Transition Metals Options its Fostung Tungsten Property, Ontario
Transition Metals Options its Fostung
Tungsten Property, Ontario
Sudbury, Ontario--(Newsfile Corp. - August 10, 2020) - Transition Metals Corp. (TSXV: XTM)
("
Transition
" or the "
Company
"), a Canadian-based multi-commodity project generator with a growing
project portfolio, announces that it has executed an arms length Option and Joint Venture Agreement
with 1930153 ON Ltd. ("1930153 ON") whereby 1930153 ON can earn up to an 100% interest in the
Fostung Property located 8 kilometres southeast of Espanola, Ontario (see Company news release
dated November 14, 2019).
To earn a 50% interest, 1930153 ON must provide option payments totalling $110,000 over 4 years that
includes a $15,000 payment upon execution of the Agreement.
All option payments will be doubled if the
project attracts at least $2,000,000 of financing during the 5 year Option Period.
Additionally, 1930153
ON must complete $500,000 of exploration expenditures over 5 years. 1930153 ON may increase its
interest in the Fostung Property to 80% by providing Transition with a further $500,000 cash and
completing an additional $1,500,000 work over 2 years and further increase its interest to 100% by
making an additional cash payment of $4,500,000 to the Company, subject to an NSR royalty. The
Fostung mineralization is a skarn-type, tungsten deposit located within calcareous Huronian
metasedimentary units.
The property hosts a historic inferred mineral resource estimated in 2007 by
SRK Consulting at 12.4 million tonnes, grading 0.213% WO3, with a cut-off grade of 0.125%. SRK
based this estimate on data from a total of 44 diamond core drill holes and an aggregate of 9,185
metres of drill results.
The Company discloses that a qualified person has not done sufficient work to
classify the historical estimate as current mineral resources or mineral reserves, and the issuer is not
treating the historical estimate as current mineral resources or mineral reserve. Furthermore, the
Company has not independently verified the samples and grades presented in this release and consider
them to be historic in nature.
Transition CEO and President, Scott McLean commented, "We are pleased to have formed a new
partnership with 1930153 ON Ltd. to further advance this historic tungsten skarn resource. Tungsten is
recognized as a critical metal by various countries including the USA and with the vast majority of global
production coming from China, the Fostung Property is a strategic asset. As a project generator,
Transition continues to focus on generating high quality exploration projects and partnering to advance
them toward production."
Mark Trevisiol, President of 1930153 Ontario Ltd says, "The Fostung Property hosts highly interesting
tungsten mineralization in the heart of the Sudbury Mining District.
I look forward to working with the local
community and Transition to study its potential development."
About the Fostung Property
The Fostung property consists of 50 mining claims covering 1,114 hectares. The property is located in
Foster Township, District of Sudbury, in Ontario, Canada approximately 8 kilometres southeast of
Espanola, Ontario. An excellent all-weather gravel road extends from the property to Espanola where
TransCanada Highway #17 is located. The prolific Sudbury mining district is located 70 kilometres to the
northeast.
Previous Work
The Fostung Property was initially discovered in 1966 by local prospectors who subsequently optioned
the property to Texas Gulf. From 1966 to 1973 a total of 14 holes for 2,969 metres were completed by a
succession of companies including Texas Gulf, Cerro Corp, Vangulf and St. Joseph Explorations. The
property remained idle until 1978 when Union Carbide optioned the property and proceeded to drill a
further 29 holes totaling 5,234 metres over an eight-year period. Union Carbide also performed a
preliminary resource estimate, economic cost analysis for both open pit and underground mining
scenarios; preliminary bulk metallurgical test on composited core rejects and developed a preliminary
mill design. In 1986, Novamin Resources took over the property and completed 1 hole for 982 metres
which remains the last exploration hole drilled on the property. In 1988, Breakwater Resources acquired
the assets of Novamin and 30-year mining leases were secured for the property. The property remained
idle until 2007 when Golden Predator optioned the property from Breakwater Resources and
commissioned SRK Consulting to complete a National Instrument 43-101 Technical Report on
Resources on the Fostung Property which reported an inferred mineral resource of 12.4 million tonnes,
grading 0.213% WO3, with a cut-off grade of 0.125%
1
. In 2009, Golden Predator transferred ownership
of the Fostung Project to its newly created spin-out company called EMC Metals Corp. In 2011, EMC
Metals Corp. sold a 100% interest in the project to Janus Resources Inc. for $500,000 in cash. The
property remained covered under the initial 30-year leases until 2019 when the leases were allowed to
lapse and subsequent opened for staking by the Ministry of Northern Development and Mines.
