VANCOUVER, Feb.16, 2017 /CNW/ -
Gitennes Exploration Inc. ("Gitennes" or the "Company") - (TSXV –
GIT) announces that it has entered into a Letter Agreement (the "
Agreement") with a private company, Omineca Gold Ltd. ("Omineca"),
whereby the Company will be granted the exclusive right to acquire
an undivided 100% interest in and to Omineca's advanced stage, high
grade Snowbird gold project, located near Fort St. James, British Columbia (the
"Snowbird Project").
Snowbird Project Highlights
Past exploration activities carried out on the Snowbird Project
include:
- 91 diamond drill holes totaling 9,340 meters;
- 164 percussion holes totaling 2,535 meters;
- Extensive soil sampling, geological mapping and
geophysics;
- Digitized database incorporating historical work from 1975
onwards; and
- Diamond drilling permits in place.
Selected historical diamond drill results include:
- 23.9 g/t gold over 0.91 meters;
- 18.5 g/t gold over 2.44 meters;
- 48.0 g/t gold over 1.0 meters.
|
Readers are
cautioned that a "qualified person" (as defined by National
Instrument 43-101) has not yet completed sufficient work to be able
to verify the historical information, and therefore the information
should not be relied upon.
|
Overview of the Snowbird Project
The Snowbird Project consists of eight mineral tenures,
comprising an aggregate area of 2,021 hectares, located
approximately 20 kilometers west of Fort
St. James, British Columbia. The project is accessible
year round via paved and dirt roads and sits at a relatively low
elevation with moderate relief (not exceeding 190 meters) allowing
access to all parts of the property and enabling cost effective
diamond drilling programmes.
Mineralization
The Snowbird Project hosts structurally controlled orogenic gold
mineralization. Gold occurs in veins and stringer zones localized
within the northwest-trending Sowchea Fault Zone and associated
subsidiary structures. Better developed quartz-carbonate
veins and stringer zones, and higher gold grades, occur at the
hangingwall and footwall contacts of the host shear zone.
Rare coarse gold and massive stibnite is associated with
cross-cutting north-south faults, which have not been adequately
tested by prior drill orientations. Gold mineralization also
occurs in a poorly explored, narrow elongate body of
sericite-muscovite altered quartz diorite to tonalite intrusive
outcrops east of the Sowchea Fault Zone. The major host
lithologies on the Snowbird Project are argillite, chert,
Alpine-type ultramafics (harzburgite), andesite, granodiorite,
diorite and minor limestone.
Drilling in previous campaigns has been carried out over
approximately 800 metres of the prospective Sowchea Fault Zone to a
vertical depth of 180 metres. Drill hole X 86-7 intersected
1.0 metre of 24.5 g/t gold from 28.04 m to 29.04 metres and hole X
88-13 intersected 1.0 metre of 48.0 g/t from 109.72 m to 110.72 m
(Readers are cautioned that a "qualified person" (as defined by
National Instrument 43-101) has not yet completed sufficient work
to be able to verify the historical information, and therefore the
information should not be relied upon).
The Agreement
Subject to acceptance for filing of the Agreement by the TSX
Venture Exchange (the "TSX-V"), the Agreement provides that
Gitennes may earn a 100% interest in the Snowbird Project by making
share payments to the shareholders of Omineca and incurring certain
exploration expenditures as follows:
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Date for
Completion
|
Number of Common
Shares
to be Issued
|
Minimum
Exploration
Expenditures to be Incurred
|
|
Upon TSX-V acceptance
for filing of the Option Agreement
|
6,000,000
|
Nil
|
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On or before
September 30, 2018
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2,000,000
|
$500,000
|
|
On or before
September 30, 2019
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2,000,000
|
$500,000
|
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On or before
September 30, 2020
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2,000,000
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$500,000
|
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TOTAL:
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12,000,000
|
$1,500,000
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Upon making the above share issuances and exploration
expenditures, Gitennes will own 100% of the Snowbird Project
subject only to a 2% net smelter returns ("NSR") royalty to a
maximum of $1,300,000 and reverting
to a 1% NSR royalty with no cap thereafter. Any shares issued
by the Company in connection with the exercise of the Option will
be subject to a hold period in Canada of four months and a day from the date
of issuance.
