Alianza Minerals and Cloudbreak Discovery Option out the Klondike Property, Colorado, to Allied Copper
Trading Symbol (TSX-V: ANZ)
410-325 Howe Street
Vancouver, British Columbia
Canada V6C 1Z7
Tel: (604) 687 3520
Fax: 1-888-889-4874
www.alianzaminerals.com
NR 21-22
Alianza Minerals and Cloudbreak Discovery Option out the Klondike Property, Colorado,
to Allied Copper
Vancouver, BC, December 7, 2021 - Alianza Minerals Ltd. (“Alianza”) (TSX -V: ANZ, OTCQB:
TARSF) and Cloudbreak Discovery Plc (“Cloudbreak”) (LSE: CDL) (the “Alliance”) are pleased to
announce the optioning of their first project to Allied Copper Corp. (“Allied”) (TSX-V: CPR), subject
to TSX Venture Exchange approval. The Klondike p roperty (the “Klondike Property”), located in
Colorado, United States, consists of 76 unpatented mining claims, a State of Colorado Exploration
Permit and an exclusive right to a State lease.
Klondike Option Agreement Highlights:
• Allied will incur an aggregate of CAD $4,750,000 in exploration expenditures on the property, with
at least CAD $500,000 to be spent prior to the first anniversary of the closing date.
• Allied will issue 7,000,000 common shares and make an aggregate of CAD $400,000 in cash
payments to the Alliance over a three-year period.
• Upon completion of these option agreement obligations, the Alliance will transfer 100% interest
in the Klondike Property to Allied. Allied will also issue 3,000,000 warrants exercisable for a
three year term at a price equal to the 10-day VWAP of Allied’s common shares at the time of
the issuance.
• The Alliance will retain a 2% net smelter royalty which is subject to a buy down provision where
Allied may, at its discretion, repurchase half of the royalty for CAD $1,500,000 within 30 days of
commercial production.
If Allied files on SEDAR an NI 43-101 technical report establishing the existence of a resource on any
portion of the Klondike Property of at least 50,000,000 tonnes of either copper or copper equivalent at
a minimum cut-off grade of 0.50% copper or copper equivalent and categorized as a combination of
inferred resources, indicated resources and measured resources , then Allied will also issue a further
3,000,000 warrants exercisable for a three year term at a price equal to the 10- day VWAP of Allied’s
common shares at the time of the issuance.
Jason Weber, President and CEO of Alianza Minerals, stated: “We welcome Allied as our new
partner. The Klondike Property is an excellent project and we are excited with the copper targets
outlined to date. We look forward to working with Allied as they aggressively test the West Graben,
East Graben and Northeast Fault targets in 2022.”
A recent reconnaissance program (see news release dated December 1, 2021) consisting of
mapping, stream sediment sampling and rock sampling was undertaken at the Klondike Property to
help define drill targets at the West Graben Fault and East Graben Fault targets. Rock sampling and
mapping successfully expanded the footprint of both targets and identified a new target named the
Northeast Fault. Sampling at the Northeast Fault returned 1.56% copper and 1.4 grams per tonne
(“g/t”) silver over a 4.6 metre chip sample of bleached, bitumen spotted and altered Jurassic
sandstones of the Saltwash member of the Morrison Formation.
Copper mineralized sandstones at the Northeast Fault target can be traced along the fault and
outboard from it into the adjacent sandstones over an area 200 metres long by 100 metres wide
before becoming obscured beneath gravel cover. Further anomalous copper, including 2.1 metres of
463 ppm copper, was encountered over one kilometre to the northwest where the structure and host
strata next appear from beneath the same gravel cover.
About the Klondike Property
The Klondike Property is located approximately 25 kilometres south of Naturita, Colorado. This
property lies withi n the Paradox Copper Belt, which includes the producing Lisbon Valley Mining
Complex. Numerous historical copper occurrences have been identified throughout the district,
however, many of these have not been explored using modern exploration techniques.
