Searchlight Resources Acquires Cobalt Vanadium Property in Saskatchewan
TSXV:
SRCH
Suite 408 – 1199 West Pender Street • Vancouver, B.C. • V6E 2R1
TEL (604) 331-9326 • FAX (604) 684-9365
Searchlight Resources Acquires Cobalt
Vanadium Property in Saskatchewan
• Acquisition of the Duddridge Lake Cobalt-Vanadium-Uranium Project
• Boulder Samples with up to 1,460 ppm (0.146%) Cobalt
• Boulder Samples with up to 5,500 ppm (0.55%) Vanadium
• Claims also host the Duddridge Lake Uranium deposit
Vancouver, British Columbia, December 04, 2018 - Searchlight Resources Inc. (“Searchlight” or
the “Company”) (TSX-V: SRCH) is pleased to announce that Searchlight has acquired a 100%
interest in the Duddridge Lake Cobalt-Vanadium-Uranium Project (“Duddridge” or the “Property”)
located approximately 75 kilometers northwest of La Ronge and 400km north of Saskatoon
Saskatchewan.
“We have elected to bring this project into our portfolio as a 2012 exploration program on
Duddridge identified high grade cobalt and vanadium results (see Table 1 below). With the
increasing interest in battery technology utilizing both vanadium and cobalt the Duddridge project
represents an excellent project for Searchlight’s team to explore. In addition, Duddridge fits the
company focus of quality projects in Saskatchewan with access by road,” notes Stephen Wallace,
CEO and President of Searchlight.
The Duddridge Cobalt -Vanadium-Uranium Project consists of 4 mineral claims totaling 3,051.6
hectares accessible by an all -season gravel road ( Highway 910) to with in 12 km of the project
and with direct access to the project by winter road and ATV trail in summer.
To date, no exploration has ever focused on the cobalt or vanadium in this region of
Saskatchewan. In 2007, Fission Energy Corporation (“Fission”) announced a historical inferred
resource estimate of 227,880 tonnes with a grade of 2.14 lbs/tonne U3O8 (see details below).
Subsequently, during uranium exploration by Fission in 2012, a total of 39 boulder samples were
collected and analyzed for a wide package of elements. The results of boulder analysis showed
highly anomalous results for cobalt and vanadium, two elements that were not of widespread
exploration interest in 2012. In addition, the sample results show anomalous copper, lead and
uranium levels. At that time of exploration, the focus was primarily for uranium. Of note, sample
DD12-HW-029 assayed 1,310 ppm Co and 1,560 V; sample DD12 -SH-012 assayed 1,460 Co
and 746 ppm V; sample DD12-WM-002 assayed 567 ppm Co and 5,550 ppm V plus 4,440 ppm
Pb and 15,100 ppm U.
.
Location of Duddridge Lake claims in Northern Saskatchewan
Table 1below shows the cobalt, vanadium, copper, lead and uranium assays of the 39 boulder
samples collected by Fission in 2012. The data was derived from Appendix 3 of the Saskatchewan
Mineral Assessment report MAW00145 submitted on March 29 th, 2013 by Fission Energy Corp.
Titled “2012 AIRBORNE GEOPHYSICAL SURVEYING and OUTCROP, BOULDER & SO IL
SAMPLING ON THE DUDDRIDGE LAKE PROPERTY”.
These boulder sample results are historical in nature and Searchlight has not undertaken any
independent investigation of the sampling nor has it independently analyzed the results of the
previous exploration work in order to verify the results. Searchlight considers these sample results
relevant as the Company uses historical reports to evaluate and historic sample results as a guide
to plan future exploration programs.
