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Commander Resources Ltd. (TSXV: CMD) ("Commander") is pleased to announce that it has granted Southern Empire Resources Corp. ("Southern Empire") an option to earn a 100% interest in three mineral claims (1,750 ha) in Durango, Mexico. The Pedro property is located 100 Km from Torreon, Mexico in the northeastern part of the State of Durango and approximately 30 km west of the town of Mapimi and covers a large multi-kilometre epithermal-style gold target. The wholly owned property was acquired by Commander in 2016 from Bearing Lithium.
Highlights:
- Option encompasses 1,750 ha, all 100% owned by Commander through its Mexican subsidiary.
- Total consideration for the option is $700,000 staged over four payments (3 years) and 100,000 shares.
- Total work expenditures of $1,500,000 including $400,000 in year 1.
- A 2% NSR royalty with no buydown provision.
Deal Terms:
Southern Empire has been granted a right to earn a 100% interest in the Pedro project conditional on making staged payments totalling $ CDN 700,000 as follows: $25,000 and 100,000 shares on completion of a definitive agreement, $125,000 on the first agreement anniversary, $250,000 on the second anniversary and $300,000 on the third anniversary. In addition, Southern Empire must complete $ CDN 1,500,000 in exploration expenditures including $400,000 within the first year of the agreement. Southern Empire has the right to substitute share payments of equivalent value for all cash payments due except for the initial payment.
The completion date will be triggered by receipt of all necessary regulatory approvals including the approval of the TSX Venture Exchange, completion of due diligence including title opinions and execution of a definitive agreement.
Robert Cameron, President and CEO states: "Commander is pleased to welcome Sothern Empire as a project partner on our Pedro Gold project. Our work since acquisition in 2016 has refined drill ready targets in this large epithermal-style gold target and through this agreement will see them drill tested. Furthermore, David Tupper, VPX for Southern Empire was the initial discoverer of Pedro and brings a wealth of knowledge and local experience to the project."
About Pedro
The Pedro epithermal-style gold system is outlined at surface by a combined gold (>10 ppb) and arsenic (> 100 ppm) soil anomaly with dimensions of 4000 metres by 1000 metres. Outcrop exposure comprises prominent hematite-stained silica-rich ridges of angular chalcedony fragments and silicified sedimentary rocks within an angular course breccia. The mineralization extends beneath post-mineral volcanic rocks, colluvium (range front fanglomerate) and alluvium to the north and east. The host rock to these breccias is mostly Ahuichila Formation conglomerate. Historical rock sampling of the exposed zones returned gold values in rock from background levels to a maximum of 2.3 ppm (58 greater than 0.25 ppm and 11 greater than 1 ppm). IP geophysics outlined the known zones as elevated chargeability zones and identified discreet deep features below the conglomerate. Results indicate that some surface exposed zones are stratabound along the basal contact of the Ahuichila formation while adjacent zones have a deep vertical expression reflecting possible feeder structures. A newly identified soil anomaly to the northwest is hosted within Aurora Formation limestone.
Rock textures and the local presence of sinter suggest the upper levels of an epithermal system is exposed at surface with potential for bulk mineable heap leach targets. Deeper vertical zones beneath some surface exposures are interpreted to be deep feeders within the system and where higher grades may be targeted.
QA/QC
Current and historical samples mentioned in this release were prepared and analyzed by ALS Chemex at its labs in Chihuahua, Mexico, and Vancouver, Canada. Soils were analyzed as part of a multi-element inductively coupled argon plasma (ICP) package using aqua regia digestion with over-limit results being reanalyzed with assay procedures using ICP-AES. Gold analyses for rocks were performed on a 30-gram sub-sample by fire assay with an ICP-AES finish.
Robert Cameron, P. Geo. is a qualified person within the context of National Instrument 43-101 and has read and takes responsibility for the technical aspects of this release. In addition, Mr. Cameron was also the QP for the previous operator.
About Commander Resources:
Commander Resources is a Canadian focused exploration company that has leveraged its success in exploration through partnerships and sale of properties, while retaining equity and royalty interests. Commander has a portfolio of base and precious metal projects across Canada. Commander also retains royalties from properties that have been partnered, optioned or sold. On behalf of the Board of Directors,
Robert Cameron, P. Geo.
President and CEO
For further information, please call:
Robert Cameron, President and CEO
Toll Free: 1-800-667-7866
info@commanderresources.com
Twitter: @CommanderCMD
Neither 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 include forward-looking statements that are subject to risks and uncertainties. All statements within, other than statements of historical fact, are to be considered forward looking. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, continued availability of capital and financing, and general economic, market or business conditions. There can be no assurances that such statements will prove accurate and, therefore, readers are advised to rely on their own evaluation of such uncertainties. We do not assume any obligation to update any forward-looking statements except as required under the applicable laws.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/91296
