Canadian Gold Miner Options Gold and Cobalt Properties to Explorex
Canadian Gold Miner Options Gold and Cobalt Properties to Explorex
Sudbury, November 2, 2017 – Canadian Gold Miner Corp (“CGM”, the Company) and
Transition Metals Corp. (50% owner of CGM; XTM – TSX.V, “Transition”) , jointly announce
that CGM has entered into an agreement with Explorex Resources Ltd. (Explorex) to option
100% of CGM’s interest in its Cobalt-Paragon Project (previously referred to as the Golden Elk
Property by XTM/CGM, or the Property) to Explorex in exchange for $140,000 (of which
$130,000 can be in cash or shares), the issuance of 1,700,000 Explorex shares and the
completion of $1,275,000 in work expenditures over a 3-year period. Upon earning a 100%
interest, CGM will retain a 1% Net Smelter Return royalty subject to a first right of refusal to
buyback the NSR held by Explorex . The property consists of staked and patented property that
was consolidated by CGM.
Canadian Gold Miner CEO Greg Collins commented “Optioning our interest in this project to
Explorex will expose our shareholders and the XTM shareholders to upside coming from a great
team active in the cobalt sector while enabling us to keep our focus on gold opportunities
emerging from our South Kirkland project area.”
About the Cobalt Paragon Project:
The Cobalt-Paragon project consists of two historic mines, the Cobalt-Frontenac and Paragon-
Hitchcock, hosting two distinct target types: (1) at the Cobalt-Frontenac Archean volcanics, cut
by NE-oriented shears with multiple east-west pinch and swell veins containing historic gold
values on surface and (2) Proterozoic Nipissing diabase sills hosting quartz–calcite veining with
silver and cobalt mineralization at the Paragon-Hitc hcock. Historic exploration dates largely to
the period from 1900 to 1920 and was focused on prospecting to identify mineralized structures
followed by underground development. Neither of these mines has ever been investigated by
modern exploration methods guided by current ore deposit modelling criteria nor has any drilling
been completed. The project is located close to Elk Lake Ontario, less than 45 minutes along
provincial highways from both Kirkland Lake and Temiskaming Shores.
The Cobalt–Frontenac mine lies along the projection of the Rideout fault structure, which to the
west is extensively covered by Proterozoic Huronian sediments. The mine was developed to
explore and exploit an Archean high-grade, shear-hosted quartz vein gold occurrence around
1904 to 1917, when a 30 metre deep shaft and 2 underground levels were completed. Stripping
and trenching by Transition in 2012 in the vicinity of the shaft exposed a 30 metre wide outcrop
hosting a NE-trending, sheared quartz vein that returned grab values ranging from nil to 11.2
g/t Au and channel samples including 3.0 g/t Au over 0.50 metres¹.
The Cobalt Frontenac mine occurs along the boundary of two privately owned patents acquired
by Transition in 2015. CGM purchased the patents from Transition in 2016 subject to underlying
net smelter return royalties of up to 3% to the original property owners and a $1,000,000
Commercial Production payment to Transition.
The Paragon-Hitchcock mine hosts 3 known zones of silver veining. Prior to 1929, a 180
metre shaft was sunk with 30 metre levels to explore the main vein that was reported to be
thickening with depth with increasing amounts of chalcopyrite and skutterudite (a key cobalt
bearing mineral). All funding and operations ceased due to the collapse in silver price during the
Great Depression of the 1930’s. Recent grab sampling conducted by CGM from a muck pile at
the Paragon Hitchcock mine, representing material from the shaft and underground level,
returned values ranging from 8.79 to 414 (g/t) silver, 0.06 to 9.86 g/t gold, and 0.08 to 9.25%
cobalt.
The Paragon Hitchcock was acquired under by CGM in 2017 via an option agreement with local
claim holders. Under the terms of the Paragon Hitchcock Option agreement a 100% interest in
the property can be earned by making payment s totaling $75,000 and incurring exploration
expenditures of $250,000 over 3 years, subject to a 2% NSR to the property holders, of which
1% of the NSR can be repurchased for $1.0 million dollars. Under the terms of the Explorex
agreement, Explorex has agreed to assume these obligations.