0 Boulder Sample No. Co ppm Cu ppm Pb ppm U ppm V ppm
1 DD12-AC-001 910 276 1110 1870 1580
2 DD12-AC-002 4 13 42 8 59
3 DD12-AC-003 382 415 2190 10700 1160
4 DD12-AC-004 42 244 236 564 1330
5 DD12-AC-005 7 1480 3060 9700 728
6 DD12-AC-006 58 592 726 58 485
7 DD12-AC-007 34 220 290 1730 353
8 DD12-AC-008 5 438 476 1370 482
9 DD12-AC-010 4 89 5550 16500 375
10 DD12-AC-011 156 301 239 710 422
11 DD12-AC-016 5 143 1290 3870 804
12 DD12-AC-030 13 6950 31 10 15
13 DD12-AC-154 3 5 33 <2 25
14 DD12-HW-025 2 <1 15 4 42
15 DD12-HW-029 1310 377 1200 3330 1560
16 DD12-HW-031 1 165 1330 3880 125
17 DD12-HW-073 <1 1 67 3 3
18 DD12-HW-076 8 24 192 422 70
19 DD12-JL-001 3 316 40 87 52
20 DD12-JL-002 2 6290 506 1390 35
21 DD12-JL-003 6 928 696 1950 63
22 DD12-PR-001 73 130 41 35 105
23 DD12-PR-002 79 184 52 19 26
24 DD12-PR-004 10 133 221 918 2750
25 DD12-PR-007 <1 6 76 16 2
26 DD12-PR-008 2 336 118 502 202
27 DD12-PR-011 3 815 4650 9970 245
28 DD12-PR-012 418 575 561 6200 685
29 DD12-PR-018 151 813 1510 4080 1960
30 DD12-SH-012 1460 348 2160 6360 746
31 DD12-SH-013 75 1230 7110 19100 2990
32 DD12-SH-014 1 117 1180 4920 3240
33 DD12-SH-015 173 156 318 831 793
34 DD12-WM-001 2 10 11 <2 42
35 DD12-WM-002 567 511 4440 15100 5500
36 DD12-WM-003 250 336 1380 3070 1480
37 DD12-WM-035 13 76 134 138 86
38 DD12-PR-012 5 1520 5080 10400 476
39 DD12-PR-001 602 43 182 135 139
Highlighted > 500 ppm > 1,000 ppm > 4,000 ppm > 10,000 ppm > 1,000 ppm
Terms of the Acquisition Agreement
The Duddridge Project is being acquired from two arms-length individuals with the following terms
of acquisition;
1) Payment of $4,000 in two payments
• Payment of $2,000 on signing of agreement
• Second payment of $2,000 on closing
2) Issuance of 500,000 shares of Searchlight Resources Inc. to vendors on closing
Under the terms of the Agreement, Searchlight will pay a 1.0 % Net Smelter Return royalty (the
“NSR”) to the Vendors on commencement of commercial production. Searchlight has the right, at
any time prior to six months after completion of a feasibility study to purchase the first 0.5 % of
the 1.0% NSR for $1,000,000 and the second 0.5 % of the 1.0% NSR for $1,500,000 for a total
buyout of $2,500,000.
This Agreement is subject to approval by the TSXV and a 60-day due diligence period by
Searchlight.
Geology/ Exploration.
This region of Saskatchewan has been a target of uranium exploration since the late 1960’s with
a series of surface sampling, geophysics and drilling programs by companies including Noranda,
SMDC and Fission.
The Duddridge Lake Property is described as stratabound uranium and copper mineralization
with abundant polymetallic mineral occurrences associated with basal quartz conglomerate and
carbonaceous- bearing lenses in red bed (hematitic ) arkose. The style of mineralization present
appears to have ore bearing minerals consistent with both vein type and unconformity -type
deposits with nickel and cobalt arsenides. The two styles of mineralization have similarities based
on association with structures, including faults and unconformities.
The map below shows the area of boulder sampling in relation to known mineralization. The
boulder samples represent potential up ice mineralization which will be explored by Searchlight
in 2019. In addition, a sec ond parallel 10 km long electromagnetic conductor needs to be
explored.
