McLaren Resources Acquires the Remaining 50% Interest in Past-Producing Blue Quartz Gold Mine Property, Timmins Gold District, Ontario
Toronto, October 26, 2020 - McLaren Resources Inc. (CSE: MCL) (FSE:3ML) ("McLaren" or the "Company") announces that it has acquired from its joint venture partner, Orla Mining Ltd. ("Orla"), the remaining 50% interest, to hold a 100% interest, in the past-producing Blue Quartz Gold Mine property which is located in the prolific Timmins Gold District of Northeastern Ontario.
Consideration for the acquisition was 300,000 treasury shares of McLaren which cannot be traded on the open market by Orla prior to October 15, 2021.
The Blue Quartz property is located in the Abitibi Greenstone Belt in the north-central part of Beatty Township approximately 73 kilometres (km) east of the city of Timmins. The property is located in a historic gold producing area and sits 8 km north of the producing Black Fox Gold Mine operated by McEwen Mining Inc., 12 km northeast of the past-producing Hislop Mine owned by Kirkland Lake Gold and 14 km northeast of the former producing Ross Mine. In addition, McLaren's McCool gold property, which was recently acquired from Newmont Corporation ("Newmont") (see news release dated May 14, 2020), lies 22 km east of the Blue Quartz property and McLaren's Kerrs property, also recently acquired from Newmont, lies 21.5 km east-northeast of the Blue Quartz property.
The Blue Quartz property is comprised of 25 Patented Mining Claims covering 400 hectares ("ha") and 8 adjoining Crown Mining Claims covering a further 240 ha. The large property straddles both the Pipestone Fault as well as a subsidiary, sub-parallel fault, the Painkiller Lake Fault, both of which exhibit strong silicification and are key gold-bearing structures in the area.
The Blue Quartz property is reported to have produced gold from high grade veins during the 1920s and 1930s. Underground mining operations were undertaken from a 160 metre deep shaft sunk on the Pipestone Fault. Underground work included 1,830 metres of crosscutting and drifting, over half of which was on the 150 metre level, and with lateral workings to a depth of 225 metres.
Two diamond drilling programs undertaken in 2011 and 2012 by McLaren and Orla (formerly Red Mile Minerals Ltd.), consisting of 3,693 m of diamond drilling in 16 holes, intersected significant high grade gold mineralization along with substantial widths of lower grade gold mineralization and wide zones of hydrothermal alteration at depth below and to the west of the old Blue Quartz Gold Mine workings as well as below the majority of the drilling completed on the property to date.
Selected gold intersections from this drilling include:
5.28 grams per tonne gold ("gpt Au") over 2.8 m in hole RBQ-10-01;
3.52 gpt Au over 8.4 m, including 23.00 gpt over 1.0 m in hole RGB-10-02;
2.20 gpt Au over 6.1 m, including 57.00 gpt Au over 0.2 m in hole RBQ-10-03;
8.71 gpt Au over 1.3 m in hole RBQ-08-02;
13.30 gpt Au over 1.0 m in hole MBG-11-07;
13.95 gpt Au over 2.0 m and 1.34 gpt Au over 7.0 m and 2.95 gpt Au over 3.7 m,
including 7.26 gpt Au over 1.2 m in hole MBQ-11-09;
5.51 gpt Au over 3.1 m and 1.21 gpt Au over 63.0 m, including 5.56 gpt Au over 4.0 m
and 12.80 gpt Au over 1.5 m in hole MBQ-11-10.
(see news releases posted on SEDAR dated April 21, 2011 and February 28, 2013 or visit McLaren's website at www.mclarenresources.com for further information).
Significant gold mineralization has been intersected to date on the Blue Quartz Gold Mine property and the mineralization is open to depth and down plunge with indications that the hydrothermal alteration system is increasing in intensity along with both the grade and width of the gold mineralization. Additional drilling is warranted in the future on this property in order to further trace the known gold-bearing structures to depth and to the west in the area of the historical Blue Quartz Mine Shaft.
Qualified Person
The information presented in this news release has been reviewed and approved by Kenneth Guy, P.Geo, a consultant to McLaren and the Qualified Person for McLaren, as defined by National Instrument 43-101 "Standards of Disclosure for Mineral Projects".
About McLaren
McLaren has been focussed on exploration work on its gold properties in the Timmins Gold District of Northeastern Ontario. McLaren now owns a 100% interest in the past-producing, 640 ha, Blue Quartz Gold Mine property as well as the 275 ha McCool and 775 ha Kerrs gold properties (McCool and Kerrs properties recently acquired from Newmont - see news release dated May 14, 2020), all located within the Abitibi Greenstone Belt along the Destor-Porcupine Deformation Zone which is host to many of the gold deposits in the area approximately 73 km east of Timmins. McLaren also has the right to earn a 50% interest in the 238 ha TimGinn gold property which hosts the former producing Gilles Lake Gold Mine in Tisdale Township in Central Timmins and lies adjacent to the Hollinger Gold Mine and McIntyre Gold Mine both owned by Newmont. McLaren also owns a 100% interest in the 408 ha Augdome gold property which is located in Tisdale and Whitney Townships immediately east of the Dome Mine owned by Newmont. The Augdome property is currently under a four-year option to Newmont.
Additional Information
For more information, please contact: Radovan Danilovsky, President, Phone: 416-203-6784, www.mclarenresources.com
McLaren Resources Inc.
44 Victoria Street, Suite 1616
Toronto, Ontario M5C 1Y2
The Canadian Securities Exchange has neither approved nor disapproved the contents of the press release. The Canadian Securities Exchange does not accept responsibility for the adequacy or accuracy of this release.
We seek safe harbour.
This news release contains forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 and forward-looking information within the meaning of the Securities Act (Ontario) (together, "forward-looking statements"). Such forward-looking statements may include the Company's plans for its properties, the overall economic potential of its properties, the availability of adequate financing and involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements expressed or implied by such forward- looking statements to be materially different. Such factors include, among others, risks and uncertainties relating to potential political risk, uncertainty of production and capital costs estimates and the potential for unexpected costs and expenses, physical risks inherent in mining operations, metallurgical risk, currency fluctuations, fluctuations in the price of nickel, cobalt, copper and other metals, completion of economic evaluations, changes in project parameters as plans continue to be refined, the inability or failure to obtain adequate financing on a timely basis, and other risks and uncertainties, including those described in the Company's Management Discussion and Analysis for the most recent financial period and Material Change Reports filed with the Canadian Securities Administrators and available at www.sedar.com.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/66859