SKRR Exploration Inc. Signs Definitive Agreement to Acquire the Cathro GOLD Project, Saskatchewan
SKRR EXPLORATION INC. SIGNS DEFINITIVE AGREEMENT TO ACQUIRE THE
CATHRO GOLD PROJECT, SASKATCHEWAN
February 12, 2020 - Vancouver, B.C.: SKRR Exploration Inc. ( TSXV:SKRR) (“ SKRR” or the
“Company”) is pleased to announce it has signed an option agreement to acquire 100% of the Cathro
gold exploration project located approximately 50km northeast of La Ronge, Saskatchewan (the “Cathro
Project”) from Eagle Plains Resources Ltd. (the “Vendor”).
Cathro Project Overview & History
The 3,277 ha Cathro property covers a suite of LaRonge Greenstone Belt volcanic rocks known to host
structurally-controlled gold mineralization including the historic Contact Lake Deposit (SMDI 0619),
located approximately 10km south of the property. The first mineralization in the area was identified by
prospectors in 1958. During the 1960’s Great Plains identified Au-bearing quartz shears associated with
metavolcanic rocks. They completed airborne EM and magn etic geophysical surveys, followed up by
geological mapping and trenching and a shallow 7-hole diamond drilling program. The area was mostly
dormant until the late 1980’s when Cogema became active in the area. The last significant work program
was in 1994 by Uranerx Exploration who identified a number of target area using soil sampling and
prospecting.
There are four documented gold occurrences within the claim boundaries. Vidgy Lake (SMDI 2294) has
seen the most historic work. The Vidgy Lake mineralization is associated with a 100m -wide by 2km -
long shear zone developed along an intrusive –metavolcanic contact. Quartz veins within the shear zone
commonly carry visible gold. Highlights from a 1988 program by Cogema returned the following results:
Sample # Sample Type Au g/t Description
492RR-1404 grab 72 quartz in meta volcanics
492RR-1406 grab 100 grey quartz
492RR-1452 chip (width unknown) 21.2 quartz veining
492RR-1456 chip (width unknown) 29.2 quartz with visible gold
492RR-1459 grab 18.8 quartz with visible gold
492RR-2013 grab 38.7 quartz with visible gold
Cogema exposed the main Vidgy Zone over a strike length of 21m with a maximum vein width of 2.5m.
Five lines of continuous chip samples collected at 4.0m intervals across the Vidgy structure returned the
following results:
Chip Sample Width (m) Au in g/t
2.0 8.1
2.7 4.4
2.5 5.6
2.0 1.5
2.0 0.93
In 1989, Cogema followed up with an eight-hole, shallow-depth drill program which returned best results
of 2.03 g/t Au over 0.7 m and 1.16g/t Au over 1.5m.
Highlights from the other documented occurrences include:
SMDI 2295 Beranek North: 6.6 g/t Au from a 1m chip sample
SMDI 2269 Beranek South: 9.2 g/t Au from a grab sample of sheared quartz
SMDI 2296 Bartlett Lake: 9.36 g/t Au from a panned soil sample
The above results were taken directly from the Saskatchewan Mineral Deposit Index “SMDI”, a
searchable database m aintained by Saskatchewan Ministry of Energy and Resources that contains
individual reports on known mineral showings within Saskatchewan. The Ministry cautions that although
reasonable care is taken in compilation of results, all persons who rely on the SMDI information do so at
their own risk. The assay results are historic in nature and pre-date rules as per NI 43-101 Standards of
Disclosure for Mineral Projects. A qualified person has not done sufficient work to classify the historical
results as current and SKRR is not treating the historical results as current. SKRR has not verified the
assay results nor has SKRR done the drilling and sampling necessary to verify the assay results. SKRR
cautions that past results or discoveries on proximate land are not necessarily indicative of the results that
may be achieved on the subject properties.
Terms of the Option Agreement
Under the terms of the option agreement, SKRR may acquire a 100% interest in the Cathro Project by
making certain staged cash payments and share payments of common shares in the capital of SKRR to
the Vendor.
a. Cash payable:
i. CAD$4,000 upon receipt of TSX Venture Exchange approval of the Option
Agreement (the “Approval Date”);
b. SKRR common shares:
i. 250,000 on the Approval Date;
ii. 250,000 on or before the 1st anniversary of the Approval Date;
iii. 100,000 on or before the 2nd Anniversary of the Approval Date;
iv. 100,000 on or before the 3rd Anniversary of the Approval Date;
v. 100,000 on or before the 4th Anniversary of the Approval Date; and
vi. 100,000 on or before the 5th Anniversary of the Approval Date.
c. Net Smelter Returns Royalty (“NSR Royalty”):
i. 2.0% NSR Royalty to the Vendor with SKRR’s option to repurchase 1.0% NSR
Royalty for CAD$1.0 million, leaving the Vendor with a 1% NSR Royalty.
Qualified Person
The scientific and technical information contained in this news release has been reviewed and approved
by Ross McElroy P.Geo, a director of the Company and a “Qualified Person” as defined in National
Instrument 43-101 – Standards of Disclosure for Mineral Projects.
About SKRR Exploration Inc.:
SKRR is a Canadian-based precious metal explorer with properties in Saskatchewan - one of the world’s
highest ranked mining jurisdictions. The primary exploration focus is on the Trans -Hudson Corridor in
Saskatchewan in search of world class precious metal deposits. The Trans-Hudson Orogen - although
extremely well known in geological terms has been significantly under -explored in
Saskatchewan. SKRR is committed to all stakeholders including shareholders, all its partners and the
environment in which it operates.
ON BEHALF OF THE BOARD
Sherman Dahl
President & CEO
Tel: 250-558-8340
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 release.
Forward-Looking Information
This news release contains “forward‐looking information or statements” within the meaning of applicable securities laws,
which may include, without limitation, statements that address the TSX Venture Exchange approval of the option
agreement, conduct explo ration work on the Cathro Project, other statements relating to the technical, financial and
business prospects of the Company, its projects and other matters . All statements in this news release, other than
statements of historical facts, that address events or developments that the Company expects to occur, are forward-looking
statements. Although the Company believes the expectations expressed in such forward-looking statements are based on
reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially
from those in the forward -looking statements. Such statements and information are based on numerous assumptions
regarding present and future business strategies and the environment in which the Comp any will operate in the future,
including the price of metals, the ability to achieve its goals, that general business and economic conditions will not
change in a material adverse manner, that financing will be available if and when needed and on reasonab le terms. Such
forward-looking information reflects the Company’s views with respect to future events and is subject to risks,
uncertainties and assumptions, including those filed under the Company’s profile on SEDAR at www.sedar.com. Factors
that could cause actual results to differ materially from those in forward looking statements include, but are not limited
to, continued availability of capital and financing and general economic, market or business conditions, adverse weather
conditions, failure to maintain all necessary government permits, approvals and authorizations, failure to maintain
community acceptance (including First Nations), increase in costs, litigation, and failure of counterparties to perform
their contractual obligations. The Company does not undertake to update forward‐looking statements or forward‐looking
information, except as required by law.