Map showing area of Boulder Train relative to Duddridge claims
Duddridge Lake Uranium Deposit
The Duddridge claims host the Duddridge Lake Uranium deposit, a 43 -101 inferred resource
estimate completed in 2007 by Fission Energy Corp. The 43-101 technical report titled “Report
on the Duddridge Lake Uranium Property Northern Saskatchewan NTS 73O/9 submitted by Stuart
C. Fraser, P. Geol. on June 15, 2007 reports an inferred mineral resource of 227,880 tonnes with
a grade of 2.14 lbs/tonne U3O8.
The Duddridge Lake Uranium deposit technical report was not commissioned or completed by
Searchlight and therefore is being treated as a historical resource estimate under 43-101
disclosure. The historical resource estimate used “inferred mineral resource”, which is a
category of NI 43-101. As a result, Searchlight considers the historical resource estimate as
reliable as well as relevant as it represents a key target for work to be done by Searchlight.
Searchlight has not undertaken any independent investigation of the resource estimates nor has
it independently analyzed the results of the previous exploration work in order to verify the
resources and the Company is not treating the historical estimate as a current resource.
This report is available on Sedar.
Qualified Person
Stephen Wallace, P.Geo., is Searchlight's Qualified Person within the meaning of National
Instrument 43-101 and has reviewed and approved the technical information contained in this
news release.
About Searchlight Resources Inc.
Searchlight Resources Inc. (“Searchlight” or the “Company”) is a professional mineral exploration
and development company listed on the Toronto Venture Exchange (TSXV). The company is
active with mineral exploration projects in Saskatchewan, Ontario and Nevada, three of the top
seven jurisdictions in the world for minin g investment as ranked by the Fraser Institute. The
Company holds a portfolio of gold, cobalt and base metal projects from grassroots stage to
advanced exploration and NI43-101 resource development.
Saskatchewan – Gold and Base Metals
The Bootleg Lake project is 16,900 hectares of claims in Saskatchewan covering prospective
areas of the Flin Flon Greenstone Belt. Exploration is being carried out at the past producing
Newcor, Rio (Bootleg) and Henning Maloney Gold mines located approximately 5 kilometres from
Creighton, Saskatchewan, less than 10 kilometres from the Hudbay 777 mine located in Flin Flon,
Manitoba, and in the region of the four past producing base metal mines Flexar, Birch Lake, Amisk
and Coronation.
Ontario – Copper, Cobalt and Nickel
1) The Munro Warden project is an early stage exploration prospect targeting VMS copper,
nickel and cobalt within the Kidd - Munro assemblage of the Abitibi Greenstone Belt. The
project covers 1,100 hectares including 9 mining lease s and 11 claim -blocks locate d
approximately 90 kilometres east of Timmins, Ontario.
2) The Cameron project is a grassroots cobalt exploration prospect located 25 kilometres
southwest of Cobalt, Ontario within the highly prospective Cobalt Embayment.
Nevada - Copper
Searchlight’s Nevada project New York Canyon, hosts two copper deposits in the Walker Lane
Structural Belt located in western Nevada; the Long Shot Ridge skarn deposit with a 2010 NI43-
101 resource estimate and the Copper Queen porphyry deposit drilled out by Con oco in the
1970’s.
On behalf of the Board of Directors,
“Stephen Wallace”
SEARCHLIGHT RESOURCES INC.
Stephen Wallace, President, CEO and Director
Contact: Searchlight Resources Inc.
Investor Relations
(604) 331-9326
Forward-Looking Statements
Information set forth in this news release contains forward -looking statements that are based on
assumptions as of the date of this news release. These statements reflect management’s current
estimates, beliefs, intentions and expectations. They are not gu arantees of future performance.
The Company cautions that all forward looking statements are inherently uncertain and that actual
performance may be affected by a number of material factors, many of which are beyond the
Company’s control. Such factors include, among other things: risks and uncertainties relating to
the Company’s limited operating history and the need to comply with environmental and
governmental regulations. Accordingly, actual and future events, conditions and results may differ
materially from the estimates, beliefs, intentions and expectations expressed or implied in the
forward-looking information. Except as required under applicable securities legislation, the
Company undertakes no obligation to publicly update or revise forward-looking information.
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