Provenance Issues Update on Newly Recognized Yukon Gold System and Announces a Private Placement Offering
Vancouver, British Columbia--(Newsfile Corp. - November 23, 2017) - Provenance Gold Corp. (CSE:PAU) ("Provenance", or the "Company") is pleased to announce it has initiated exploration on a potentially large newly recognized gold system located 130 km SSW of Dawson City, and west of the White Gold and Coffee discoveries. Provenance holds an option to acquire a 100% interest on 192 quartz claims comprising the "2K Property", covering 3,705 contiguous hectares (9,156 acres) within the Moosehorn Range in the western Yukon portion of the Tintina Gold Belt. The area is marked by a lineation comprised of NE-SW-trending faults and shear zones extending at least six kilometers across the Ridge. This gold system is interpreted by Provenance as the source of rich placer deposits in three adjacent drainages: Kenyon Creek, Great Bear Creek and Kate Creek, that have been continuously mined for more than thirty years, and continue to yield significant amounts of gold today.
Lode gold was initially discovered in the Moosehorn Range in the early 1970s, followed by limited, localized exploration on three of the original discovery locations. Provenance recognized that much, if not most, of the placer gold originated from sources other than the early discoveries, and is developing a geological framework for the overall gold system. Provenance has been encouraged by the work to date, which suggests that an extensive gold system exists on the property, and that the earlier discoveries represent small exposures of a much larger system.
2016 Work Program
After acquiring the option on the property in 2016, Provenance conducted a limited surface exploration program returning high gold assay values from rock sampling in previously unexplored portions of the property. Assays from these new locations ran as high as 803 grams per tonne (g/t) gold from a grab sample, and 122.5 g/t gold across 1.8 meters of continuous chip sampling. The 2016 field work was focused on a large area of oxidation and decrepitation of host Dawson Range Batholith granodiorite underlying the headwaters of Kenyon Creek exposed by historic placer operations. The program identified areas of quartz vein and stringer zones that are distinct from the larger mesothermal quartz veins discovered in earlier programs. Initial geological reconnaissance of the Kenyon Creek area identified zones of structural preparation, marked by mafic dike swarms, extensive alteration, and areas of abundant quartz stringers, within an aerially extensive area of decrepitation of the host granodiorite. The 2016 work culminated in the completion of an independent National Instrument 43-101 technical report that classified the mineralizing system as an orogenic gold setting, and confirmed that the 2K property is a property of merit for further exploration.
2017 Work Program
The 2017 program consisted of two phases: a preliminary soil and rock geochemical survey, including preliminary geological mapping, followed by a diamond drilling program that followed up on results from the 2016 and earlier 2017 surface work. It was designed to gain a better understanding of the gold system, focusing on the Kenyon Creek headwaters and a prospective area of Great Bear Creek.
2017 Soil Sampling: The 2017 soil geochemical program covered part of the Kenyon Creek headwaters and parts of the Kate Creek and Great Bear Creek watersheds. The program identified areas of anomalous gold and "pathfinder" elements scattered across the property. Among the highlights is an open-ended area of moderately to strongly anomalous arsenic values from tightly spaced sampling within a grid centered on several large tabular boulders of gold-bearing mesothermal quartz veins excavated during access road construction in the upper Kate Creek catchment area. This anomaly is located near the intersection of a large north-south trending structural zone identified from government airborne surveying, and an interpreted NE-SW trending lineament.
2017 Drilling: The second phase consisted of a diamond drilling program of 1,836 metres in 13 holes. The drilling focused on the Kenyon Creek headwaters area, and on a potential lode gold source area of the Great Bear Creek placer operations. Assay results are pending. The program improved Provenance's understanding of the property-wide gold system and its geological framework, which will influence planning of the company's 2018 exploration program.
Provenance believes the property has potential to host a bulk-tonnage gold deposit. The work to date has identified new areas of gold mineralization, and begun to outline the structural setting and potential size of the gold system. Provenance is looking forward to the 2018 program, which it anticipates will delineate known portions of the gold system and develop a more detailed geological model for the property.
Private Placement Offering
Provenance is also pleased to announce that the Company will complete a non-brokered private placement of up to 1,600,000 units (each, a "Unit") at a price of $0.25 per Unit for aggregate gross proceeds of up to $400,000.00. Each Unit will consist of one common share of the Company, and one-half-of-one common share purchase Warrant (each full warrant, a "Warrant"). Each Warrant entitles the holder to acquire an additional common share at a price of $0.40 per share for a period of twenty-four-months. The Company may pay finder's fees as permitted by applicable securities laws and the policies of the Canadian Securities Exchange. The securities will be subject to a four-month-and-one-day statutory hold period from the date of issuance. Closing of the private placement remains subject to the receipt of all regulatory approvals, including the approval of the Canadian Securities Exchange.
The Company intends to use the proceeds of the private placement towards exploration and development expenditures as well as for general working capital requirements.
Carl Schulze, PGeo with the Association of Professional Engineers and Geoscientists of British Columbia (APEGBC) and Project Manager with Aurora Geosciences Ltd. of Whitehorse, Yukon, and a Qualified Person (as defined by National Instrument 43-101) for the 2K Project, has reviewed and approved the contents of this News Release. All 2017 work was supervised by Aurora Geosciences Ltd.
On behalf of the Board,
Provenance Gold Corp.
Rauno Perttu, Chief Executive Officer
Neither the CSE, nor its regulation services provider, accepts responsibility for the adequacy or accuracy of this press release.
Statements included in this announcement, including statements concerning our plans, intentions and expectations, which are not historical in nature are intended to be, and are hereby identified as "forward-looking statements". Forward-looking statements may be identified by words including "anticipates", "believes", "intends", "estimates", "expects" and similar expressions. The Company cautions readers that forward-looking statements, including without limitation those relating to the Company's future operations and business prospects, are subject to certain risks and uncertainties that could cause actual results to differ materially from those indicated in the forward-looking statements.