VANCOUVER, BC, Dec. 14, 2021 /CNW/ - MAS Gold Corp. ("MAS Gold")
(TSXV: MAS) and Comstock Metals Ltd. ("Comstock" – TSX-V: CSL) are
pleased to announce the signing of a non-binding letter of intent
under which Comstock has agreed to sell 100% of its interest
in its Preview SW gold deposit and property ("Preview SW Property")
to MAS Gold in consideration of the issuance of 30,000,000 common
shares in MAS Gold (the "Proposed Transaction").
Comstock's 843 hectare Preview SW Property is contiguous
with MAS Gold's Preview-North Property in the La Ronge Gold Belt of
northeastern Saskatchewan (see
Figure 1). The Preview SW Property and portions of the
Preview-North properties are located within the Mineral Exploration
Zone of Lac La Ronge Provincial Park.
The addition of the Preview SW Property is synergistic with MAS
Gold's deposits, significantly expanding MAS Gold's mineral asset
base in the La Ronge Gold Belt.
The Preview SW Property's gold deposit hosts historical
resources, at a 0.50 gram/tonne gold (g/t Au) cut-off grade
(Technical Report, Simpson 2016 1):
- An historical Indicated Mineral Resource containing 158,300
ounces of gold (2.61 million tonnes grading 1.89 g/t Au); and
- An historical Inferred Mineral Resource containing 270,800
ounces of gold (5.70 million tonnes grading 1.48 g/t Au).
Upon the closing of the Proposed Transaction Comstock will have
the right to appoint one director for a minimum of two years.
Comstock will also provide additional funding in the amount of
$200,000, to be spent in Q1 2022 in
conjunction with input from MAS Gold, exploring its Preview SW
Property prior to closing of the Proposed Transaction. A definitive
agreement will be signed prior to January
15th,2022 and closing is anticipated in March, 2022 after
both companies' AGM and shareholder vote anticipated to take place
in late February, 2022.
Jim Engdahl, MAS Gold's President
and CEO remarked, "We are very excited with the friendly
acquisition of the Preview SW Property's gold deposit located
within 10 kilometres of MAS Gold's North
Lake gold deposit, the recently acquired former Contact Lake
gold mine and Point gold deposit. Upon completion of the Proposed
Transaction this high-quality asset combined with MAS Gold's
mineral portfolio, which includes the recently updated North Lake and Greywacke North mineral
resources announced December 6, 2021
and December 9, 2021, respectively,
MAS Gold will become one of Saskatchewan's biggest gold developers."
Jim added, "Under the terms of the Proposed Transaction Steven
Goldman, the President and CEO of Comstock will join the MAS Gold.
We look forward to working with him."
Mr. Goldman, President commented, "On behalf of Comstock, I
believe the Proposed Transaction will be highly advantageous and
synergistic for both Comstock's and MAS Gold's shareholders. We are
delighted to have the opportunity to pass Comstock's Preview SW
gold project to MAS Gold where we believe the combination of gold
resources, MAS Gold's experienced management team, and technical
mining talent, will quickly accelerate the creation of a
significant gold deposit in the La Ronge Gold Belt. Ultimately we
believe that the Proposed Transaction will help create significant
shareholder value in the years to come for both Comstock's and MAS
Gold's shareholders."
For the purposes of this News Release and MAS Gold, the 2016
Simpson Technical Report is treated as historical. A Qualified
Person has not done sufficient work to classify the historical
estimate as a current mineral resource and MAS gold is not treating
this historical estimate as current mineral resources.
MAS Gold and Comstock consider the Preview SW historical mineral
resource estimate to be relevant and reliable. The Preview SW
estimate was constrained by 3D wireframes representing zones of
high shear intensity and grade continuity. The drill database
comprised 162 core holes totaling 26,250
m drilled between 1985 and 2013. Drill hole data was
composited on 1 metre intervals and composites were capped at 50
g/t Au. Final gold grades were estimated using the inverse distance
method to the 3rd power (ID3). Bulk density values were assigned to
blocks according to lithology based on specific gravity field
measurements. A block model was created in Gemcom-Surpac Vision©
software using a block size 5 x 5 x 5 metres. Mineral resources
amenable to open pit mining methods were constrained using a
Lerchs-Grossmann optimized pit. Assumptions include US$1,300/oz Au, 90% Au recovery, US$2.50/tonne mining cost, US$15.50/tonne process, and G&A cost.
No allowances have been made for mining losses and dilution. Pit
slope angle of 45°.
