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, Quadro Resources Ltd (TSXV: QRO) (OTCQB: QDROF) (FSE: G4O2) ("Quadro" ) that a soil sampling and prospecting survey has been initiated on the Careless Cove property (the Property) located southwest of Glenwood in east-central Newfoundland. Quadro acquired an option to earn a 100% interest in the claim licenses from Metals Creek Resources Corp. (See MEK News Release dated August 10, 2020) The terms of the acquisition are outlined as follows:
- To acquire MEK's interest, QRO will issue to MEK a total $100,000 and 1,500,000 shares according to the following schedule:
a) $15,000 and 300,000 on signing; (Paid)
b) $20,000 and 300,000 shares on the first anniversary;
c) $20,000 and 400,000 shares on the second anniversary; and
d) $45,000 and 500,000 shares on the third anniversary
- Once QRO is vested at 100% by meeting all the payments above, MEK will retain a 2.0% Net Smelter Return (NSR) royalty on any future mineral production. QRO will have the right to purchase 50% of the NSR from MEK for $1,000,000.
The Property consists of two claim groups located 2 km apart. MEK initially staked the claim licenses to cover two areas of previously known gold occurrences described below.
The Property is located within the Central Newfoundland Gold Belt, eleven km southwest of New Found Gold's (NFG.V) Keats Zone where drilling is defining a very high-grade mineralized zone which includes recent intersections up to (see NFG press release dated April 20, 2021). Quadro's claim licenses are partially surrounded by NFG's Queensway Project and are immediately west of the south-southwest striking Appleton Fault Zone corridor, which hosts the Keats Zone mineralization. (Note - Mineralization hosted on the Queensway Project is not necessarily indicative or representative of the mineralization that may be hosted on the Company's property.)
Eastern Claim Block (Careless Cove) - Previous prospecting by MEK in 2020 located two areas of gold mineralization (see MEK news release dated July 30, 2020).Occurrence #1 is comprised of quartz breccia with disseminated and vein hosted pyrite/arsenopyrite with minor stibnite. Three samples taken from outcrop assays are as follows:
|Sample Number||g/t Au|
Follow-up prospecting located rubble (occurrence #2) approximately 50 meters away from occurrence #1 Two samples of this material had the following results.
|Sample Number||g/t Au|
Western Claim Block (Yellow Fox) - Initial prospecting was carried out by Metals Creek in 2011, resulting in a concentration of highly anomalous gold values with one sample returning an assay of 59.413 g/t Au (main Yellow Fox showing) (see MEK press release dated June 22, 2011). This led to an enhanced work program which included limited soil sampling and trenching. Trenching was completed across the mineralization and initial sampling consisted of 13 selective grab samples taken throughout the trenches with assay values ranging from 214 ppb to 1877 ppb Au and up to 11.1 % Sb, 5.5% Pb, 7 % Zn and 72.9 g/t Ag. The trenches were then channel sampled along their length using a diamond bladed rock saw. The best result from the channels were fromtrench #1 which assayed 0.306 g/t Au over 26.82m (a composite from 29 continuous samples) and 4.57% Sb over 1.0m. (see Newfoundland Geoscience Resource Atlas Geofile Number: 002D/0779). These results were very encouraging and indicated the potential for a more widespread gold system on the Yellow Fox claim group. No additional work has been carried out since 2011.
Alexander (Sandy) Stares states, "This option agreement is one of two option agreements (the other being the Clarkes Brook option with General Gold) that gives MEK and its shareholders exposure to the Central Newfoundland Gold Belt."
Wayne Reid, P. Geo, a Director for the Company and a qualified person as defined in National Instrument 43-101, is responsible for this release, and supervised the preparation of the information forming the basis for this release.
Analyses were performed by Eastern Analytical of Springdale, NL with ISO 17025 accreditation. Samples were transported in sealed bags to Eastern and all samples were assayed using industry-standard assay techniques for gold. Gold was analyzed by a standard 30 gram fire assay with an AA finish.
(Note: The surface grab samples described in this news release are selective by nature and are unlikely to represent average grades of the property).
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In addition to its portfolio of projects, Metals Creek also holds a position of equities in other companies such as O3 Mining (OIII), Sokoman Minerals (SIC), Quadro Resources (QRO), Anaconda Mining (ANX), Benton Resources (BEX), White Metal Resources (WHM), Trifecta Gold (TG), Manning Ventures (MANN), Magna Terra Minerals (MTT), General Gold (GGLD) as well as others.
Metals Creek Resources Corp. is a junior exploration Corporation 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 Exchange under the symbol "MEK". Metals Creek has earned a 50% interest in the Ogden Gold Property from Newmont Corporation, including the former Naybob Gold mine, located 6 km south of Timmins, Ontario and has an 8 km strike length of the prolific Porcupine-Destor Fault (P-DF). In addition, Metals Creek has signed an agreement with Newmont Corporation, where 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 Corporation's website. Parties interested in seeking more information about properties available for option can contact the Corporation at the number below.
Additional information concerning the Corporation is contained in documents filed by the Corporation 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/82123