Geology and Mineralization
The Fostung mineralization is a skarn-type, tungsten deposit located within calcareous Huronian
metasedimentary units unconformably overlying Precambrian basement shield rocks. The property is
situated within a northeast trending belt of Early Precambrian volcanic and felsic plutonic rocks that
separates the Superior Archean greenstone-gneiss Province on the northwest from the Mesoproterozoic
to Neoproterozoic metasediments and felsic plutons of the Grenville Province on the southeast1.
Scheelite mineralization extends along strike of the Calcareous Siltstone Member of the Espanola
Formation for approximately 2 kilometres. Thinner and more discontinuous skarns with less
volumetrically significant scheelite occurs in the stratigraphically higher and lower units. The primary
controls on mineralization are the proximity of chemically favourable carbonate-bearing strata to
structural permeability zones of faults and fracture zones. Conceptually the faults have provided the
channel pathways for hydrothermal fluids derived from an unknown, presumably deep buried felsic pluton
which is uncommon in the local area.
Zones of tungsten mineralization are associated with packages of dark red garnet ± pyroxene beds
intercalated with diopside rich beds. Historic grades of approximately 1 wt. % WO3 over 1 metre have
been intersected in the former, but more commonly average 0.15 wt. % to 0.30 wt. % WO3 in the latter
assemblages. In the dark green skarns containing 50 percent pyrrhotite, scheelite mineralization historic
grades of up to 2.75 wt. % WO3 over 1.5 metres have been discovered. High-grade scheelite zones are
commonly flanked by lower grade scheelite-pyrrhotite-chalcopyrite ± pyrite and sphalerite. Scheelite
tends to be somewhat mobile, locally redistributed in Nipissing and olivine diabase dikes that have
intruded the mineralized section.
¹ Source: NI 43-101 Technical Report on Resources, Golden Predator Mines Inc., Fostung Project Foster Township, Ontario, Canada. Prepared
by SRK Consulting, November 30, 2007. Transition has not done sufficient work to classify this historical estimate as a current mineral resource
hence it should not be relied upon
Qualified Person Statement
The technical elements of this press release have been reviewed and approved by Transition's
Exploration Manager, Mr. Grant Mourre, P.Geo. (PGO), a Qualified Person under National Instrument 43-
101.
About Transition Metals Corp
Transition Metals Corp (TSXV: XTM) is a Canadian-based, multi-commodity project generator that
specializes in converting new exploration ideas into discoveries. The award-winning team of
geoscientists has extensive exploration experience which actively develops and tests new ideas for
discovering mineralization in places that others have not looked, often allowing the company to acquire
properties inexpensively. Joint venture partners earn an interest in the projects by funding a portion of
higher-risk drilling and exploration, allowing Transition to conserve capital and minimize shareholder's
equity dilution.
About 1930153 ON Ltd.
1930153 ON is a private company based in Sudbury Ontario.
The Company is focused on the
acquisition of local, Sudbury area mineral properties that can be readily advanced to production utilizing
technological advancements in extractive methods and mineral processing.
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 Canadian securities law. Such forward-looking
information may be identified by words such as "plans", "proposes", "estimates", "intends", "expects",
"believes", "may", "will" and include without limitation, statements regarding estimated capital and
operating costs, expected production timeline, benefits of updated development plans, foreign exchange
assumptions and regulatory approvals. There can be no assurance that such statements will prove to be
accurate; actual results and future events could differ materially from such statements. Factors that could
cause actual results to differ materially include, among others, metal prices, competition, risks inherent in
the mining industry, and regulatory risks. Most of these factors are outside the control of the Company.
Investors are cautioned not to put undue reliance 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.
Further information is available at
www.transitionmetalscorp.com
or by contacting:
Scott McLean
President and CEO
Transition Metals Corp.
Tel: (705) 669-1777
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 PRESS RELEASE, PROVIDED PURSUANT TO APPLICABLE CANADIAN REQUIREMENTS,
IS NOT FOR DISTRIBUTION TO UNITED STATES NEWS SERVICES OR FOR DISSEMINATION IN
THE UNITED STATES, AND DOES NOT CONSTITUTE AN OFFER OF THE SECURITIES
DESCRIBED HEREIN. THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE UNITED
STATES SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS, AND
MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES OR TO U.S. PERSONS ABSENT
REGISTRATION OR APPLICABLE EXEMPTION FROM REGISTRATION REQUIREMENTS
To view the source version of this press release, please visit
https://www.newsfilecorp.com/release/61375