The Preview SW estimate was classified using the definitions set
out in CIM Definition Standards for Mineral Resources and Mineral
Reserves (2010), which was superseded by CIM (2014). Similarly, the
Preview SW estimate predates CIM Estimation of Mineral Resources
and Mineral Reserves Best Practice Guidelines (2019). To verify the
historical estimate as a current mineral resource a Qualified
Person would need to prepare an updated mineral resource estimate
and NI 43-101 technical report with respect to the Preview SW
Property that incorporates additional drilling completed since the
since 2013, which includes 24 holes totaling 4,700 metres targeting
the Preview North zone and Preview SW during 2017 and 2018 (7 holes
totalling 1,850 m at the Preview SW).
Qualifying Statements and Mineral Resources
The contained gold ounces are in situ. No assurance can be given
that the estimated quantities will be produced. All figures have
been rounded to reflect accuracy and to comply with securities
regulatory requirements. Summations within the tables may not agree
due to rounding.
Mineral Resources, which are not Mineral Reserves, do not have
demonstrated economic viability. The estimate of Mineral Resources
may be materially affected by gold price, environmental,
permitting, legal, title, taxation, socio-political, marketing or
other relevant issues.
The following Technical Reports are available on SEDAR:
1.
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43-101 Technical
Report, Preview SW Gold Project, La Ronge, Saskatchewan,
prepared for Comstock Metals Ltd. by Ronald G. Simpson, P.Geo.,
Geosim Services Inc. Effective date September 27, 2016.
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2.
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A Technical Report
will be issued within 45 days of MAS Gold's December 09, 2021 news
release about the North Lake Mineral Resource update and will cover
both the North Lake and Greywacke North Mineral Resource updates.
The principal author and QP will be Stephen Godden, C.Eng. FIMMM,
an Independent Mining Consultant; both David Thomas, P. Geo., and
David Tupper, P. Geo., Vice President, Exploration of MAS Gold,
will be co-authors (each being a QP).
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The December 9, 2021
announced North Lake Mineral Resource Estimate updates the March
1, 2020 Technical Report on the 2020 Mineral Resource Estimate,
North Lake Project by S. Godden, D. Thomas and D.
Tupper.
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3.
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A Technical Report
will be issued within 45 days of Mas Gold's December 06, 2021 news
release about the Greywacke North Mineral Resource update. It
will cover both the North Lake and Greywacke North Mineral Resource
updates. The principal author and QP will be Stephen Godden,
C.Eng. FIMMM, an Independent Mining Consultant; both David Thomas,
P. Geo., and David Tupper, P. Geo., Vice President, Exploration of
MAS Gold, will be co-authors (each being a QP). All three QPs
are responsible for the preparation of this news release; they have
read and approved its technical aspects.
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The December 6, 2021
news release announced Greywacke North Mineral Resource Estimate
updates the June 1, 2016, 43-101 Technical Report and Resource
Update, Greywacke Lake Project, Saskatchewan, Canada by F.
Hrdy, E. Puritch, and M. Yakimchuk.
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Completion of the Proposed Transaction is subject to a number of
conditions, including but not limited to, execution of a binding
definitive agreement relating to the Proposed Transaction, TSX
Venture Exchange acceptance and shareholder approval. There can be
no assurance that the Proposed Transaction will be completed as
proposed or at all.
About MAS Gold Corp.
MAS Gold Corp. is a Canadian mineral exploration company focused
on gold exploration projects in the prospective La Ronge Gold Belt
of Saskatchewan. In the belt, MAS
Gold operates four properties including the Preview-North,
Greywacke Lake, Elizabeth Lake and
Henry Lake Properties that extend along segments totaling roughly
60 kilometres of the geologically prospective La Ronge, Kisseynew and Glennie Domains that
make up the La Ronge Gold Belt (see Figure 1).
MAS Gold's holdings include the North
Lake, Greywacke North, Bakos (Contact Lake) and Point gold
deposits and the historically defined Elizabeth Lake copper-gold volcanic-hosted
massive sulphide deposit within four properties totalling 34,703.4
hectares (85,753.8 acres).
The North Lake deposit located
at the Preview-North Property is estimated to contain an Inferred
Mineral Resource of 18,100,000 t grading 0.85 g/t Au, hence 494,000
contained ounces of gold. The Technical Report about the updated
Mineral Resource estimate will be filed in January, 2022 (see MAS
Gold news release dated December 9,
2021).
The Greywacke North deposit, which hosts multiple known
stratabound, high-grade gold-bearing zones, has an updated,
combined openpit and underground Indicated Mineral Resource of
645,000 t averaging 4.90 g/t Au for 101,000 insitu ounces of gold
(600,000 t at 4.89 g/t Au, and 45,000t at 5.03 g/t Au,
respectively), plus a combined openpit and underground Inferred
Mineral Resource of 410,000 t averaging 4.12 g/t Au for 55,000
insitu ounces of gold (35,000 t at 1.97 g/t Au, and 375,000 t at
4.33 g/t Au, respectively). The Indicated and Inferred
Mineral Resources were estimated using openpit and underground
cut-off grades of 0.65 g/t Au and 1.75 g/t Au, respectively. The
Technical Report about the updated Mineral Resource estimate will
be filed in January, 2022 (see MAS Gold news release dated
December 6, 2021).
