QcX Gold Acquires 2nd Property in Fenelon Near Detour Lake Mining Camp, Quebec
Toronto, Ontario--(Newsfile Corp. - August 13, 2020) - QcX Gold Corp. (TSXV: QCX) (OTC: FMGXF) (FSE: 21MA) ("QcX" or the "Company") is pleased to announce it has acquired a 100% interest in the Fernet East property ("Fernet East"), located in northwestern Quebec (the "Acquisition"). Fernet East comprises the second property as part of the overall Fernet project (the "Fernet Project") as shown in Figure 1. Fernet East adds approximately 2,715 hectares to the Fernet Project, bringing the total land position to approximately 7,195 hectares. Fernet East is contiguous with claims held by Midland Exploration Inc. and near Wallbridge Mining Limited's Fenelon gold project as shown in Figure 1.
Figure 1: Location of the Fernet Project (red) with respect to neighbouring companies
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Fernet East is approximately 45 km southeast of the Fenelon gold project (bulk sample of 33,233 tonnes at 18.49 g/t Au - Wallbridge news May 15, 2019), and 110 km east of Detour Lake mine (~15.4 Moz mineral reserves including proven mineral reserves of 3.4 million ounces (85.2 million tonnes at an average grade of 1.24 grams per tonne) and probable mineral reserves of 12.1 million ounces (413.2 million tonnes at an average grade of 0.91 grams per tonne) as of December 31, 2018 - Detour Gold news March 7, 2019)). Fernet East is underlain by Archean greenstone volcanic rocks and intrusions to the north of the eastward extension of the Sunday Lake Deformation Zone. Of particular interest is the structure and associated gold deposits and occurrences of the Manthet Group which underlay both the Fernet East and the neighbouring Fenelon, Martinière, and Lac du Doigt gold discoveries as shown in Figure 2. Mineralization hosted on adjacent and/or nearby properties is not necessarily indicative of mineralization hosted on the Fernet Project.
Figure 2: Geology of the Fernet Project (red) with respect to regional geology and mineral occurrences
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Albert Contardi, Interim Chief Executive Officer of QcX, stated, "The Fernet East property was a great fit for our project portfolio as we continue to expand our presence in Quebec with the previously announced acquisitions of the Golden Giant in James Bay proximal to Azimut Exploration Inc. and the Fernet West proximal to Wallbridge Mining Limited. We are excited to begin a work program on the Fernet Project in a rapidly emerging mining camp. We look forward to updating the market on the fully funded work program."
The Acquisition will be carried out in accordance with the terms of a mining claim acquisition agreement (the "Purchase Agreement") dated August 10, 2020, between the Company and an arm's length vendor who holds a 100% interest in the mineral claims comprising Fernet East (the "Vendor"), pursuant to which the Company will acquire a 100% interest in the Fernet Project, in consideration of: (i) the Company will pay the sum of $68,000 to the Vendor over a period of three (3) years from the date on which QcX receives approval from the TSX Venture Exchange ("TSXV") in respect of the Acquisition; (ii) issue to the Vendor an aggregate of 300,000 common shares in the capital of the Company, to be issued in several tranches; and (ii) grant to the Vendor a 1.5% net smelter returns royalty ("NSR") (subject to the right and option of the Company to purchase 0.75% of the NSR for a price equal to $500,000). The completion of the Acquisition remains subject to the approval of the TSXV.
For further information, please contact:
Interim Chief Executive Officer
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 release.
This news release contains forward-looking statements. All statements, other than of historical facts, that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future including, without limitation, the planned exploration program, the expected positive exploration results, the timing of the exploration results, the ability of the Company to continue with the exploration program, the availability of the required funds to continue with the exploration and the potential mineralization or potential mineral resources are forward-looking statements. Forward-looking statements are generally identifiable by use of the words "will", "should", "continue", "expect", "anticipate", "estimate", "believe", "intend", "to earn", "to have', "plan" or "project" or the negative of these words or other variations on these words or comparable terminology. Forward-looking statements are subject to a number of risks and uncertainties, many of which are beyond the Company's ability to control or predict, that may cause the actual results of the Company to differ materially from those discussed in the forward-looking statements. Factors that could cause actual results or events to differ materially from current expectations include, among other things, failure to meet expected, estimated or planned exploration expenditures, failure to establish estimated mineral resources, the possibility that future exploration results will not be consistent with the Company's expectations, general business and economic conditions, changes in world gold markets, sufficient labour and equipment being available, changes in laws and permitting requirements, unanticipated weather changes, title disputes and claims, environmental risks as well as those risks identified in the Company's annual Management's Discussion and Analysis. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results may vary materially from those described and accordingly, readers should not place undue reliance on forward-looking statements. Although the Company has attempted to identify important risks, uncertainties and factors which could cause actual results to differ materially, there may be others that cause results not to be as anticipated, estimated or intended. The Company does not intend, and does not assume any obligation, to update these forward-looking statements except as otherwise required by applicable law.
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