Appointment of Director and Grant of Incentive Stock
Options
The Company also announces the appointment of Mr. Jesse Grady to its Board of Directors.
Mr. Grady is a professional geologist and is currently Vice
President of Exploration for Redstar Gold Corp. Mr. Grady
previously held positions as an exploration geologist, project
manager, and geological consultant for various exploration
companies through feasibility stage projects within Alaska and Nevada. He is a co-founder and President
of Intercept Minerals Corp. and was a partner in YKPS Professional
Services LLC, which provides exploration services to companies
working in Alaska. Mr. Grady
holds a BSc and an MSc in Geology from the University of Nevada, Las Vegas, and is a member of
the American Institute of Professional Geologists.
Pursuant to the Company's stock option plan, the Company intends
to grant 1,500,000 incentive stock options to its directors and
officers. Each option is exercisable at $0.05 per share and has a term of five years.
About Gitennes Exploration Inc.
Gitennes is in the
business of exploring for mineral deposits. Gitennes acquires
properties directly by staking, through option agreements with
prospectors or other exploration companies, and through
reconnaissance programmes.
Qualified Person
The scientific and technical information contained in this news
release has been reviewed and approved by L. Mireku, MSc
(P.Geo.), who is a "qualified person" within the meaning of
National Instrument 43-101.
For further information on the Company, readers are referred to
the Company's website at www.gitennes.com and its Canadian
regulatory filings on SEDAR at www.sedar.com.
On behalf of the Board of Directors of
Gitennes Exploration Inc.
"Ken Booth"
Ken
Booth
President
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 news release.
Cautionary Note Regarding Forward-Looking Information
This news release includes certain statements that constitute
"forward-looking information" within the meaning of applicable
Canadian securities laws concerning the business, operations and
financial performance and condition of the Company. All
statements in this news release that are not purely historical are
forward-looking statements and include any statements regarding
beliefs, plans, expectations and orientations regarding the
future. Often, but not always, forward-looking statements can
be identified by words such as "pro forma", "plans", "expects",
"may", "should", "budget", "schedules", estimates", "forecasts",
"intends", "anticipates", "believes", "potential" or variations of
such words including negative variations thereof and phrases that
refer to certain actions, events or results that may, could, would,
might or will occur or be taken or achieved. Such
forward-looking statements include, among others, statements as to
the anticipated business plans and timing of future activities of
the Company, including the exercise of the Option to acquire the
Snowbird Project and to conduct exploration activities
thereon. Actual results could differ from those projected in
any forward-looking statements due to numerous factors including
risks and uncertainties relating to exploration and development and
actual results of exploration activities; the ability of the
Company to obtain additional financing; delays in obtaining
governmental and regulatory approvals (including of the TSX-V),
permits or financing; the need to comply with environmental and
governmental regulations; potential defects in title to the
Company's properties; fluctuations in the prices of commodities and
precious metals; operating hazards and risks; environmental issues
and liabilities; and competition and other risks and uncertainties
of the mining industry. Although the Company believes that
the beliefs, plans, expectations and intentions contained in this
news release are reasonable, there can be no assurance that those
beliefs, plans, expectations or intentions will prove to be
accurate. Readers should consider all of the information set
forth herein and should review the Company's periodic reports filed
from time-to-time with Canadian securities regulators. These
reports and the Company's filings are available at
www.sedar.com.
Readers are cautioned not to place undue reliance on
forward-looking statements. The forward-looking
statements contained in this news release are made as of the date
of this news release and, except as otherwise required by law, the
Company undertakes no obligation to update the forward-looking
statements contained herein, or to update the reasons why actual
results could differ from those projected in these forward-looking
statements.
SOURCE Gitennes Exploration Inc.