Pacton Gold

Exploring the Highly Prospective Pilbara Gold Region in Australia

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Overview

Pacton Gold (TSXV:PAC; US:PACXF) is a gold exploration company based out of Vancouver, Canada, which controls the third largest land holdings in the Pilbara Gold Region, known most recently as the biggest property staking rush in the last few years. The company is currently focused on developing its strategic land position in Western Australia, where it has made acquisitions for the Arrow, Impact Minerals, Friendly Creek and CTTR properties. These properties are strategically placed and are within close proximity to the Novo Resource Corp (TSXV:NVO) and DeGrey Mining Ltd. (ASX:DEG) properties, which have been displaying positive exploration results, yielding the target – gold nuggets.

The Pilbara region is historically known to possess “conglomerate gold”. First identified by Artemis Resources (ASX:ARV), conglomerate gold presents itself as nuggets in the shape and size of watermelon seeds and exists within a sedimentary formation akin to the Witwatersrand Basin in South Africa.

Pacton Gold is focused on expanding its holdings and becoming one of the top exploration companies in the Pilbara region. To this effect, the company has signed a binding letter of intent (LOI) to acquire 100 percent of Drummond East Pty, which holds seven granted tenement licenses across 1,126 square kilometers. The company also signed an LOI to acquire 100 percent of Gardner Mining Pty Ltd.’s Friendly Creek exploration licences and mining leases totaling 31.36 square kilometers. Historically, Friendly Creek is one of the richest areas for alluvial nuggets in the Pilbara region. Additionally, the company has signed a binding LOI to acquire 100 percent Marindi Metals Inc.’s (ASX:MZN) Bellary Dome exploration licenses. These acquisitions will increase Pacton’s land holding in Australia to approximately 2,258 sq kms, making it the third largest landowner in the region.

Pacton’s management team is comprised of members with experience working for both the Australian and North American markets and mining industries. This includes Alec Pismiris, who brings over 30 years of experience in securities, finance and the mining community and he has been associated with multiple successful projects. The company has also recently welcomed Eric Sprott as a significant, strategic shareholder. Sprott has purchased approximately 10.1 percent of the outstanding common shares as part of a recent strategic financing initiative, which would give him 18.4 percent of company holdings, assuming an exercise of warrants. Sprott is also a backer in Novo Resources, which is the initial player in the Pilbara region.

Company Highlights

  • Third largest landholder in Australia’s Pilbara region.
  • Actively working towards acquiring and consolidating properties, with five completed acquisitions.
  • Pilbara region host to high-purity (96 percent) gold nuggets.
  • Arrow Project hosts gold nuggets approximately five to 10 millimeters in size.
  • Management team with Canadian and Australian insight and access to both markets.

Arrow Projects, Australia

Pacton holds an interest in the Arrow Project having signed an LOI to acquire up to 80 percent ownership interest in Arrow Pilbara Pty Ltd., which is wholly owned by Arrow Minerals Ltd. (ASX:AMD). The project measures 609 square kilometers and sits in the eastern portion of Australia’s Pilbara gold region. Novo Resources Corp., De Grey Mining Ltd., and Kairos Minerals Ltd. (ASX:KAI), each have projects along the same gold mineralization structures, and sit adjacent to the Arrow Project.

Historical work

There has been historic geochemical data conducted on the property, the results of which indicate that there are three radiometric anomalies which have resulted in elevated gold found in streams and soil samples. There has been a reprocessing of radiometric surveys from the E47/3476 license, which highlighted seven conglomerate gold targets within the Mallina Basin. To date, four of the seven conglomerate targets still need to be explored.

Exploration

The company is in the process of obtaining two exploration licenses to supplement the two already in its possession. These licenses cover the prospective contact between the older Pilbara granite-greenstone terrain and the Fortescue Group rocks in the East Pilbara region.

Arrow Minerals has completed a review of exploration data that highlights nine conglomerate or base gold targets on the north and south sides of the property, which is where several five to 10 mm gold nuggets were found. The nuggets found in the Pilbara area are seldom attached to quartz and have a purity of 96 percent.

CTTR Gold, Australia

In February 2018, Pacton acquired the newly-formed CTTR Gold Pty Ltd, an Australian exploration company that held applications to nine tenement licenses for a property group in the Pilbara region. The advanced-stage 492-square-kilometer gold project sits within the Mallina and Marble Bar region in the Pilbara Craton. The land package is adjacent to properties held by Novo Resources and DeGrey.

