Taiga Gold, SKRR Execute Option Agreement for Leland Gold Project, Saskatchewan
Thursday, May 21, 2020 6:00 AM
CRANBROOK, BC / ACCESSWIRE / May 21, 2020 / Taiga Gold Corp. (CSE:TGC) ("Taiga") has executed an option agreement with SKRR Exploration ("SKRR":CSE) whereby SKRR may earn up to a 75% interest in the Leland property (the "Property") located 100 km east of La Ronge, northern Saskatchewan. Under terms of the agreement (subject to regulatory approval), SKRR may earn its' interest in the 10,000ha property by completing exploration expenditures of $3,000,000, making cash payments of $500,000 and issuing 1,500,000 voting class common shares to Taiga over a 4 year period. Property highlights include numerous high-grade gold occurrences including up to 60 g/t (1.75 oz/T) gold associated with structurally hosted quartz veins. Details of the option agreement are outlined below.
In 2019 Taiga completed a three-phase geological and geophysical program at Leland. Highlights from the program include:
- Gold mineralization grading up to 5.4 g/t Au over 0.65 m within 2.1 g/t Au over 3.22 m (channel sample) from the Irving trench along the Simon-Irving Trend.
- Discovery of 5 new gold-mineralized occurrences along the Simon-Irving trend grading between 113 ppb Au and 3.5g/t Au.
- Soil geochemical results proximal to the Leland showing (SMDI-2390) support samples collected in 2015 and delineate a new zone of anomalous soils to the west of the Leland Showing and northeast of the Simon Showing (SMDI-2388) that are targets for future follow up work.
- Recent staking by Taiga included claims overlying the Duck Lake Occurrence (SMDI 1731) covers two quartz stockwork zones within a shear with the Main Zone traced on surface for 180m. Limited historical grab sampling returned values up to 3.2 g/t Au.
- Planning is currently underway for the 2020 field season.
Some of the above results were taken directly from the SMDI descriptions. Management cautions that historical results were collected and reported by past operators and have not been verified nor confirmed by a Qualified Person, but form a basis for ongoing work in the Leland property area.
Leland Property History
The Leland Property hosts several zones of orogenic gold mineralization with good exploration potential. Historic work in the western part of the Leland Property has identified numerous gold-bearing quartz veins with notable grades including the Leland Lake South Zone, which hosts grab samples ranging from trace values to up to 32.8 g/t Au and 8.6 g/t Au; and the Simon/Irving Lake Zone, which returned up to 60 g/t Au and 53 g/t Au from within a 2km x 600m shear zone centered along an open- ended contact between mafic volcanic and intrusive rocks. Near the new eastern limit of the property, known vein-hosted mineralization at the Sun Zone returned values ranging from trace quantities to up to 8 g/t Au. Gold-bearing shear zones at this location are proximal to mafic volcanic and intrusive rock units that also contain VMS-style base metal mineralization. None of the showing areas have been drill-tested but trenching indicates they contain structurally-controlled mineralization and are open along strike. The presence of amphibolite-grade meta-volcanic and associated meta-intrusive rocks hosting well-defined shear zones are considered positive indicators for the presence of orogenic gold deposits. The mineralization, host rocks and structural framework are similar to gold deposits in the region such as the nearby Seabee Gold Operation. Additionally, this prospective geology is considered to be underexplored for 30 km of strike length within the current Leland property boundaries. Management cautions that past results or discoveries on proximate lands are not necessarily indicative of the results that may be achieved on the Leland property.
Leland Option Agreement Details:
Under the Agreement, SKRR may earn-in up to a 51% interest in the Property by making certain staged cash payments, share payments of common shares in the capital of SKRR to Taiga and exploration expenditures over a period as follows: (i) $30,000 in cash and 250,000 common shares upon regulatory approval of the Transaction and the Agreement (the "Approval Date"); (ii) $100,000 in exploration expenditures, $25,000 in cash, 250,000 common shares on or before December 31st, 2020 and (iii), $600,000 in exploration expenditures (totalling $700,000) $165,000 cash and 250,000 shares on or before December 31, 2021; (iv) and $800,000 in exploration expenditures (totalling $1,500,000), $280,000 in cash and 250,000 common shares on or before December 31, 2022.
Taiga will be Operator of the project until SKRR has earned a $51% interest.
SKRR may earn-in up to an additional 24% (75% total) interest in the Property by making additional exploration expenditures of $1,500,000 on the Property and issuing 500,000 common shares of SKRR to Taiga on or before December 31, 2023.
Upon SKRR earning an initial 51% interest in the Property, pursuant to the Agreement, SKRR and Taiga will use commercially reasonable efforts to negotiate and execute within thirty days a joint venture agreement for the purpose of jointly carrying out exploration, evaluation and development (if applicable) of the Property.
Charles C. Downie, P.Geo., a "qualified person" for the purposes of National Instrument 43-101 - Standards of Disclosure for Mineral Projects, and a Director of Taiga Gold Corp., has reviewed and approved the scientific and technical disclosure in the news release.
About Taiga Gold Corp
Taiga Gold Corp was created through a plan of arrangement with Eagle Plains Resources Ltd. and owns 5 projects targeting gold in the area near the Seabee Gold Operation, owned and operated by SSR Mining Inc. (formerly Silver Standard Resources Inc.) ("SSRM"). Taiga's flagship "Fisher" property is currently being explored by SSRM under option from Taiga.
Taiga's objective is to focus on the exploration and development of its gold projects located adjacent to the Seabee Gold Operation and along the Tabbernor Fault structure in eastern Saskatchewan, a highly-prospective mining jurisdiction which was recently recognized by the Fraser Institute as the second best place in the world in terms of Investment Attractiveness. Throughout the exploration and development process, our mission is to help maintain prosperous communities by exploring for and discovering resource opportunities while building lasting relationships through honest and respectful business practices.
On behalf of the Board of Directors
"Tim J. Termuende"
President and CEO
For further information on TGC, please contact Mike Labach at
1 866 HUNT ORE (486 8673)
Email: [email protected] or visit our website at http://taigagold.com
Cautionary Note Regarding Forward-Looking Statements
Neither the CSE nor any other regulatory body has reviewed or approved the contents of this news release. This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming financings, work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore, involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.
SOURCE: Taiga Gold Corp.