1 http://www.transitionmetalscorp.com/news/2012/item/transition-metals-reports-high-grade-gold-assays-
in-the-southern-abitibi
Gold Exploration Potential:
Gold mineralization associated with the Cobalt-Frontenac mine appears associated with a
northeast trending shear zone that has been traced along strike for over 2 kilometres onto the
recently acquired Paragon Hitchcock property. It is interpreted that this structure has the
potential to control the emplacement of Archean mesothermal lode gold deposits in a manner
similar to other known gold deposits of the Abitibi Greenstone belt.
Silver and Cobalt Exploration Potential:
Portions of the Paragon Hitchcock property are intruded by Nipissing gabbro/diabase sills near
the eastern edge of the historical Elk Lake Silver Camp where, between 1907 and1913, 30
active mines exploited narrow but high grade s ilver-cobalt mineralization. The Elk Lake Mining
Camp occurs within the northern portion of the Cobalt Embayment, where sediments of the
upper members of the Huronian Supergroup unconformably overly Archean basement rocks.
Silver-cobalt mineralization occurs in steeply-dipping carbonate veins controlled by complex
fault networks close to contact between the Nipissing sills and surrounding country rocks.
On the Paragon Hitchcock property, cobalt-bearing vein systems can be traced along strike at
surface for approximately 400 metres in outcrop and trenches and to depth within the historic
mine. A 1929 report issued by Paragon Hitchcock Mines suggested that the thickness and
grade of the veining was increasing towards at depth.
About Canadian Gold Miner Corp
Canadian Gold Miner Corp. is a Canadian private corporation focused on exploring for gold in
the Larder Lake Mining District near Kirkland Lake. The Company was founded by Transition to
leverage its data, expertise and extensive portfolio of high quality gold projects within the
district. CGM has assembled a dominant land position in excess of 165 square kilometres
around the Cadillac Larder, Lincoln-Nipissing and Ridout Structures in the southwestern part of
the prolific Abitibi Greenstone belt in Ontario. The Abitibi Greenstone belt is Canada’s most
prolific gold district located in a stable political jurisdiction with excellent mining infrastructure in
place.
About Transition Metals Corp
Transition Metals Corp. (XTM -TSX.V) is a Canadian-based, multi-commodity project generator
that specializes in converting new exploration ideas into Canadian discoveries. The award-
winning team of geoscientists has extensive ex ploration experience in established, emerging
and historic mining camps, and actively develops and tests new ideas for discovering
mineralization in places that others have not look ed, which often allows the company to acquire
properties inexpensively. The company has an ex panding portfolio that currently includes 25+
gold, copper, nickel and platinum projects primarily in Ontario, Nunavut, Northwest Territories,
British Columbia, Saskatchewan and Minnesota that it seeks to advance through funding
partnerships and subsidiary companies to maxi mize shareholder value. Transition Metals
presently owns approximately 50% of Canadian Gold Miner.
Qualified Person
The technical elements of this press releas e have been approved by Mr. Thomas Hart, P.Geo.,
V.P. Exploration for Canadian Gold Miner and a Qualified Person under National Instrument 43-
101.
Cautionary Note on Forward-Looking Information
Except for statements of historical fact contained herein, the information in this news release
constitutes "forward-looking information" within the meaning of Canadi an securities law.
Such forward-looking information may be id entified by words such as "plans",
"proposes", "estimates", "intends", "expec ts", "believes", "may", "will" and include
without limitation, statements regarding estimated capital and operating costs, expected
production timeline, benefits of updated dev elopment plans, foreign exchange
assumptions and regulatory a pprovals. There can be no assurance that such
statements will prove to be accurate; actual results and future events could differ
materially from such statem ents. Factors that could cause actual results to differ
materially include, among others, metal prices , competition, risks i nherent in the mining
industry, and regulatory risks. Most of these factors are outside the control of the
Company. Investors are caut ioned not to put undue reli ance on forward-looking
information. Except as otherwise required by applicable securities statutes or regulation,
the Company expressly disclaims any intent or obligation to update publicly forward-
looking information, whether as a result of new information, future events or otherwise.
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.
Additional information about Canadian Gold Miner is available at www.transitionmetalscorp.com
or by contacting:
Greg Collins, P.Geo.
President and CEO
Canadian Gold Miner Corp.
Tel: (705) 872-6390
Scott McLean, P.Geo.
Chief Executive Officer
Transition Metals Corp
Tel: (705) 669-5090