Initial exploration in the region took place in the Purdy’s Reward tenement which is partially owned by Novo and Artemis Resources. The tenement has showings of conglomerate gold which are interpreted as fossil or paleo placer deposits which were formed as near shore marine alluvial gold now solidified into conglomerate rock.

Exploration

Pacton anticipates further exploration in the Mallina region, 120 kilometers east of the Purdy’s Reward project, once permits have been issued. The company’s priority will be to explore the northern extension of the De Grey’s Mallina Basin where gold nugget conglomerate beds of five to 80 meters in thickness at Louden’s Patch, Jarret Well and Steel Well have been discovered.

Additional Acquisitions in Pilbara Region

Over the course of May 2018, the company has made further moves towards strategic land acquisitions. Once completed, these acquisitions will make Pacton Gold the third largest landholder in the region, increasing Pacton’s land portfolio to over 2,250 square kilometers.

Impact Minerals Property

In May 2018, Pacton signed an LOI to acquire 100 percent of the shares in Drummond East Pty Ltd., which is owned by Impact Minerals Ltd. Drummond East holds seven granted tenement licenses in the Pilbara region that cover 1,126 square kilometers.

The mining leases provide the potential for immediate large-scale bulk sampling of mineralization. At the Glenn Herring Prospect, which is 10 kilometers west of Marble Bar, results from rock chip sampling showed values of up to 11.2 g/t gold. Previous exploration also indicates at least 90 kilometers of Fortescue Group conglomerates are occurring at- or near-surface on its granted licenses. Historical testing has also been conducted at the Shady Camp Well Prospect, Contact Creek Prospect and the Hardy Formation.

Friendly Creek Property

Looking to further increase its land holdings, Pacton has also signed a binding LOI to acquire 100 percent of the five mining leases and one granted exploration license at Friendly Creek from Gardner Mining Pty Ltd. The property is 31.36 square kilometers in size and is historically known as one of the richest areas for alluvial nuggets in the Pilbara Region. The site contains existing infrastructure that includes an operational camp facility.

Pacton will be reviewing the historical mining and exploration activities that have been conducted. To this effect, the company will be conducting geochemical tests and will be mapping the area to determine where mineral deposits are located. On top of this, Pacton will also dry blow and sweep the area with metal detectors to identify the presence of surficial gold nuggets.

Bellary Dome Acquisition

In June 2018, Pacton entered into a binding LOI with Marindi Metals Inc. to acquire 100 percent of the Bellary Dome exploration license. The property is located on the southern end of the Hamersley Basin and is surrounded by properties owned by Novo Resources. The Bellary Dome property covers 25 kilometers of the Mount Roe basalt contact and overlies the Bellary and Hardey formations as well. Additionally, over six coarse gold nuggets have been recovered from one area of the property and there are conglomerates that have been found on the property that are similar to those found at the Comet Well and Purdy’s Reward projects.

“The acquisition of Bellary Dome provides access to a significant strike length of highly prospective Hardy Formation and Mount Roe Basalts, where multiple flattened nuggets have been recovered proximal to the Bellary Formation conglomerate,” said Pacton Gold’s Interim President and CEO Alec Pismiris. “The property is surrounded by Novo Resources and with over six ounces of gold nuggets recovered from one alluvial trap site, that were pitted, flattened, and in the elongated “watermelon seed” shape, provides additional key priority exploration targets for Pacton.”

Management

Alec Pismiris — Interim President & CEO

Alec Pismiris, B.Comm, MAICD, IGIA, brings over 30 years experience in the securities, finance and mining industries and is currently a director of several ASX listed companies. Since 1990, Pismiris has served as a director and in senior management positions for numerous ASX listed companies, and notably was a founding shareholder and director of Papillon Resources Limited, which in 2014 was acquired by B2Gold for $615 million, and in addition Cardinal Resources Limited which discovered the Namdini Gold Project in Ghana and recently announced a Mineral Resource estimate of 7.4 million ounces of gold. Pismiris completed a Bachelor of Commerce degree at the University of Western Australia, is a member of the Australian Institute of Company Directors and an associate of The Governance Institute of Australia. Pismiris has participated numerous times in the processes by which boards have assessed the acquisition and financing of a diverse range of assets and has participated in and become familiar with the range of evaluation criteria used and the due diligence processes commonly adopted in the commercial assessment of corporate opportunities.

