higher priority near -surface geophysical targets
that were left untested by previous operators. Upon completi on of this work the higher priority
targets will be selected for drill testing.
At the Nova Property, the C ompany plans to conduct preliminary prospecting efforts over key
portions of the property to fully evaluate known cobalt mineralization. This work will be conducted
along with a mobile metal ion geochemical survey, to assist in evaluation of areas without exposure
but proximal to known cobalt occurrences. This initial program has been designed to evaluate the
Nova Property for a potential near-surface bulk tonnage deposit.
Qualified Person
The Company has not yet completed the work necessary to verify the historical data and past
exploration results, as they pre-date National Instrument 43-101 standards. In addition, a Qualified
Person has not yet completed sufficient work to verify these historical data and results. 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 J. Kevin Filo, PGeo,
a Qualified P erson as defined by NI 43 -101 and a technical advisor for Pancontinental Gold
Corporation.
Option Grant
The Company also announces that it has granted 1,200,000 options to a Company officer/director
and a consultant to purchase common shares at an exercise price of $0.05 cents per common share,
expiring on January 10, 2023.
About Pancontinental Gold Corporation
Pancontinental Gold Corporation is a Canadian-based mining company focused on the exploration
and development of its 100% -owned Jefferson gold project in South Carolina, USA, and its
Montcalm West nickel-copper-cobalt project in Ontario, Canada. The Company continues to focus
on acquiring additional prospective properties in low-risk areas in proximity to producing mines.
The Company’s shares are listed on the TSX Venture Exchange, trading under the symbol PUC.
In 2015, Pancon tinental 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 production.
ON BEHALF OF THE BOARD OF DIRECTORS
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Layton Croft
For further information, please contact:
Layton Croft
President and CEO
1-416-293-8437
1-980-309-8419 [email protected]
For additional information please visit our web site: www.pancongold.com, and our Twitter feed:
@PanconGold.
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 fact s. 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.