Contact Gold Corp. (TSX-V: C) is pleased to announce that it has signed a purchase option agreement with Ely Gold Royalties Inc. to acquire an undivided 100% interest in the past producing Green Springs gold project, located in White Pine County, Nevada, adding a second Carlin-type gold system to the property portfolio.
Historic drill highlights:
For a table of historic drill intercepts outside of previously mined areas reported by previous operators please click: http://www.contactgold.com/_resources/news/GS-Unmined-intercepts.pdf
The Green Springs gold project is located at the southern end of Nevada’s prolific Carlin Trend, 60 km southwest of the historic mining centre of Ely, Nevada in a region hosting numerous producing and past producing Carlin-type gold deposits. Green Springs is approximately 10 km east of Fiore Gold’s Gold Rock Project, 10 km south of Waterton’s Mt. Hamilton gold deposit and 20 km southeast of Fiore Gold’s producing Pan Mine. Other deposits/past producers in the region include Illipah (Waterton) and Griffon (Liberty Gold). The Bald Mountain mine complex operated by Kinross Gold is located 45 km to the north of
Green Springs. For a location map please click:
“We are thrilled to add the Green Springs gold project as a complement to our flagship Pony Creek project. The acquisition of a 100% interest in a high-quality, past-producing Carlin system with a wealth of compelling historical gold intercepts, represents a clear opportunity to create value”, stated Matt Lennox-King, President & CEO of Contact Gold. “The Green Springs region hosts multiple Carlin deposits, and has seen a renewed exploration focus with Fiore Gold’s recent success at the Pan Mine and the Gold Rock deposit.”
The Green Springs gold project hosts a past producing heap-leach gold mine that produced 72,000 ounces of gold from a series of shallow pits, less than 100 metres deep, at an average grade of 2.32 g/t Au in the late 1980’s for US Minerals Exploration (USMX). The property hosts a widespread and shallow Carlin-type gold system, hosted within Mississippian rocks of the Chainman and Joanna limestone formations, associated with de-carbonatization, silicification, jasperoid development, and typical pathfinder elements including Arsenic, Antimony, Mercury, and Thallium.
Gold mineralization has also been intersected in limited drilling at the Pilot Shale – Guilemette Limestone contact. This new target horizon is interpreted to be present across the property at a shallow depth and represents a compelling exploration opportunity.
From 1988 to 1990, USMX produced gold from a series of open pits known as the “C”, “C-North” and “B-pits”, hosted within limestones of the Mississippian Chainman formation. Abundant gold mineralization, in historic drilling, remains down-dip and between the historic pits.
Drilling in 2017 at the “A-target” and “G-Zone” target by Colorado Resources Ltd. intersected strong gold intervals at the Pilot-Guilemette contact, representing an entirely new and lightly tested target horizon at Green Springs. The Pilot-Guilemette contact is interpreted to underlie much of the Green Springs claim block.
For a map of key target areas and zones please click:
Extensive Exploration Database:
Green Springs project is underpinned by an extensive exploration database comprising data for 627 drill holes, 4,200 soil samples, 472 rock chip samples and 47 line-kilometres of CSAMT (geophysics). Contact Gold intends to leverage this database in order to accelerate the definition of new drill hole targets.
In addition, Green Springs is subject to a valid Plan of Operations to perform exploration, comprising 75 Acres which will permit a drill program to test multiple targets within the consolidated land package.
Summary Terms of Agreement:
Contact Gold and its U.S. operating entity, Clover Nevada II LLC has entered into a purchase option agreement with subsidiaries of Ely Gold, whereby Clover shall have an option to purchase a 100% interest in the Green Springs property for total consideration as follows:
Anniversary payment amounts may be made in cash or in common shares at Contact Gold’s election. Payment of all amounts can be accelerated and completed at any time.
The transaction, and the issuance of Contact Gold’s common shares pursuant to the Purchase Option Agreement are subject to acceptance by the TSX Venture Exchange. The issuance of all common shares is subject to a statutory hold period and conditional upon the approval of any required governmental or regulatory authority, including the TSXV.
Green Springs is an early stage exploration property and does not contain any mineral resource estimates as defined by National Instrument 43-101, Standards of Disclosure for Mineral Projects. There has been insufficient exploration to define a mineral resource estimate at Green Springs.
The scientific and technical information contained in this news release has been reviewed and approved by Vance Spalding, CPG, VP Exploration, Contact Gold, who is a “qualified person” within the meaning of NI 43-101. All historic production, drill or sample figures quoted herein are based on prior data and reports obtained and prepared by previous operators. The Company has not completed the work necessary to verify results. The historical figures should not be relied upon and have not been verified by a Qualified Person.
About Contact Gold Corp.
Contact Gold is an exploration company focused on producing district scale gold discoveries in Nevada. Contact Gold’s extensive land holdings are on the prolific Carlin, Independence and Northern Nevada Rift gold trends which host numerous gold deposits and mines. Including Green Springs, Contact Gold’s land position comprises approximately 217 km2 of target rich mineral tenure hosting numerous known gold occurrences, ranging from early- to advanced-exploration and resource definition stage.
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