At Klondike, documented copper exploration ceased in the 1960s with subsequent exploration
targeting uranium the 1970s. Previous workers reported high- grade copper mineralization highlighted
by results of 6.3% copper and 23.3 g/t silver in outcrop. In addi tion to its high- grade potential,
disseminated copper -silver mineralization has been observed which may be amenable to modern
open pit mining with Solvent Extraction Electro Winning (“SXEW”) processing similar to the Lisbon
Valley Mining Complex. Sedimentary hosted copper deposits are an important contributor to world
copper production, accounting for more than 20% of the world’s copper supply annually.
The project is road accessible year -round, traveling two kilometres of gravel road from paved
highway. The project is comprised of 76 mining claims on Federal mineral rights managed by the
BLM, in addition to an Exploration Permit and an exclusive right to a State lease from the State of
Colorado.
Figure 1. Klondike Geology and Copper Results Map
About the Strategic Alliance
Under the terms of the Alliance, either Cloudbreak Discovery Plc or Alianza Minerals Ltd can
introduce projects to the Alliance. Projects accepted into the Alliance will be held 50/50 but funding
of the initial acquisition and any preliminary work programs will be funded 40% by the introducing
partner and 60% by the other party. Project expenditures are determined by committee, consisting
of two senior management personnel from each party. Alianza is the operator of A lliance projects
unless the Alliance steering committee determines, on a case -by-case basis, that Cloudbreak
would be a more suitable operator. The initial term of the Alliance runs for two years and may be
extended for an additional two years.
About Cloudbreak Discovery PLC
Cloudbreak Discovery PLC, is a leading natural resource project generator, working across a
wide array of mineral assets that are being developed and managed by an experienced team
with a proven track record. Value accretion within the projects being developed by Cloudbreak’s
generative model enables a multi -asset approach to investing and exploration. Diversification
within the mining sector and amongst resource classes is key to withstanding the cycles of
natural resource investing.
About Allied Copper
Allied Copper Corp. is headquartered in Vancouver, BC Canada is a mineral exploration company
focused on acquiring and developing potential long life, scalable copper-gold assets in the Western
United States. The Company’s strategy is to focus on low cost and potential high growth
operations in low -risk jurisdictions. Allied Copper’s management is committed to operating
efficiently and with transparency in all areas of the business.
About Alianza Minerals Ltd.
Alianza employs a hybrid business model of joint venture funding and self -funded projects to
maximize opportunity for exploration success. The Company currently has gold, silver and base
metal projects in Yukon Territory, British Columbia, Colorado, Nevada and Peru. Alianza
currently has one project (Tim, Yukon Territory) optioned out to Coeur Mining, Inc. and is
actively seeking partners on other projects.
Alianza is listed on the TSX Venture Exchange under the symbol “ANZ” and trades on the
OTCQB market in the US under the symbol “TARSF”.
Mr. Jason Weber, P.Geo., President and CEO of Alianza Minerals Ltd. is a Qualified Person as
defined by National Instrument 43-101. Mr. Weber supervised the preparation of the technical
information contained in this release.
For further information, contact:
Jason Weber, President and CEO
Sandrine Lam, Shareholder Communications
Tel: (604) 807-7217
Fax: (888) 889-4874
Renmark Financial Communications Inc.
Scott Logan
Tel: (416) 644-2020 or (212) 812-7680
www.renmarkfinancial.com
To learn more visit: www.alianzaminerals.com
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. STATEMENTS IN THIS
NEWS RELEASE, OTHER THAN PURELY HISTORICAL INFORMATION, INCLUDING STATEMENTS
RELATING TO THE COMPANY'S FUTURE PLANS AND OBJECTIVES OR EXPECTED RESULTS,
MAY INCLUDE FORWARD-LOOKING STATEMENTS. FORWARD-LOOKING STATEMENTS ARE
BASED ON NUMEROUS ASSUMPTIONS AND ARE SUBJECT TO ALL OF THE R ISKS AND
UNCERTAINTIES INHERENT IN RESOURCE EXPLORATION AND DEVELOPMENT. AS A RESULT,
ACTUAL RESULTS MAY VARY MATERIALLY FROM THOSE DESCRIBED IN THE FORWARD -
LOOKING STATEMENTS.