Dominic Verdejo — Chairman of the Board

Dominic Verdejo has over ten years of business experience in venture capital markets and has held various management roles in finance, investor relations, corporate development and administration of publicly traded mineral exploration companies. He currently serves as a Director of Bullion Gold Resources Corp.

Alfred (Alf) Stewart — Director

Alfred (Alf) Stewart, has a career spanning over 40 years in the resource and investment industries. Stewart’s career includes time spent as a geologist, stock exchange regulator, investment banker, analyst and investment advisor. He has worked for firms such as Bank of Montreal, Esso Minerals, Erickson Gold Mining, Canaccord Capital, Haywood Securities, Golden Capital, and Raymond James. He has been involved in financing mining companies for over two decades, including discoveries in the base and precious metals sectors. Stewart is also the President and Director of BlueBird Battery Metals Inc. (TSXV:BATT; US: BBBMF).

Peter Caldbick — Director

Peter Caldbick has been active in exploration and mining for the past 32 years throughout Northern Ontario, Quebec, Newfoundland and the Northwest Territories in the positions of VP Exploration, mine geologist, and technical consultant. Caldbick’s career has included VP of Exploration for Golden Chalice Resources, VP of Exploration for Liberty Mines Inc., and Chief Geologist for SGX Resources. He was recently with the Ontario Government involved in plans and permitting, as well as consultations with First Nations. He was directly responsible for building and managing the exploration teams that led to the discovery of Golden Chalice Resources’ Langmuir W4 Nickel deposit, Amador Gold Corp.’s Loveland nickel-copper discovery and Liberty Mine’s Hart East nickel deposit.

Richard Boulay, B.Sc. Geology — Director

Richard Boulay is a geologist with over 40 years of experience in the exploration and mining industries in Canada and internationally, including 15 years of mining and infrastructure financing experience gained with Bank of Montreal, Royal Bank of Canada and Bank of Tokyo. He has extensive experience in the management and financing of public companies in Canada and the United States.

Allan Folk – Director 

Mr. Folk brings over 35 years of extensive leadership experience in the Canadian mining finance industry to the Company. During his career, he has financed and advised both junior and advanced Canadian companies at the senior board or executive level. Mr. Folk is a graduate of the University of Wisconsin, and currently is Vice President of Brant Securities Ltd.  He is also a director of Monarca Minerals Inc., a director of Bonterra Resources Inc., and is the Chairman of Atlanta Gold Inc.

Alec Pismiris – Director

Mr. Pismiris is currently the Company’s Interim President and Chief Executive Officer.  He has over 30 years of experience in the securities, finance and mining industries and is currently a director of several ASX listed companies. Since 1990, Mr. Pismiris has served as a director and in senior management positions for numerous ASX listed companies and notably, was a founding shareholder and director of Papillon Resources Limited, which in 2014 was acquired by B2 Gold for $615 million. Mr. Pismiris was also a founding shareholder and director of Cardinal Resources Limited, which discovered the Namdini Gold Project in Ghana and recently announced a Mineral Resource estimate of 7.4 Million ounces of gold. Mr. Pismiris completed a Bachelor of Commerce degree at the University of Western Australia, is a member of the Australian Institute of Company Directors and a fellow of The Governance Institute of Australia. He has participated numerous times in the processes by which boards have assessed the acquisition and financing of a diverse range of assets and has participated in and become familiar with the range of evaluation criteria used and the due diligence processes commonly adopted in the commercial assessment of corporate opportunities.

Joseph Meagher, CA — CFO

Joseph Meagher is a Director at Triumvirate Consulting Corp., a financial consulting firm, where he specializes in accounting and financial reporting. He currently serves as the Chief Financial Officer and a Director for several publicly listed companies. Prior to joining Triumvirate, Meagher worked at Smythe Ratcliffe LLP as a manager focusing on publicly listed and private company audits, as well as staff training and development. He was a member of Smythe Ratcliffe’s IFRS conversion team as well as a technical reviewer for complex accounting topics. Meagher holds a CPA, CA designation and a Bachelor of Commerce from the University of British Columbia.

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