The Bakos deposit, located on the former Contact Lake Mine
holding, was first identified by Saskatchewan Mining Development
Corporation (SMDC; later Cameco Corporation) exploration field
crews in 1984. Operations were conducted from December 1994 until closure in December
1998. Historical production and recovery values for the entire
operation included 188,185 ounces gold produced from 1,006,673
tonnes processed with a head grade of 6.16 g/t Au at a recovery
rate o 95% (Leniuk, G., B. Bharadwaj, G. Alderman & R.
Wyka: Cameco Corporation Contact Lake Operation, Final
Report, January, 1999). The mine was shut down during low
metals prices, reportedly leaving undeveloped material in
place.(see MAS Gold news release dated September 13, 2021).
The Point deposit has been the subject of multiple drill
campaigns dating to the 1980's when Saskatchewan Mining and
Development Corporation (SMDC; later Cameco) drilled 43 core holes.
MAS gold completed 13 additional holes in 2019, intersecting
multiple high-grade intercepts including 7.0 metres grading 14.99
g/t Au from 20.0 to 27.0 metres (see MAS Gold news release dated
June 25, 2019).
About Comstock Metals Ltd.
Comstock Metals has been advancing the Preview SW Gold Project,
a resource-stage gold project in the La
Ronge district of Saskatchewan (see Figure 1). The Preview SW
deposit hosts an Indicated Mineral Resource containing 158,300
ounces of gold (2.61 million tonnes grading 1.89 g/t Au) and an
Inferred Mineral Resource containing 270,800 ounces of gold (5.70
million tonnes grading 1.48 g/t Au), both based on a 0.50 g/t Au
cut-off grade. During 2017 and 2018, Comstock completed diamond
drilling campaigns targeting the Preview North zone and the Preview
SW deposit comprising 24 holes totaling 4,700 metres. Several
additional, relatively untested targets remain on the Property,
including the A, B, C, and Clearwater zones (see Figure 2).
Comstock has filed on SEDAR the 43-101 Technical Report, Preview
SW Gold Project, La Ronge,
Saskatchewan, prepared for Comstock Metals Ltd. by
Ronald G. Simpson, P.Geo., Geosim
Services Inc. Effective date September
27, 2016.
Red Cloud Securities Inc. is acting as financial advisor to
Comstock with Fogler, Rubinoff LLP acting as legal advisor.
Qualified Persons
The scientific and technical information contained in this news
release has been prepared, reviewed and approved by David Tupper, P.Geo. (British Columbia), MAS Gold's VP Exploration
and Kristopher J. Raffle, P. Geo.(British
Columbia) Principal and Consultant of APEX Geoscience Ltd.
of Edmonton, AB, on behalf of
Comstock Metals, both Qualified Persons (QP) within the context of
Canadian Securities Administrators' National Instrument 43-101;
Standards of Disclosure for Mineral Projects (NI 43-101).
MAS Gold Corp.
Jim
Engdahl
Director & CEO
Suite 420 - 789 West Pender Street
Vancouver, British Columbia,
Canada, V6C 1H2
t:
604-685-8592
www.masgoldcorp.com
For further information about Comstock Metals Ltd. visit
www.comstock-metals.com.
Caution Regarding Forward Looking Information and
Statements
Information set forth in this news release contains
forward-looking statements that are based on assumptions as of the
date of this news release. These statements reflect management's
current estimates, beliefs, intentions and expectations. They are
not guarantees of future performance. MAS Gold and Comstock caution
that all forward-looking statements are inherently uncertain and
that actual performance may be affected by a number of material
factors, many of which are beyond their respective control. Such
factors include, among other things: the failure to satisfy the
conditions to completion of the Proposed Transaction set forth
above, risks and uncertainties relating to MAS Gold's limited
operating history, the need to comply with environmental and
governmental regulations, results of exploration programs on their
projects and those risks and uncertainties identified in each of
their annual and interim financial statements and management
discussion and analysis. Accordingly, actual and future events,
conditions and results may differ materially from the estimates,
beliefs, intentions and expectations expressed or implied in the
forward-looking information.
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 Mas Gold and Comstock. As a result, Mas Gold
and Comstock cannot guarantee that the Proposed Transaction will be
completed on the terms and within the time disclosed herein or at
all. 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 Mas Gold and Comstock will
only update or revise publicly any of the included forward-looking
statements as expressly required by Canadian securities law. Except
as required under applicable securities legislation, MAS Gold
undertakes no obligation to publicly update or revise
forward-looking information.
Neither 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.
SOURCE MAS Gold Corp