True North Gems Expands Mineral Project Portfolio
True North Gems Expands Mineral Project Portfolio
Vancouver – December 30, 2021 – True North Gems Inc. (TGX: TSX-V) (the “Company”) reports that, due
to the limited exploration season combined with COVID -19 related delays the Company has found it very
challenging to organize exploration on its Yukon properties in a financially efficient matter. Consequently,
the Company has negotiated two separate transactions with an arms -length prospector for the acquisition of
two projects to diversify the Company's mineral exploration efforts.
The first project, known as the Chuchinka Property, is a grassroots Rare Earth Element (REE) exploration
prospect covering an area of 562 hectares, located approximately 4 kilometres north of the Defense Metals
Corp. REE discovery known as the Wicheeda Rare Earth Element deposit, in British Columbia.
In November 2021 Defense Metals announced a positive Preliminary Economic Assessment for the
Project with a pre -tax net present value (NPV) of $765 million, and after -tax NPV of $512 million, at 8%
discount rate (Defence Metals Corp News Release November 24, 2021).
The Wicheeda REE Property was discovered in 1976 during follow-up of 1961 Geological Survey of Canada
aeromagnetic anomalies. Lithium exploration in the region has accelerated in recent years since the
Wicheeda discovery and the regional prospectivity for the Rare Earth Elements (“REE”) is confirmed by the
identification of a number of other early stage prospects such as; CAP01 Niobium, Strontium, Rare Earth
(Minfile 093I 040), CAP02 Niobium, Zirconium, Rare Earth (Minfile 093I 038) and Wicheeda South
Cerium, Lanthanum, Neodymium (Minfile 093I 033) occurrence.
The second project, known as the Cobalt Hill Gold-Copper-Cobalt property, comprises 421.467 hecateres
and is located in south central British Columbia, 5 kilometres east of Castlegar in southeastern British
Columbia and is the subject of BC Geological Survey Assessment Report #37298.
Based on this report: The property exhibits widespread gold mineralization generally associated with narrow,
often wide-spaced quartz veins. This high grade gold mineralization has been found in numerous locations
throughout the property and is well documented.
In addition to the gold-bearing quartz vein system, copper mineralization has been noted in several locations.
Soil geochemistry has found anomalous copper zones within altered and often brecciated sections of the
intrusive Bonnington pluton.
Along with the copper mineralization, cobalt geochemical values of interest have been noted. Numerous old
prospect pits, shafts and adits on the Cobalt Hill Property are evidence of the early exploration history in the
area, and there is anecdot al evidence of early placer gold mining on McPhee and Champion creeks. The
presence of free gold in quartz veins at the Maud S showing has been known since the late 1890s.
Continuous exploration work has been carried out on the claims since 1995 with rock and soil geochemical
surveys, airborne geophysical surveys, geological mapping and two small diamond drilling programs. The
majority of the exploration work concentrated on gold mineralization.
Along with gold mineralization, the property has the poten tial to host breccia or porphyry bodies containing
copper +/- cobalt as seen from soil geochemistry. In 2017, a small soil geochemical survey, rock sampling and
petrographic work was conducted on the property.
Acquisition Terms:
The Agreement allows the Company to acquire 100% interest in the Chuchinka Property in consideration for
reimbursing the prospector's staking costs and reserving a 3% NSR in favor of the prospector.
The Agreement allows the Company to acquire 100% interest in the Cobalt Hill Gold-Copper-Cobalt Property
in consideration for reimbursing the prospector's staking costs and reserving a 3% NSR in favor of the
prospector.
The Company is utilizing general working capital funds from the exercise of outstanding warrants to fund the
reimbursement of the prospector's staking costs which total $2,460.
Owen King, CEO
On behalf of the Board of Directors of True North Gems Inc.
For further information, contact:
Email: [email protected]
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.
This document contains “forward-looking information” and “forward-looking statements” (together, “forward-looking statements”) within the
meaning of applicable securities legislation, which are made as of the date of this document or the document(s) referred to herein.
Statements that express predict ions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance
(often, but not always, using words or phrases such as “expects”, “anticipates”, “plans”, “projects”, “estimates”, “intends”, “strategy”,
“goals”, “objectives” or variations thereof or stating that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken,
occur or be achieved, or the negative of any of these terms and similar expressions) are not statements of historical fac t and may be
forward-looking statements. Forward- looking statements include, without limitation, statements with respect to:. The forward- looking
statements are made based upon certain assumptions which, if untrue, could cause the actual results, performances or achievements of
the Company to be materially different from future results, performances or achievements expressed or implied by the forward- looking
statements. By their very nature, forward- looking statements involve inherent risks and uncertainties that could cause actual results,
performances or achievements to differ materially from those in the forward- looking statements. These include, without limitation: price
volatility, discrepancies between actual and estimated production, mineral reserves and resources and metallurgical recoveries, mining
operational and development risks, regulatory restrictions (including environmental regulatory restrictions and liability), a ctivities by
governmental authorities (including changes in taxation), currency fluctuations, the speculative nature of mineral exploration, the global
economic climate, dilution, share price volatility, competition, loss of key employees; additional funding requirements and defective title to
mineral claims or property]. This list is not exhaustive. See also, for example, the risks disclosed in the Company’s other disclosure
documents filed at www.sedar.com, including, without limitation, those disclosed in the Company’s management’s discussion & analysis.
The Company expressly disclaims any intention or obligation to update or revise any forward- looking statements, except as otherwise
required by applicable securities legislation.