Zonte Metals Provides Corporate Update
Zonte Metals Provides Corporate Update
TSXV: ZON
HALIFAX
,
Feb. 9, 2017
/CNW/ - Zonte Metals listed on the TSX Venture exchange late 2009 and since then has focused on acquiring gold exploration projects
that show large scale potential. The recent success in acquiring the McConnell's Jest (MJ) property in the
Yukon
is the culmination of over five years of property
investigations. The MJ is Zonte's second Canadian property, the first being the drill ready Wing's Point gold project in
Newfoundland
and
Labrador
. Additionally, in
Colombia
Zonte with its Colombian partner identified and made application over open areas between titles over the Gramalote Deposit which is owned by
AngloGold Ashanti and B2Gold. The local authority is attempting to not title the application, however, our legal advisors have noted that if their own Mining Code is
followed the application should be titled to us.
Zonte's MJ project is contiguous with
Victoria Gold's
(TSXV: VIT) Dublin Gulch Project. The Dublin Gulch project has a resource of 6.3 million ounces of gold (4.8
million ounces indicated and 1.5 million ounces inferred), including the Eagle Deposit which hosts a reserve of 2.7 million ounces of gold. Victoria recently
announced it has arranged a
US$220 million
credit facility that "is expected to be the foundation of the financing package that will fund the Eagle Project through
construction and into production." Production targets for the Eagle Deposit are 200,000 ounces of gold per year for 10 years with an all-in sustaining cost of
US$630
per ounce, according the Eagle Gold Project Feasibility Study announced
Sept 12, 2016
.
Victoria's gold mineralization is hosted in and related to an intrusion which has been identified as an Intrusion Related Gold System (IRGS). That intrusion is
about 5 by 2 km in size. Zonte's newly acquired MJ project also hosts an IRGS with the intrusion measuring about 7 by 2.5. The MJ project has been explored
intermittently since 2010 including; soil and rock sampling and mapping. Approximately half the intrusion has been covered with a soil grid leaving the other half
mostly unexplored. Soil sampling has been the key to identifying targets and so far six targets hosting bedrock gold mineralization have been identified. Two of
the targets,
Pink Mountain
and the Two Four Zone, are most advanced in that they have received the most exploration.
The
Pink Mountain
target is defined by sheeted veins at densities of up to five veins per metre with the grades in those veins ranging from 1 to 7 g/t. The target
area is 500 by 375 metres and open on three sides. The Two Four Zone was discovered this past summer and sits outside the soil gridded area. The Two Four
Zone hosts a high-density set of auriferous quartz and scorodite veins. The veins generally assay between 4 to 41 g/t Au and are 3 to 5 cm wide. Vein samples
taken from the
Pink Mountain
and the Two Four Zone were grab samples across the width of the veins and may not be representative of the property or targets as
a whole. The Two Four Zone is unique in that the scorodite/auriferous quartz vein density is high. Generally, these veins are spaced 1 vein every 30 or so metres
in these geological systems, but in a 50 metre area that was mapped the vein density was 1 vein per metre according to
Andy Randell
, P Geo. of SGDS Hive,
who mapped the area noted. Andy has considerable experience in IRG systems, and is a former project geologist for
Victoria Gold's
Dublin Gulch project. Based
on mapping, visual inspection and aerial photo interpretation the structure hosting this target is approximately 1 km in length. Andy also pointed out several key
geological aspects that indicate the potential for additional exploration success. One of the most important geological features is the "roof" of the intrusion
appears to still be intact and has not been eroded. This is important since much of the gold in these IRGS's is found in the roof. Andy has been working with the
vendor of the MJ for several years and spent eight years working on an IGRS in the
Yukon
.
