Kestrel Gold - Grants Centerra Gold the Option to Earn a 75% Interest in the QCM Gold Property

Kestrel Gold Inc. ("Kestrel" or the "Corporation,"(TSXV:KGC) is pleased to announce the signing of an option agreement ("Agreement") with Thompson Creek Metals Inc. a wholly owned subsidiary of Centerra Gold Inc. ("Centerra"), whereby Centerra is granted the option to earn a 75% interest in the QCM gold property ("QCM") located in the in the Manson-Germanson area of central British Columbia

Rob Solinger, President and CEO of Kestrel, states: "We are pleased to have signed this Agreement which will see QCM advanced by a well funded and technically strong option partner. Positive results from previous reverse circulation drilling by the Corporation at QCM, combined with continued strength in the price of gold and Centerra's decision to enter into this Agreement reinforces Kestrel's belief in QCM."

QCM Project Highlights:

QCM is comprised of 8,729 hectares covering an approximate 15-kilometre strike length of the Manson Fault Zone which is thought to be a controlling structure for much of the gold mineralization in the district.

Peak values from historical drilling completed within the Main Zone were found within hole QCM04-002 which intersected an interval of 2.86 g/t Au over 110.95 metres, including a high-grade interval of 173 g/t Au over 1.5 metres, true widths unknown.

Prospecting during 2022 resulted in the discovery of the 14 Vein showing, drilling of which returned 2.33 g/t Au over 44.19 metres. Geology consists of silica and carbonate altered argillite cut by sheeted quartz veins. For details see Kestrel's October 25, 2022 news release: https://www.kestrelgold.com/news/oct-2-2022

Numerous historical showings occur throughout the project area, including Farrell where historical values of up to 1,777 g/t Au and 3,560 g/t Ag were returned from grab samples of a 3.0-metre wide quartz vein and Flagstaff where historical values of up to 5.9 g/t Au and 1,153 g/t Ag were reported for grab samples of quartz veins and stockworks.

Kestrel recently earned a 100% interest in the QCM Property. For details see Kestrel's March 22, 2024, news release: https://www.kestrelgold.com/news/march-22-2024

Recently completed logging and associated road building has significantly improved access throughout the property which is proving of significant value to exploration efforts.

Pursuant to the terms of the Agreement, Centerra has the right to acquire a 75% interest in the Property by making cash payments totaling $900,000 and incurring mineral exploration costs totaling $6,500,000 on QCM, over 5 years. Mineral exploration costs must include a minimum of 13,500 metres of diamond drilling or reverse circulation drilling on the Property. Centerra will be the project operator during the initial earn in period. If Centerra earns a 75% interest, then Kestrel and Centerra will enter into a standard joint venture agreement with Centerra and Kestrel sharing pro rata funding requirements.

In the event that either member of the joint venture is diluted to 10% or less then that member's interest will automatically convert to a 1.0% NSR Royalty over the Property, and their interest in the Property shall be transferred to the other member. The undiluted member will have the right, exercisable at any time, to purchase 50% of the NSR Royalty for $1,000,000.

About Kestrel Gold

Kestrel Gold Inc. is an exploration company headquartered in western Canada and focused on the Canadian Cordillera. Kestrel has earned a 100% interest in the QCM Property which is an orogenic gold target located in the Manson-Germanson placer district and are earning a 100% interest in the Fireweed Property located in the Babine Lake area, an advanced stage silver rich polymetallic epithermal target. Kestrel also owns a 100% interest in the KSD Property which is an orogenic gold target located in the Yukon portion of the Tintina Gold Belt. Kestrel is listed on the TSX Venture exchange under the symbol KGC. Readers are encouraged to refer to the Corporation's website "www.kestrelgold.com" for further information.

Qualified Person

Derek Torgerson P.Geo., a Qualified Person as defined by National Instrument 43-101, has reviewed and approved the technical information contained in this news release.

Forward-Looking Statements

The information and statements in this news release contain certain forward-looking information. This forward-looking information relates to future events or the Corporation's future performance including exploration activity that could take place on the Corporation's properties or projects. This forward-looking information is subject to certain risks and uncertainties and may be based on assumptions that could cause actual results to differ materially from those anticipated or implied in the forward-looking information. The Corporation's forward-looking information is expressly qualified in its entirety by this cautionary statement. Except as required by law, the Corporation undertakes no obligation to publicly update or revise any forward-looking information.

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.

For further information contact:

Rob Solinger, President, and CEO
Office: (403) 816-2141
Email: rob@kestrelgold.com

SOURCE: Kestrel Gold Inc.



View the original press release on accesswire.com

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