VANCOUVER, BC / ACCESSWIRE / July 6, 2020 / Lucky Minerals Inc. (TSXV:LKY)(OTC PINK:LKMNF)(FRA:LKY) ("Lucky" or the "Company") is pleased to announce that it has entered into a Definitive Option Agreement (the "Definitive Agreement") on the terms outlined in the Company's news release dated March 2, 2020. The Definitive Agreement allows the optionee exclusive rights to explore for copper deposits on the Fortuna 3, 4, 5, and 6 Concessions until January 23, 2021 followed by an earn in on copper targets with a potential to host deposits with greater than 500,000 tonnes of payable copper. For details of the option and earn-in readers should be referred to the Company's news release, dated March 2, 2020. Lucky retains a 100% interest in all primary-gold deposits and copper interests of less than a potential 500,000 tonnes of payable copper on the optioned concessions. This allows the Company the right to explore on the entirety of the project and to focus its efforts on gold targets in 2020. Lucky owns a 100% interest in the Fortuna concessions.
Lucky CEO, Adrian Rothwell, stated "This definitive agreement is testament to the quality and size of the Fortuna Concessions, which lie in a known prolific and underexplored gold and copper district in Ecuador. We look forward to working toward quickly advancing multiple copper targets on Fortuna and to leveraging this work to also advance gold targets."
Image: Location of Fortuna Concessions in southern Ecuador
This Agreement is subject to TSX Venture Exchange approval.
Image: Concessions under option.
Definitive Agreement
Lucky has entered into a Definitive Agreement on terms consistent with the Memorandum of Understanding outlined in the Company's news release on March 2, 2020. The Definitive Agreement has been refined to include only the Fortuna 3, 4, 5, and 6 Concessions.
The optionee may, over three phases, earn up to a 70% interest in a minimum of 500,000 tonnes of payable copper to be demonstrated in a NI43-101 compliant resource report. After creation of a joint venture the parties must jointly prepare a feasibility study demonstrating the above, with Lucky's costs to be capped at US$1,500,000.
Exclusivity Phase
An initial exclusivity period shall expire on January 23, 2021 at which time the parties may enter into an option and joint venture agreement on specific targets on a portion of the Fortuna 3, 4, 5, and 6 Concessions.
At the commencement of this initial exclusivity period a total of US$159,810 was contributed by the optionee towards the Fortuna Concession fees and there is a commitment to make certain minimum exploration activities to assess the claims, outlined above. These activities will include - but are not restricted to - mapping, sampling, geophysics and any work needed to generate drill targets.
During this exclusivity period, Lucky is entitled to explore gold and precious metal opportunities on these concessions in parallel with these copper exploration efforts.
Fortuna 3
Mapping and sampling to date at El Buitre (Fortuna 3) has identified a coarse-grained granite (known as the Tres Lagunas Granite) that has been intruded by a dacite quartz porphyry of Miocene age. Both intrusives show strong phyllic alteration with a central area of potassic alteration with disseminations and quartz veinlets of pyrite, chalcopyrite, and molybdenum. Rock chip sampling has returned consistent copper anomalies, and gold up to 1.0 g/t.
The dacite porphyry intrusion has been observed to have produced at least two generations of veins and breccias associated with characteristic porphyry type mineralization and wall-rock alteration. The vein types observed at El Buitre include B type veins (chalcopyrite-moly-pyrite) and D veins (quartz-pyrite-sericite). B veins appear to be mostly related to the potassic alteration area and are crosscut by the D type veins. Veins are often classified according to cross-cutting relations in conjunction with form.
The significance of these diverse vein types and breccias is that they highlight the diversity of hydrothermal fluids (events) over time. These fluids can contain metals that are deposited as disseminations and/or in veins in the host rocks. These disseminations and vein types, when mineralized, may show at surface as anomalous gold, copper and/or molybdenum mineralization. The Definitive Agreement allows the optionee to focus on the core copper mineralization at El Buitre and surroundings. The Company intends to initially explore for gold targets outside of the option area, and has noted two areas of interest for potential gold mineralization within the Fortuna 3 concession, Macuche and Respondedora, located approximately 4km to the south-east and south-west of the El Buitre copper-molybdenum-gold target.
