Frontline Gold Corp. to Option 100% of its Red Lake Property Group
Toronto, May 17, 2017 - Frontline Gold Corp. (TSXV: FGC) ("Frontline" or the "Company") announces it has executed an Option Agreement with Pacton Gold Inc. ("Pacton", TSXV: PAC) wherein, Pacton has the option to acquire a 100% percent interest in the Company's Red Lake Property Group, in the Red Lake District, by making certain payments and share issuances to Frontline. Frontline's Red Lake Property Group retains a 2.25% net smelter returns royalty, with Frontline's net smelter returns royalty ranging from 0.25% to 2.25% on all the mineral claims and mineral patents. Pacton can purchase one-half (1/2) of Frontline's royalty by payment of $250,000 for each 0.25% of Frontline's Royalty. The acquisition of the Red Lake Property Group by Pacton is subject to approval by the TSX Venture Exchange.
The prolific Red Lake Gold District, Northwestern Ontario contains some of the richest gold deposits in the world and has produced over 25 million ounces of gold from high grade zones, including 1.3 million ounces of gold produced by GoldCorp in the district at a grade of 19.5 g/t from 2013 to 2015 (source: Goldcorp's production in Red Lake - per public disclosure).
Frontline's Red Lake Property Group
The Red Lake Property Group comprises 34 mineral claims and 2 mineral patents, totaling 274 claims units for a total area of approximately 4,420 hectares. The Red Lake Property Group primarily consists of 3 properties: 1) Baird/Heyson mineral claims ("Baird/Heyson Property"), 2) the Chukuni package, and 3) the Whitehorse Island Patents ("Whitehorse Property"):
Baird/Heyson Property
The Baird/Heyson Property, which consists of 15 mineral claims, totalling 141 claim units, totalling 2,256 hectares, is primary located, along the south and southeast boundaries of Pure Gold Mining Inc.'s ("Pure Gold") 100% owned Madsen Gold Project in the Red Lake Gold District, Ontario.
The Baird/Heyson is principally hosted within Confederation Assemblage rocks, immediately south of the Balmer - Confederation unconformity, in the western portion of the Red Lake Greenstone Belt. There are three main exploration targets of interest on the property: the westward extension of the prolific Madsen Mine Trend, the New Faulkenham Mine Structure Trend, and the base-metal massive sulphide VMS Zone.
Public work assessment records indicate that a number of companies have explored portions of the South Baird Property dating back to the 1940's. Prior work assessments have confirmed the presence of potentially significant gold, silver and copper mineralization associated within favourable geological settings.
2003-2006: Solitaire Minerals - United Bolero Development Corp. completed 10 drill holes totaling 1,093 metres tested the Faulkenham Mine trend (8 holes) and the VMS copper target (2 holes) previously intersected by the 1976 Selco drilling. SB-06-03, the northern-most hole into the Faulkenham Mine trend, intersected 6 metres of 0.3 grams gold at 43 metres depth and 2.5 metres of 0.5 grams gold at 80.5 metres depth. SB-06-09 and -10 targeted the Selco VMS target. SB-06-09 intersected 10.32 metres of 0.3% copper and 0.3 grams gold (including 1.4% copper and 1.4 grams gold over 1.52 metres) at a depth of 36 metres. SB-06-10 intersected 1.5 metres of 0.4% copper and 0.3 grams gold at a depth of 78.7 metres.
Chukuni Property
Consists of 12 mineral claims, totalling 114 claim units, totalling 1,824 hectares, and lies immediately south of and adjoins the Goldcorp Red Lake Mine property. Previous exploration in the Red Lake area disclosed high grade gold mineralization and, in 1995, a rich gold deposit that was not supposed to exist, was discovered in the area now being mined by Goldcorp.
Further recommended work on the Chukuni property should involve a close examination of the recent Red Lake Camp developments and also expanding the area of historical focus away from the old showings, while noting that the previous work has at least tapped into a gold-mineralized system. (Source: Report on the 2006 Diamond Drill Program, Chukuni Property, Solitaire Minerals Corporation, January 2007, J. Garry Clarke, P.Geo.)
Whitehorse Property
The Whitehorse Property comprised of two contiguous claims, totalling 35.55 hectares hosts the Whitehorse Island gold shaft and are situated southwest of and contiguous with the Goldcorp Inc. ("Goldcorp")/Premier Gold ("Premier") JV Rahill-Bonanza property, and northeast of Premier's 100% owned Hasaga property.
The Whitehorse Property has seen considerable past exploration and is host to the historic Orlac Deposit, located on and northeast of Whitehorse Island on the Property, southwest of Rahill-Bonanza has been explored and drilled since 1937 by a variety of operators, and has an historic estimated resource of 300,000 tons @ 0.08 oz/t (Noramco, 1988) and 175,000 tons @ 0.20 oz/ton Au (Cable Mines & Oils Ltd, 1948) over an area approximately 160 metres long, 3-5 metres wide, and 125 metres deep. Historic assays include intersections like 4.53 g/t Au over 26 metres and 4.70 g/t Au over 17.2 metres (Pure Gold Resources 1987-88), and 3.32 g/t Au over 28.4 metres, and 4.7 g/t Au over 17.2 metres (Noramco, 1988).
