Aguila Copper Closes Acquisition FOR Multiple Copper-Zinc-GOLD Resources IN the Sherridon Mining District, Manitoba
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AGUILA COPPER CLOSES ACQUISITION FOR MULTIPLE COPPER-ZINC-GOLD RESOURCES
IN THE SHERRIDON MINING DISTRICT, MANITOBA
Vancouver, British Columbia – January 31, 2022: Aguila Copper Corp. (“Aguila” or the “Company”)
(TSX-V: AGL) (OTCQB: AGLAF) (WKN: A2DR6E) is pleased to announce the successful completion of due
diligence and progression to a binding option (the “Option Agreement”) to earn up to a 90% interest in 28 Mining
Claims and 1 Mineral Lease totaling 4968 Ha that cover the Sherridon Mining District in central western Manitoba
(the “Property”).
Sherridon is a notable historic mining area, situated within the Flin Flon /Snow Lake Volcanic Hosted Massive
Sulphide (“VHMS”) mining camp (Figure 1), situated only 65km northeast of the Flin Flon mining/metallurgical
complex. The site is serviced by all-weather roads, a railroad, network power and the small community of
Sherridon/Cold Lake.
Mining of the Sherritt Gordon deposit at Sherridon took place between 1931 and 1951, over which time 7.74 million
tonnes were mined at an average grade of 2.46% Cu, 2.84% Zn, 0.6 g/t Au and 33 g/t Ag (Goetz & Froese, 1981)
from two orebodies along 2.5km of strike. Investors are cautioned that historical production is no guarantee of
future results.
Subsequent exploration was completed in the vicinity of Sherridon by a range of companies, most notably HudBay
Minerals Inc . and Halo Resources Ltd . (“Halo”) who discovered and drilled numerous additional sulphide
occurrences including Bob, Cold Lake, Lost Lake, Fidelity, Jungle and Park (Figure 2). Exploration activity peaked
with the investment of Halo between November 2006 and July 2010, which included 159 drill holes, extensive
geophysics, metallurgical test work, and estimation of near surface indicated and inferred mineral resources for the
Bob, Lost, Cold, and Jungle deposits (see Table 1). No exploration activity is documented after November 2012.
Historical Resource Estimate
SHERRIDON PROJECT – INDICATED RESOURCES (2010)
Mining Method Million
Tonnes
Cu (% ) Zn (% ) Au (g/t) Ag (g/t) Copper
(M lbs)
Zinc
(M lbs)
Gold
(oz)
Silver
(oz)
Open Pit 5.32 0.8 1.23 0.34 7.2
Underground 1.24 1.04 1.18 0.48 8.2
Total Indicated 6.55 0.85 1.22 0.37 7.4 122.1 M lb 176.3 M lb 77,192 oz 1.56 M oz
SHERRIDON PROJECT – INFERRED RESOURCES (2010)
Open Pit 12.24 0.62 0.77 0.26 5.3
Underground 3.62 0.91 1.08 0.32 7.4
Total Inferred 15.86 0.69 0.84 0.28 5.8 239.9 M lb 294.0 M lb 141,245 oz 2.94 M oz
Table 1. Indicated and Inferred resources for Bob, Lost, Cold, and Jungle deposits. Mineral Resource estimates are based upon Bloom, L., Healy, T., Giroux, G.,
Halo Resources Ltd. 2010, Sherridon VMS Property, Technical Report NI43-101 – November 22, 2010, which is available at www.sedar.com.
Mineral Resources were estimated at a net smelter return (NSR) cut-off of US$20 per tonne and US$45 per tonne for open pit and underground respectively.
Metal prices used were US$3.00/lb copper, US$1.05/lb zinc, US$1,000/oz gold and US$15.00/oz silver. Metallurgical recovery factors assumed were 92% for
copper, 83% for zinc, 65% for gold and 57% for silver.
The Mineral Resource estimates were prepared under the direction of, and dated and signed by, a Qualified Person as defined in accordance with NI 43-101
and CIM Definition Standards. The data, information, estimates, conclusions and recommendations were consistent with the information available at the
time of preparation. The terms “mineral resource”, “measured mineral resource”, “indicated mineral resource” and “inferred mineral resource” are defined
in NI 43-101 and recognized by Canadian securities laws. Investors are cautioned not to assume that any part or all of mineral deposits in these categor ies
will ever be upgraded to mineral reserves. Aguila has received the exploration and drilling data, but has not independently confirmed the Mineral Resource
estimates. Halo has indicated that no Mineral Resource estimates were completed subsequent to those provided in Table 1.