The second property in Zonte's portfolio is the Wings Point Gold Project (Wings) which is located on the island portion of
Newfoundland
and
Labrador
. The Wings
project is a gold bulk-tonnage, drill ready target partially exposed in an operating rock and gravel pit. It was acquired in 2010 and over the subsequent two years
was taken to the drill-ready stage. With the downturn in the commodity markets Zonte elected to put the project on hold. In
Newfoundland
, over the past several
years, exciting exploration stories have been developing. In late 2016,
Shawn Ryan
, who found the Coffee deposit in the
Yukon
, staked a land package, including
a claim block that abuts the southern portion of Wings. Stratton Resources (TSXV: SI) optioned property package from Mr. Ryan. According to press releases,
Stratton
is in the process of raising
$13 million
with some of the proceeds being used to explore its
Newfoundland
projects.
Stratton
has attracted attention with a
market capitalization of approximately
$50 million
. In central
Newfoundland
, Marathon Gold (TSXV: MOZ) is drilling their
Valentine Lake
project with success.
Their resource is over 1 million ounces of gold in the measured and indicated categories. Just north of Marathon, Antler Resources (TSXV: ANTL), has been
publishing encouraging results.
In
Colombia
, Zonte and its local partner identified open areas between titles sitting on top of the open pit outline for the large Gramalote gold deposit, which is
owned by AngloGold Ashanti (NYSE: AU) and B2Gold (TSX-BTO). The provincial authorities who manage the mineral titling system, the Secretary of Mines, is
attempting to deny titling the application so we have presented the case to Special Court wherein we have asked the Judge to have the Secretary of Mines
process the application according to the Colombian Mining Code. According to our legal advisors, based on the Mining Code, the application should be titled. It's
unclear why the authorities won't process the application according to the Colombian mining laws.
With the recent acquisition of the McConnell's Jest project in the
Yukon
and the drill ready Wings Point Gold Project in
Newfoundland
, Zonte now has two high
quality exploration assets that are ready to move to the next stage. Planning is underway for these projects and investors will be apprised of developments as
they occur. We are very excited about our prospects and look forward to exploration and drilling in the 2017 field season. We would like to take this opportunity to
thank shareholders who have supported the company over the early years and welcome new shareholders as we move to the next phase of our development.
Qualified Person
This news release has been reviewed and approved by
Dean Fraser
, P.Geol, and a "qualified person" under National Instrument 43-101.
About Zonte
Zonte Metals Inc. is a junior explorer focused on gold and copper. The Company holds the Wings Point Gold Project which is a drill ready project in
Newfoundland
and
Labrador
and has signed an Option Agreement to acquire 100% of the McConnell's Jest project, in the Tintina Gold Belt, located in the
Yukon Territory
, which
is composed of 172 claims totaling approximately 3371 hectares. In addition, the Company and a Colombian partner have an application over open areas sitting
on top of the open pit outline of the Gramalote Deposit in
Colombia
, which is held by AngloGold Ashanti (NYSE: AU) and B2Gold (TSX: BTO, NYSE: BTG). The
title issuance is being contested by the state governing the application and the Company has started legal action to protect its rights.
Forward-Looking Information
This news release contains forward-looking statements which include statements regarding the Company's future plans, as well as statements regarding financial
and business prospects and the Company's future plans, objectives or economic performance and financial outlooks. The Company believes that the expectations
reflected in this news release are reasonable but actual results may be affected by a variety of variables and may be materially different from the results or events
predicted in the forward-looking statements. Readers are therefore cautioned not to place undue reliance on these forward-looking statements.
In evaluating forward-looking statements readers should consider the risk factors which could cause actual results or events to differ materially from those
indicated by such forward-looking statements. These forward-looking statements are made as of the date hereof, and unless otherwise required by applicable
securities laws, the Company does not intend nor does it undertake any obligation to update or revise any forward-looking statements.
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.
SOURCE
Zonte Metals Inc.
To view this news release in HTML formatting, please use the following URL: http://www.newswire.ca/en/releases/archive/February2017/09/c5107.html
%SEDAR: 00029601E
For further information:
Terry Christopher, CEO and President, 902-405-3520, [email protected], www.zontemetals.com
CO: Zonte Metals Inc.
CNW 16:00e 09-FEB-17