Metals Creek Resources Corp. is pleased to announce that the company has been advised by its option partner General Gold Resources Inc. that it has received all drilling permits needed to commence its current Clark’s Brook exploration program. The Clark’s Brook property is comprised of 31 claim units in central Newfoundland and surrounded on three sides by the Queensway Project currently being explored and …
Metals Creek Resources Corp. (TSXV: MEK) (OTCQB: MCREF) (FSE: M1C1) (the “Company” or Metals Creek) is pleased to announce that the company has been advised by its option partner General Gold Resources Inc. (C-GGLD) (General Gold) (formerly, CellStop Systems Inc.) (CSE: GGLD) that it has received all drilling permits needed to commence its current Clark’s Brook exploration program. The Clark’s Brook property is comprised of 31 claim units in central Newfoundland and surrounded on three sides by the Queensway Project (see map below), currently being explored and drilled by New Found Gold Corp.
The Clarks’ Brook property is under option from Metals Creek. In order to maintain the Option Agreement in good standing, General Gold must issue an aggregate of 1,500,000 common shares of General Gold (200,000 received) and make cash payments totaling $225,000 ($50,000 received) over a three-year period. If General Gold does not make any or all of the cash payments or issue any or all of the common shares, it will be in default under the Option Agreement and all right and title to the Clark’s Brook Property shall remain with MEK. If the option is exercised in accordance with the terms of the Option Agreement, General Gold will reserve to MEK a 2% net smelter royalty (the “NSR”) on the mineral claims, provided, however, that General Gold shall have the right at any time to purchase from MEK 1% of the NSR in consideration for a one-time payment of the sum of $1,000,000.
“Here at General Gold, we are excited to continue to explore Clark’s Brook, especially given all of the positive activity currently underway near us in Newfoundland. Our current program is fully funded and will follow up on the successes of the previous drill campaigns undertaken in 2017-2019. There has never been a better time to be exploring in Newfoundland. The Fraser Institute clearly agrees, recently naming Newfoundland and Labrador among the top ten worldwide mining jurisdictions,” said President, Michelle Gahagan.
The Clark’s Brook property consists of claims originally staked in 2016, covering two auriferous showings first discovered in 2003.
As part of the earlier geological mapping and prospecting program, discoveries were made at both the Clark’s Brook East (“CBE“) and West (“CBW“) zones. On the CBE gold zone, seven representative grab samples were attained, each comprised of material from several mineralized boulders that assayed between 2.98g/t and 24.5g/t gold with an average of 7.93g/t gold. The CBW gold zone discovery was first made in mineralized boulders returning 8.9g/t and 9.28g/t gold.
The gold mineralization on the CBE area occurs in moderately to strongly silicified siltstones brecciated by a network of thin, commonly vuggy quartz veins. Boulders at the site, ranging from 0.5 to 2m3 in size, host 15-25% vein material with trace to minor pyrite and arsenopyrite. Grab samples range between 0.25g/t and 24.5g/t, with elevated silver, molybdenum, arsenic and antimony. The underlying bedrock contains less mineralization and silicification with smaller and less concentrated vein material but still carries gold mineralization to 1.3g/t gold. At the CBW zone, grab samples of outcrop and boulders returned assays ranging from anomalous to 9.28g/t gold with anomalous values in silver, lead, zinc and cadmium.
Garry Clark, P. Geo., of Clark Exploration Consulting, is the “qualified person” as defined in NI 43-101, who has reviewed and approved the technical content in this press release.
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MEK has current option agreements on a number of its projects including: Squid (Yukon) to Manning Ventures Inc., Flint Lake (Ontario) to Manning Ventures Inc, Clarks Brook (NL) to General Gold and Yellow Fox/Careless Cove (NL) to Quadro Resources.
Metals Creek Resources Corp. is a junior exploration company incorporated under the laws of the Province of Ontario, is a reporting issuer in Alberta, British Columbia and Ontario, and has its common shares listed for trading on the TSX-V Exchange under the symbol “MEK”. Metals Creek has earned a 50% interest in the Ogden Gold Property from Newmont Corporation, which covers an 8 km strike length of the prolific Porcupine-Destor Fault (P-DF) and includes the former Naybob Gold mine, located 6 km south of Timmins, Ontario. In addition, Metals Creek has signed an agreement with Newmont Corporation, whereby Metals Creek can earn a 100% interest in the past producing Dona Lake Gold Project in the Pickle Lake Mining District of Ontario.
Metals Creek also has multiple quality projects available for option in Ontario and Newfoundland which can be viewed on the Company’s website. Parties interested in seeking more information about properties available for option can contact the Company at the number below.
Additional information concerning the Company is contained in documents filed by the Company with securities regulators, available under its profile at www.sedar.com.
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.
Alexander (Sandy) Stares, President and CEO
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/84417
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