The Macuche and Respondedora Areas
These areas lie south of the El Buitre Porphyry and can be observed in the figure below.
Image: Section of Fortuna 3 showing location of El Buitre Porphyry, Macuche and Respondedora areas
- The Respondedora area of mostly rhyolite is in contact with the Tres Lagunas granite. It hosts up to 20cm wide sigmoidal quartz veins. This geology continues to the SE and supports the historic gold anomalies in the area.
- The Macuche zone of mainly phyllites hosts a quartz vein of up to 1.5m thick. Further follow-up reconnaissance work is expected to be completed this year on these areas by the Company.
Fortuna 4, 5, 6
Limited historical geochemical reconnaissance in these concessions has outlined anomalous areas for copper and gold mineralization potential. Follow-up work consisting of stream sediments, prospecting and geological mapping is planned for this year by both the Company and the optionee.
Lucky is in the process of finalizing plans for an upcoming Phase II exploration program that will focus on gold targets on the entirety of the mineral concessions.
Lucky Appoints Ms Jeannine Webb as Chief Financial Officer
The Company is pleased to announce the appointment of Ms. Jeannine Webb as Chief Financial Officer. Ms. Webb replaces Mr. Robert Rosner as Interim Chief Financial Officer. We thank Robert for his contribution and welcome Ms. Webb to the Company. Jeannine Webb (CPA) has over 25 years of experience in the mineral exploration sector, and served as Director, Chief Financial Officer and Corporate Secretary for various private, junior "small cap" domestic and international public companies. She has a wide range of skills on financial management and regulatory reporting, and currently serves as CFO and Corporate Secretary for several Canadian TSX Venture companies with operations in Canada and the US, as well as private companies.
About Lucky
An exploration and development company targeting large-scale mineral systems in proven districts with the potential to host world class deposits. Lucky owns a 100% interest in the Fortuna and Emigrant Creek Projects.
The Company's Fortuna Project is a royalty-free 550km2 (55,000 Ha, or 136,000 Acres) exploration concession. Fortuna is located in a highly prospective, yet underexplored, gold belt in southern Ecuador.
The Emigrant Creek Project covers a 15 km2 area in an intensely altered and mineralized porphyry copper-gold-molybdenum system in southern Montana.
Qualified Person:
Victor Jaramillo, M.Sc.A., P.Geo., Lucky's Exploration Manager and a qualified person in accordance with National Instrument 43-101, is responsible for supervising the exploration program at the Fortuna Project for Lucky Minerals and has reviewed and approved the technical information contained in this news release.
ON BEHALF OF THE BOARD
"Adrian Rothwell"
Chief Executive Officer
Further information on Lucky can be found on the Company's website at www.luckyminerals.com and at www.sedar.com, or by contacting Adrian Rothwell, President and CEO, by email at [email protected] or by telephone at (866) 924 6484.
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.
Cautionary Statement Regarding Adjacent Properties and Forward-Looking Information
This news release contains forward-looking statements relating to the future operations of the Company and other statements that are not historical facts. Forward-looking statements are often identified by terms such as "will", "may", "should", "anticipate", "expects" and similar expressions. All statements other than statements of historical fact, included in this release, including, without limitation, statements regarding the future plans and objectives of the Company are forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Such factors include, but are not limited to: uncertainties related exploration and development; the ability to raise sufficient capital to fund exploration and development; changes in economic conditions or financial markets; increases in input costs; litigation, legislative, environmental and other judicial, regulatory, political and competitive developments; technological or operational difficulties or inability to obtain permits encountered in connection with exploration activities; and labor relations matters. This list is not exhaustive of the factors that may affect the Company's forward-looking information. Important factors that could cause actual results to differ materially from the Company's expectations also include risks detailed from time to time in the filings made by the Company with securities regulators.
The reader is cautioned that assumptions used in the preparation of any forward-looking information may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted, as a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of the Company. The reader is cautioned not to place undue reliance on any forward-looking information. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement. The forward-looking statements contained in this news release are made as of the date of this news release and the Company will update or revise publicly any of the included forward-looking statements as expressly required by Canadian securities law.
SOURCE: Lucky Minerals Inc.