Searchlight Resources Options 4 Claims in Saskatchewan from Diamond Projects
TSXV : SRCH
Suite 408 – 1199 West Pender Street • Vancouver, B.C. • V6E 2R1
TEL (604) 331 - 9326 • FAX (604) 684 - 9365
Searchlight Resources Options 4 Claims in
Saskatchewan from Diamond Projects
4 claims optioned covering 654 hectares adjoining Bootleg Lake claims
Gold and VMS exploration targets on new claims
P hantom Ledge Lake Gold target with past drill results includ ing 0.655 oz/t
(20.37 g / t) Au over 0.5 metres and 0.401 oz/t (12.47 g/t) Au over 0.5 metres
Curve Lake VMS target with assays of 3.13% Cu, 1 . 16% Ni and 0.06% Co
Right of First Refu sal granted to SRCH on additional area cl aims
Vancouver, British Columbia, October 4 th , 201 8 - Searchlight Resources Inc.(“Searchlight” or
the “Company”) (TSX - V: SRCH ) is pleased to announce that it has entered into an option
agreement ( the " Option ") with Diamond Projects Inc . a private Saskatchewan company, to earn
a 1 00 % interest in four claims (the “Property” or the “ Claims ”) located near Creighton,
Saskatchewan, Canada, five kilometres southwest of the city of Flin Flon, Manitoba.
Searchlight has optioned 4 mineral claims totaling 65 4 hectares that adjoin the Comp any’s
existing Bootleg Lake claims , building the Company’s core land position . (See map below) The
new ly optioned claims cover historical gold and v olcanogenic m assive s ulphide ( “ VMS ”) base
metal showings , including the Curved Lake VMS and Phantom Ledge Lake Gold targets
hi ghlighted below.
Terms of the Option Agreement
To earn 100% interest in the Claims, subject to a 1% NSR, Searchlight must maintain
the claims in good standing and complet e 12 years of assessment expenditures on the
claims. The assessment expenditure requirements are outlined in the Saskatchewan
regulation document “ The Mineral Tenure Registry Regulations ”
Once the 100% interest is earned, Diamond Projects will retain a 1% NSR.
Claim No. Area (ha.)
MC00006104 196
MC00010965 134
MC00006095 96
MC00006098 228
Further if any Claims optioned by Searchlight from Diamond Projects are sold or
optioned by Searchlight to a third party, Diamond Projects is to receive 25% of all cash
and share payments.
The agreement allows Searchlight to modify the size of optio ned claims by adding or
removing claim units during the life of the O ption.
Any claims or claim units returned to Diamond Project will have a least one year
remaining before Good Standing Date .
This Agreement is subject to approval by the TSXV
Stephen W allace , President and CEO of Canyon stated , “This option agreement adds
significant VMS and gold exploration potential close to the Company’s core Bootleg Lake claims
and fits with the Company’s long - term consolidation plan in the geologically important Cr eighton
- Denare Beach area. ”
Right of First Refusal
In addition to the option agreement, Diamond h as granted Searchlight a Right of First Refusal
(“RoFR”) for Diamond mineral claims on NTS Map Sheet 63L and the portion of NTS Map Sheet
63K located in Saskatchewan. The right extends to all 100% owned Diamond claims in this area
apart from two claim area s being explored and advanced by Diamond.
The RoFR provides that any additional claims optioned by Searchlight will be under the same
terms as the first option presented above.
Stephen Wallace, President and CEO of Canyon stated “this right allows Searchli ght to option
claims from one of the largest set s of staked mineral claims in Saskatchewan and the security of
knowing in advance the terms for option. This is the beginning of what we hope is a long and
successful working relationship with Mr. Spelliscy.”
Diamond Projects Inc
Diamond Project s Inc. is wholly controlled by Mr. Shaun Spelliscy who also controls Gem Oil
Inc. a 19. 6 % shareholder of Searchlight. As such Gem Oil is an insider of Searchlight and this
transaction is subject to the acceptance of the TSXV .
Diamond Projects and GEM Oil are e xploration companies active in staking, evaluating and
holding mineral claims in Saskatchewan. At present these companies hold over 1.3 million
hectares of mineral claims throughout the province , one of the largest single claim holder s .
Historical S howi ngs on Optioned Claims
The newly optioned claims host several historical exploration targets, the two of most important
are the highlighted below and shown on map below.
Curved Lake Zone
The Curved Lake Zone A is a Volcanogenic Massive S ulfide target (“VMS”) target on claim
M C00006104 which had been explored sporadically between 1952 and 1996 with surface
trenches and shallow drill holes. Assays from trenching include samples assaying 3.13%
Copper, 1 . 16% Nickel and 0.06% Cobalt. Data from Saskatchewan Mineral Deposit Index –
Property #: 0144
Phantom Ledge Lakes
The Phantom Ledge Lakes is a Structurally - Controlled Mesothermal Gold target on claim
MC00010965 located approximately 4 kilometres south east of the Rio (Bootleg) past producing
gold mine drilled by Searchlight in ear ly 2018. Below are selected drill results from exploration
by the Saskatchewan Mining Development Corporation (SMDC) between 1986 and 1988.
Drill Hole From To Width Au Au
metres metres metres oz/t g/t
calculated
PN7D - 06 25.6 26.2 0 .6 0.049 1.52
26.8 27.4 0.6 0.057 1.77
27.4 28 0.6 0.03 0.93
82.6 82.7 0.1 0.023 0.72
110.3 111.3 1 0.04 1.24
PN8D - 21 35.3 35.8 0.5 0.016 0.50
39.6 40.1 0.5 0.655 20.37
PN8D - 22 51 51.5 0.5 0.035 1.09
55 55.5 0.5 0.057 1.77
55.5 56 0.5 0.249 7.74
PN8D - 23 60 60.5 0.5 0.08 2.49
64.5 65 0.5 0.048 1.49
68.5 69 0.5 0.401 12.47
Data from Saskatchewan Mineral Deposit Index – Property #: 2325
Locat ion Map showing the Curved Lake VMS and Phantom Ledge Lake Gold targets
Qualified Person
Stephen Wallace, P.Geo., is Searchlight's Qualified Person within t he 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 professional mineral explora tion
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 mining investment as ranked by th e Fraser Institute. The
Company holds a portfolio of gold, cobalt and base metal projects from grassroots stage to
advanced exploration and NI 43 - 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 a nd less than 10 kilometres from the Hudbay 777 mine located in
Flin Flon, Manitoba.
In addition, the Bootleg Lake claims hold Volcanogenic Massive Sulphide (VMS) base metal
potential with claims adjacent to the Hudbay Mines claims hosting the producing 7 77 base metal
and gold mine in Flin Flon and the four past producing base metal mines, Flexar, Birch Lake,
Amisk and Coronation.
Ontario – Copper, Cobalt, Nickel & Gold
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 and 11 claims blocks located
approximately 90 kilometres east of Timmins, Ontario.
2) The Cameron project is a grass roots cobalt, gold exploration prospect located 25
kilometres southwest of Cobalt, Ontario with the highly prospective Cobalt Embayment
Nevada - Copper
Searchlight’s Nevada project New Yo r k Canyon hosts two c opper deposits in the Walker Lane
Structural Be lt 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 Conco 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 con tains 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 guarantees of future
performance. The Company ca utions 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
uncertainti es 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 e xpectations
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.
NEITHER TSX VENTURE EXCHANGE NO R 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.