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“Acquisition of t he Sherridon mining district has greatly exceeded the goals and expectations of our project
generation efforts” said Mark Saxon, CEO of Aguila Copper Corp. “With substantial historic mining, four near surface
resources, and targets for immediate follow-up, the project is a flagship asset that places Aguila at the forefront of
North American copper exploration. VHMS style deposits are one of the largest producers of copper, zinc and gold
globally, and we are well placed to apply 2020’s understanding and technology to an overlooked yet data-rich asset.
The Company shall provide an expanded update on historic results and opportunities as data is collated and
validated.”
Mineralization (see Table 1) begins from surface and remain open along strike and at depth. Approximately 70%
of the mineralization covered by the historical resource estimate sits above 100m depth and may be amenable for
open pit mining. Prices for copper, zinc, gold and silver are currently approximately 50% higher than those used in
the historical resource estimate calculations.
Assaying of past drilling at Sherridon is restricted to copper, zinc, lead, silver and gold. The Flin Flon/Snow Lake
region is well known for potentially recoverable grades of critical raw materials within VHMS deposits, and
pegmatite-hosted lithium deposits that lie close to the VHMS camps.
In addition to the drilled deposits numerous untested targets have been identified by Aguila and prior explorers ,
based on historical mapping, drilling, geochemistry, and geophysics. Aguila’s exploration strategy is greatly
enhanced by access to the very substantial datasets (more than 400 drillholes) from prior explorers that can now
be fully interrogated with machine learning/A.I., higher resolution geophysics and geochemistry and 3D modelling.
Aguila’s immediate focus will be on establishing current resources, alongside identifying and test ing new targets
prioritized by reprocessing of existing airborne versatile time -domain electromagnetic (VTEM) surveys and
lithogeochemistry.
Based on past exploration, most massive sulphide lenses occur in quartz-rich gneisses (felsic volcanic and volcanic-
derived rocks) near the contact with hornblende -plagioclase gneisses (intermediate to mafic metavolcanic rocks)
in the Sherridon–Hutchinson Lake complex and in garnet -biotite±cordierite±sillimanite gneiss on the east limb of
the Meat Lake synform, (Zwanzig and Schledewi tz, 1992). However, as demonstrated by discoveries within the
nearby Snow Lake, Flin Flon and McIlvenna Bay camps, cross cutting feeder features, structurally remobilized and
gold-rich lodes form excellent non-traditional targets.
In addition to Sherridon, greenfield exploration for copper, nickel and lithium will play an integral role in Aguila’s
goals for further discovery in Manitoba.
Manitoba represents a very stable political jurisdiction with a long history of mining and is considered by the Fraser
Institute as a desirable jurisdiction for mining activity. The Flin Flon/Snow Lake mining district has a educated
workforce, established mining and transport infrastructure, and is serviced by hydroelectric energy. With access to
hydroelectric power, Manitoba presents an excellent opportunity to play a leadership role in the production of low-
CO2 emission metals essential for the energy transition.
Aguila is committed to engaging with all our stakeholders, including indigenous groups, local communities,
employees, customers, and shareholders with the highest level of respect. Exploration and mining activities are
conducted using the most advanced technologies to produce the smallest environmental footprint.
Execution of Sherridon Option Agreement requires Aguila pay CA$15,000 to Halo at the completion of due diligence,
and issue to Halo 100,000 fully paid shares in the Company within six months of the Closing Date. Aguila must
incur exploration expenditures of CA$100,000 before the first anniversary of closing and will earn an 80% interest
in the Property by incurring an additional CA$900,000 exploration expenditures by the 4th anniversary, and an
additional 10% (for a total of 90%) by incurring an additional CA$1,000,000 of exploration expenditures by the
seventh anniversary. Upon exercise of the option, Halo and Aguila will form a joint venture to advance the Property.
Halo may fund project expenditure in proportion to its interest in the Property, or its interest will be converted into
a 1.5% net smelter royalty that is purchasable by the Company for CA$2,000,000 at any time. All shares issued
pursuant to the terms of the Option Agreement are subject to a hold period under applicable securities laws for a
period of four months from the date of issuance. Some Mining Claims are the subject of royalty agreements relating
to prior contracts and agreements. Environmental liabilities from past mining impact remain the responsibility of
the Province of Manitoba.
