PROBE GOLD INC. (TSX: PRB) (OTCQB: PROBF) is pleased to announce that it has entered into a definitive agreement of purchase and sale with Monarch Mining Corporation, pursuant to which Probe has agreed to acquire a 100% interest in the Croinor Gold property. The Property acquisition extends the Company’s land package immediately to the east of the Company’s Novador Project (see figure 1) and increases Probe’s landholdings in Val-d’Or to 600 square kilometers. The closing of the transaction is expected to close in the coming weeks and is subject to receipt of all necessary regulatory and other approvals, including that of the Toronto Stock Exchange, and the satisfaction of other customary closing conditions.
Figure 1 – Probe Gold Val-d’Or properties with the Croinor acquisition
David Palmer, President and CEO of Probe, states: “The Croinor property is a highly strategic acquisition for a number of reasons, it ties into our current development model in Val-d’Or; increases our current resource inventory by 228,000 ounces of high-grade gold; and also gives us an additional 152-square-kilometers of highly prospective and under-explored ground for further expansion and discovery. Our goal is to begin work immediately, upon closing, to advance this project and bring it under the umbrella of our Novador development plans. We see the ability to increase our resource base, and ultimately our production plans, with this acquisition and add significant value to shareholders.”
The Property is located 58 kilometres east of the Novador project in Val-d’Or, Quebec, and consists of one mining lease and 337 claims, over a 152-square-kilometre area. The Property hosts a current measured and indicated resource of 805,900 tonnes at 6.47 g/t for 187,900 ounces of gold and inferred mineral resource of 200,100 tonnes at a grade of 6.19 g/t for 39,800 ounces of gold (source: Monarch NI 43-101 Technical Report Croinor Gold – July 2022). The Property will be part of the Company’s Val-d’Or consolidated land package, which, after the acquisition of the Property, will stand at 600 square kilometres.
The Property is underlain by two major lithological packages: the dominantly volcanic Assup Domain in the north and the dominantly sedimentary Garden Island Domain in the south. The Pershing Batholith overlaps the southwest end of the Property. The Property is transected by the Garden Island Deformation Corridor (“GIDC”) in a northwest-southeast direction, which is a major fault following the contact between the Assup and Garden Island domains. Probe is currently exploring the GIDC on its Novador project, as part of the Company’s 2023 exploration initiative.
The Croinor Gold deposit is hosted by a synvolcanic dioritic sill. This sill is 60 to 120 metres thick and is hosted within volcanic rocks of the Assup Domain. The deposit is characterized by gold-rich lenses consisting of quartz-carbonate-tourmaline-pyrite veins, altered pyritic host rock material, and/or tectonic breccia. The mineralized lenses range from 60 to 120 metres long and can be followed over lateral distances varying from several tens of metres up to 600 m. To date, about 40 gold-rich lenses have been identified. Other gold showings, surrounding the Croinor deposit have seen limited exploration by trenching and drilling. Gold mineralization is found in vein systems within or associated with dyke, sill or intrusives within the volcanics. The Croinor gold system remains open for expansion and a large part of the property was never explored using modern techniques.
Pursuant to the Agreement, the Company will acquire a 100% interest in the Property for aggregate consideration of $4.5 million, payable at the closing of the acquisition in a combination of cash and common shares of the Company, as follows: (i) Probe will issue to Monarch that number of common shares of the Company that is equal to $2.5 million based on a 10-day volume weighted average price (VWAP) of Probe’s common shares on the Toronto Stock Exchange; and (ii) Probe will pay Monarch $2 million in cash. In addition, Probe will assume any reclamation liabilities associated with the past-producing Croinor mine.
The scientific and technical content of this press release has been reviewed, prepared, and approved by Mr. Marco Gagnon, P.Geo, Executive Vice President of the Company, who is a “Qualified Person” as defined by National Instrument 43-101 – Standards of Disclosure for Mineral Projects.
About Probe Gold:
Probe Gold Inc. is a leading Canadian gold exploration company focused on the acquisition, exploration, and development of highly prospective gold properties. The Company is committed to discovering and developing high-quality gold projects, including its key asset the multimillion-ounce Novador Gold Project, Québec. The Company is well-funded and controls a strategic land package of approximately 1,600-square-kilometres of exploration ground within some of the most prolific gold belts in Québec.
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