Sienna Resources Inc. Acquires Past Producing Orogenic Gold Project in Norway
Sienna Resources Inc. Acquires Past
Producing Orogenic Gold Project in Norway
Vancouver, British Columbia--(Newsfile Corp. - August 27, 2020) -
Sienna Resources (TSXV: SIE)
(WKN: A1XCQ0) (FSE: HRJ1) (OTC Pink: SNNAF) (the "Company")
is pleased to announced that
it has entered into an option agreement with EMX Royalty Corporation (NYSE: EMX) (TSXV: EMX) to
acquire the "Bleka and Vekselmyr Gold Projects" in Norway.
These projects are greenstone-hosted gold
systems in southern Norway (see Figure 1). In particular, the Projects were acquired on the basis of past
gold production at Bleka from historic mining activities and the documentation of outcropping gold
mineralization in orogenic-style veins at Vekselmyr. Both Projects contain extensions of the structures
that host gold mineralization that have not been tested by historic exploration programs.
This now gives
Sienna 4 separate projects in Scandinavia.
Figure 1: Sienna Property
To view an enhanced version of Figure 1, please visit:
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Jason Gigliotti, President of Sienna states, "This is a tremendous opportunity for Sienna to acquire a
high quality gold project in a politically stable, mining friendly jurisdiction. We have been searching for a
high quality, high potential gold project and we feel these two new gold targets provide this to Sienna
immediately.
This gold belt has been underexplored and we plan to commence work right away.
There is
a 3 km unique vein swarm within this greenstone hosted orogenic plug with a folded nose formation.
This
area is highly prospective for gold and we plan to focus on this area.
We are extremely optimistic about
Sienna's short and long term prospects when you factor this new project coupled with work expected to
commence shortly on our Finland and Ontario projects at a time when we just closed an oversubscribed
placement of 2 million dollars.
Sienna will be very active at a time of historically high commodity prices,
including gold recently making new all-time highs."
Overview of the Projects
. The Projects are located in an underexplored greenstone belt in southern
Norway with areas of historic gold production and documented gold occurrences. The Bleka Vein was
discovered in 1880 and mined intermittently until 1940, with historic production reported as 165
kilograms (i.e., ~ 5,300 troy ounces) of gold sourced from mineralized material with an average grade of
36 g/t gold.
1
The Bleka project covers the historic mining area and swarms of similar veins that extend
for at least three kilometers along strike. The nearby Vekselmyr license covers outcropping gold
mineralization in similar orogenic-style veins.
Figure 2: Bleka Gold Project
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Figure 3: Bleka Gold Project
To view an enhanced version of Figure 3, please visit:
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Figure 4: Vekselmyr Gold Project
To view an enhanced version of Figure 4, please visit:
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Vekselmyr Gold Project
*Historic assay values quoted above are from the NGU, from (Report No. 84-23-
38, 1984). SIE has not performed sufficient work to verify the published data reported above, but SIE
believes this information is considered reliable and relevant. (NGU Deposit Area 911-010)
Summary of Commercial Terms.
Sienna can earn a 100% interest in the Bleka and Vekselmyr
Projects in Norway, subject to 3% NSR royalty interests retained by EMX, by:
Issuing an additional 500,000 shares of SIE to EMX within 5 days upon exchange approval;
Spending a minimum of C$250,000 per year
on exploration on the Projects over the next two
years;
Reimbursing EMX for its acquisition costs and expenses related to the Bleka and Vekselmyr
Projects; and,
Issuing 1,500,000 additional shares of SIE to EMX at the end of the two-year option period.
If Sienna satisfies the earn-in conditions of the Agreement and elects to acquire the Projects, EMX will
receive annual advance royalty ("AAR") payments of US$25,000 for each property commencing on the
first anniversary of the option exercise date, with each AAR payment increasing by US$5,000 per year
until reaching a cap of US$75,000 per year.
Under certain conditions, 0.5% of the 3% NSR royalties retained by EMX can be repurchased by
Sienna.
This agreement consists of an execution of an amendment to its option agreement with Sienna
Resources Inc. (TSXV: SIE) ("Sienna"), originally signed in December, 2017 for the Slättberg nickel-
copper-cobalt-PGE (Ni-Cu-Co-PGE) project in southern Sweden.
The amendment
adds EMX's Bleka
and Vekselmyr projects in southern Norway (the "Projects") to the Option Agreement (the "Agreement"),
whereby Sienna will enter a two year option period to acquire 100% interest in the Projects by satisfying
work commitments and making payments of cash and equity to EMX, with EMX retaining 3% net smelter
returns ("NSR") royalty interests.
The technical contents of this release were approved by Greg Thomson, PGeo, a qualified person as
defined by National Instrument 43-101.
*Historic assay values quoted above are from the NGU however
SIE
has not performed sufficient work to verify the published data reported above, but SIE believes this
information is considered reliable and relevant.
If you would like to be added to Sienna's email list please email
for
information or join our twitter account at @SiennaResources.
Contact Information
Tel:
1.604.646.6900
Fax: 1.604.689.1733
www.siennaresources.com
"Jason Gigliotti"
President, Director
Sienna Resources Inc.
Neither the 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 press release.
1
Gamst & Thomsen (1998) Gold Exploration in The Seljord and Hjartdal area of Telemark, Southern
Norway, Norwegian Geological Survey Report 4655
(
https://dirmin.no/sites/default/files/bibliotek/BV4655.pdf
). Bleka Gold Mine in Seljord, Telemark,
summary report 1998, Norwegian Geological Survey Report BV4654
(
https://dirmin.no/sites/default/files/bibliotek/BV4654.pdf
) *Historic assay values quoted above are from
the NGU, from (Rapport nr 4661). SIE
has not performed sufficient work to verify the published data
reported above, but SIE believes this information is considered reliable and relevant. (BV4661.PDF)
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