Surge Exploration Inc. reports that at the request of IIROC the Company wishes to clarify certain disclosure in its December 6, 2019 news releases.
Surge Exploration Inc. (the “Company” or “Surge”) (TSXV:SUR, OTC:SURJF, FRA:DJ5C) reports that at the request of IIROC the Company wishes to clarify certain disclosure in its December 6, 2019 news releases titled “Surge Acquires Additional Land Nearby its Poly-Metallic Caledona Project in British Columbia”. Specifically in the news release reported the following “historical estimate”:
Historical Estimate: Underground development by Cominco outlined possible reserves of 68,000 tonnes grading 704.2 g/mt tonne Ag, 6.1 % Cu, 7.45 % Zn, 0.6 % Pb and 0.34 g/mt Au in a 3 to 5 metre wide zone over a strike length of 100 metres (George Cross News Letter #221, 1981; Statement of Material Facts July 5, 1972 – North Island Mines Ltd., D.C. Malcolm, April 24, 1972). Later work has expanded the surface mineralized zone for a strike length of 600 metres over a 300-metre width. (George Cross Newsletter #221, 1981).
The disclosure of the “historical estimate” did not comply with the requirements of NI 43-101, 2.4 – Disclosure of Historical Estimates. Specifically, the news release:
– Did not comment on the relevance and reliability of the historical estimate;
– Disclose to the extent known, the key assumptions, parameters, and methods used to prepare the historical estimate;
– Did not state whether the historical estimate uses categories other than the ones set out in sections 1.2 and 1.3 and, if so, includes an explanation of the differences;
– Did not includes any more recent estimates or data available to the issuer;
– Did not comments on what work needs to be done to upgrade or verify the historical estimate as current mineral resources or mineral reserves; and
– Did not state with equal prominence that:
(i)a qualified person has not done sufficient work to classify the historical estimate as current mineral resources or mineral reserves; and
(ii)the issuer is not treating the historical estimate as current mineral resources or mineral reserves.
The Company retracts all disclosure relating to the disclosure of the historical estimate.
J.W. (Bill) Morton, professional geoscientist, a qualified person within the context of National Instrument 43-101, has reviewed this news release and concludes it correctly reflects information as reported in the various news releases and assessment reports from which it was derived and approves the scientific and technical disclosure cited in the news release.
About Surge Exploration Inc.
The Company is a Canadian-based mineral exploration company which has been active in the resource sector in British Columbia and elsewhere in Canada.
On Behalf of the Board of Directors
President & CEO
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 news release may contain forward-looking statements which include, but are not limited to, comments that involve future events and conditions, which are subject to various risks and uncertainties. Except for statements of historical facts, comments that address resource potential, upcoming work programs, geological interpretations, receipt and security of mineral property titles, availability of funds, and others are forward-looking. Forward-looking statements are not guarantees of future performance and actual results may vary materially from those statements. General business conditions are factors that could cause actual results to vary materially from forward-looking statements.