Terms of the Option Agreement
Pacton will have the option to acquire a 100 percent interest in the Red Lake Property Group from Frontline by making four (4) cash payments totaling $300,000, and issuing a total of 4,200,000 common shares to Frontline over a three (3) year period. Frontline's Red Lake Property Group retains a 2.25% net smelter returns royalty, with Frontline's net smelter returns royalty ranging from 0.25% to 2.25% on all the mineral claims and mineral patents. Pacton can purchase one-half (1/2) of Frontline's royalty by payment of $250,000 for each 0.25% of Frontline's Royalty.
Frontline is a Canadian junior mineral exploration company. The Company's principal Ontario properties include the following:
-Red Lake Gold exploration properties consisting of 16 claims, totaling 6,400 acres on 160 claim units adjoining Pure Gold's Madsen Mine to the east and the south. This land package combined with the Company's Chukuni and White Horse Island Projects, provides the Company with one of the largest exploration land packages within the Red Lake District totaling just over 9,600 acres.
-The Chukuni property which consists of seven contiguous claims, totaling 2,960 acres on 74 claim units in proximity to Goldcorp's Red Lake Gold Mine, and the proximity to Goldcorp's #3 Mine shaft.
-Whitehorse Island property comprised of two contiguous claims, totalling 35.55 hectares hosts the Whitehorse Island gold shaft and are situated between the Goldcorp / Premier Gold Rahill-Bonanza Gold Property and Premier Gold's Hasaga Gold Property.
-Cameron Lake Property Group consists of a 100% interest in seven gold properties in the Rainy River area of Ontario ("Rainy River Properties") which are strategically located adjacent to First Mining Finance's Cameron Gold Project ("Cameron Gold Project") in the Rainy River area.
-Zealand Properties consist of a total of 72 claim units covering 1,152 hectares. All of the claims are located on or near the project boundaries to Treasury Metals' ("Treasury Metals") Goliath Gold Project.
-Confederation Lake Project the Property property hosts a number of historical Cu-Zn bearing massive sulphide and stringer sulphide mineralized zones, hosted in strongly altered felsic volcanic pyroclastic rocks.
-Birch-Uchi Greenstone Belt exploration property, which is adjacent to Sabina Gold and Silver's Golden Sidewalk property, hosts the past-producing Bathurst Mine;
-Production Royalty and Net Smelter Royalty on a portion of First Mining Finance's Pickle Crow Gold Project which was acquired from PC Gold Inc.
In addition to the Ontario Exploration portfolio discussed above, the Company's international principal properties include the following:
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i.Keban Tailings Project- Located approximately 45 km northwest from the city of Elazig, Elazig Province of Turkey in the Central East Anatolia region, via paved highway, which is fully permitted and includes the exclusive rights to process a minimum 114,000 tonnes of mineralized milled tailings stored in two areas within the defined tailings boundaries.
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ii.Kambertepe Tailings Project- Located about 100 km east from the city of Elazig, Turkey Includes the exclusive rights to process approximately up to 6,000 tonnes of mineralized tailings, with the following average reported grades per tonne of tailings: 2.1% Copper, 21 g/t Silver, 1.9% Zinc, 0.5% Titanium and over 50% Iron, based on assays completed by Bureau Veritas, Vancouver, Canada, as noted from a Firat University report on the project dated March 15th, 2016.
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iii.Menderes Gold Project- A 6,194 ha (62 km?) contiguous land package located near the village of Efemcukuru, in Izmir Province, Western Turkey. The permits that make up the Menderes Gold Project were acquired for their excellent potential to host low to medium sulphidation, gold-mineralized epithermal vein systems. The Menderes Gold Project is contiguous to the eastern and southern property boundaries of Eldorado Gold's Efencukuru Mine (sourcewww.eldoradogold.com).
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iv.Niaouleni Gold Project- In southern Mali in the heart of West Africa's prolific gold belt. Active gold exploration projects in the immediate vicinity of Niaouleni include African Gold Group Inc.'s Kobada Gold Project (www.africangoldgroup.com).
Further information about the Company is available on the Company's website, www.frontlinegold.com , or our social media sites listed below:
Facebook: https://www.facebook.com/Frontline Gold Corp./
Twitter: https://twitter.com/frontlinegold
This news release contains forward-looking statements, which address future events and conditions, which are subject to various risks and uncertainties. The Company's actual results, programs and financial position could differ materially from those anticipated in such forward-looking statements as a result of numerous factors, some of which may be beyond the Company's control. These factors include: the availability of funds; the timing and content of work programs; results of exploration activities and development of mineral properties; the interpretation of drilling results and other geological data; the uncertainties of resource and reserve estimations; receipt and security of mineral property titles; project cost overruns or unanticipated costs and expenses; fluctuations in metal prices; currency fluctuations; and general market and industry conditions.
Forward-looking statements are based on the expectations and opinions of the Company's management on the date the statements are made. The assumptions used in the preparation of such statements, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements.
| "Walter Henry" | Contact: Walter Henry Telephone: (416) 414-5825 Fax: (416) 363-6872 Email: info@frontlinegold.com Website: www.frontlinegold.com Frontline Gold Corp. (TSX-V: FGC) 1 Toronto Street, Suite 201 Toronto, Ontario M5C 2V6 | |
| Walter Henry, President & CEO |
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