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Figure 1: Location map for the Sherridon copper district in central western Manitoba, Canada.
Other significant mines, deposits and mineral districts shown.
Figure 2: Local Map for the Sherridon VHMS Camp showing Aguila claims and key localities
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Bloom, L., Healy, T., Giroux, G., Halo Resources Ltd. 2010, Sherridon VMS Property, Technical Report NI43 -101 –
November 22, 2010.
Goetz, P., & Froese, E., 1981, The Sherritt Gordon Massive Sulphide Deposit. Precambrian Sulphide Deposits, H.S. Robinson
Memorial Volume, edited by R.W. Hutchinson, C.D. Spence and J.M. Franklin, Geological Association of Canada Special Paper
25, 1982.
Ostry, G., Athayde, P., & Trembath, G., 1998, Mineral Deposits and Occurrences in the Sherridon Area, NTS 63N/3. Mineral
Deposit Series Report No. 17, Manitoba Energy and Mines Geological Survey.
Zwanzig, H.V. and Schledewitz, D.C.P., 1992, Geology of the Kississing – Batty lakes area - interim report. Manitoba Energy
and Mines, Minerals Division, Open File Report OF92-2.
Technical Background
The Company has obtained historic exploration data for this press release from Halo Resources Ltd, Manitoba
Agriculture and Resource Development, and other public archives. Although historic exploration data was generated
by reputable companies applying practice of the day , Aguila cannot verify the data or determine the quality
assurance and quality con trol measures applied in generating the data. Furthermore, there is no guarantee that
the exploration history is fully captured. Accordingly, the Company cautions that the exploration data reported in
this news release may not be reliable. Readers are cautioned that a "qualified person" as defined by National
Instrument 43-101 has not completed sufficient work to be able to verify the historical information or to classify
the historical estimates as current mineral resources, and therefore the information should not be relied upon. The
Company is not treating the historical estimates as current mineral resources or reserves.
The Company is presently reviewing past data and information with the support of Halo . Aguila anticipates re -
surveying of past drill holes; re-assay and density logging of selected drill core; gaining access to original laboratory-
sourced assay data; and potential drilling of confirmation holes shall be required to verify the historical estimate as
current mineral resources.
The qualified person for the Company's projects, Mr. Mark Saxon, the Company’s Chief Executive Officer, a Fellow of the
Australasian Institute of Mining and Metallurgy and a Member of the Australian Institute of Geoscientists, has reviewed and
approved the contents of this release.
About Aguila Copper Corp (TSX.v: AGL) (OTC: AGLAF) (WKN: A2DR6E)
Aguila Copper Corp is an emerging copper and precious metal company enhancing shareholder value through
exploration and discovery.
ON BEHALF OF THE BOARD,
“Mark Saxon”
Mark Saxon
President & CEO
For further information, please contact:
aguilacopper.com
1305 – 1090 West Georgia St., Vancouver, BC, V6E 3V7
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.
Cautionary Note Regarding Forward-Looking Statements
Certain information set out in this news release constitutes forward-looking information. Forward looking statements are often,
but not always, identified by the use of words such as "seek", "anticipate ”, "plan", "continue”, "estimate”, "expect", "may”,
"will", "intend", "could", "might", "should", "believe" and similar expressions. Forward- looking statements are based upon
the opinions and expectations of management of the Company as at the effective date of such statements and, in certain cases,
information provided or disseminated by third parties. Forward -looking statements in this news release include statements
regarding the closing of the transactions contemplated in the Option Agreement, the exercise of the option and the Exchange
approval of the Option Agr eement. Although the Company believes that the expectations reflected in such forward- looking
statements are based upon reasonable assumptions, and that information obtained from third party sources is reliable, they
can give no assurance that those expect ations will prove to have been correct. Readers are cautioned not to place undue
reliance on forward-looking statements.
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These forward-looking statements are subject to a number of risks and uncertainties. Actual results may differ materially from
results contemplated by the forward- looking statements. Accordingly, the actual events may differ materially from those
projected in the forward- looking statements. Such risks include the ability of the Company to complete all payments, share
issuances and expenditures required under the Option Agreement, the Exchange approval to the Option Agreement and
uncertainties relating to exploration activities. When relying on forward- looking statements to make decisions, investors and
others should carefully consider the foregoing factors and other uncertainties and should not place undue reliance on such
forward-looking statements. The Company does not undertake to update any forward- looking statements, except as may be
required by applicable securities laws.