White Metal Initiates Drilling Program on its Tower Stock Gold Project, Ontario and Announces Non-Brokered Private Placement
Thunder Bay, Ontario--(Newsfile Corp. - January 18, 2021) - White Metal Resources Corp. (TSXV: WHM) ("White Metal" or the "Company") is pleased to announce that it has received the required drilling permits and will commence the first round of diamond drilling on the Tower Stock Gold Property (the "Property" or the "Project" or "TSGP"). White Metal recently optioned the Tower Stock Gold Property which is located about 40 km west-northwest of the port city of Thunder Bay, Ontario, and consists of 52 claims (73 units) and 3 freehold land grants or patented claims covering an area of 1 442 ha (see Company news release dated June 20, 2020).
Commented Michael Stares, President & CEO of White Metal, "Now that the Company has completed its first phase of exploration that included compilation of all historical work, prospecting and sampling, and targeting, I am very confident that our first round of drilling will prove successful. I look forward to updating our shareholders on our results as the drilling program progresses."
Mineralization discovered to date on the Tower Stock Gold Property is classified as syenite-associated disseminated gold deposit-type similar to that of the Kirkland Lake or Malartic gold camps. More specifically, mineralization and alteration styles on the Property are similar to those found at Alamos Gold's Young-Davidson Mine, which is currently one of Canada's largest underground gold mines, forecast to produce between 135,000 to 145,000 ounces of gold for 2020 (reported by Alamos Gold). Mineralization hosted by established operations and other exploration projects is not necessarily indicative of mineralization hosted on the Company's Property.
Pyrite is the main sulphide mineral and is generally an indication of anomalous levels of gold. Pyrite typically occurs as disseminations in volcanic flows, tuffs and breccia's, polymictic conglomerate, feldspar porphyry, syenite and hydrothermal breccia's commonly developed along the west contact with the syenite of the Tower Mountain Intrusive Complex ("TMIC").
Historical work has delineated two main areas of gold mineralization which contain historical mineral resources; the UV and Bench zones. In addition to these two zones, numerous targets/showings at variable distances (>100 m to >1 km) from these two main areas, as defined by drill intercepts and surface sampling, show the Property to have exceptional exploration potential. Previous drilling programs targeting gold mineralization and undertaken throughout the Property, show that mineralization remains open, either along strike and/or down dip, including numerous drill holes shut down in target gold mineralization. Additionally, a number of zones that have not been drill tested, returned significant gold mineralization from trenching and surface sampling.
The initial exploration focus of the drilling program at the TSGP will be to test and/or expand known gold mineralization from previous drilling and to test highly anomalous gold surface showings, in conjunction with a detailed assessment and subsequent interpretation of all historical work plus geophysics by the WHM exploration team to further our understanding on controls of the widespread gold mineralization that occurs throughout the Property.
A summary of the main gold targets for the initial 2021 drilling program are as follows:
The UV Zone occurs on the west side and adjacent to the TMIC, with gold mineralization hosted in brecciated fragmental volcanic rocks and to a lesser extent syenite dykes and feldspar porphyry, with an overall pyrite content of 3 to 5%. Mineralization is open to the northwest and southeast, with regional airborne geophysical surveys and more recently ground 'checkerboard' magnetic surveys also indicating extensions of this zone.
The Bench Zone lies 800 m southeast of the UV Zone. Gold mineralization is hosted within lithologies and associated pyrite content similar to the UV Zone but with syenite becoming more significant. Numerous drill holes ended in gold mineralization indicating that the gold zones are still open at depth. A thorough review of data from previous drilling programs shows the potential of the Bench Zone and that it is open to the north and south.
Located between the UV and Bench zones, this area is ~800 m along strike has only been tested by two widely spaced (250 m) diamond drill holes, both intersecting significant gold mineralization. Surface sampling of rare outcrop exposure completed in 2020 returned numerous assays of >0.5 g/t Au. This would suggest that the area between the UV and Bench zones is highly prospective, with the possibly that the two zones may be one continuous gold mineralized zone.
04-36 Zone / A Zone / D Zone
These three widely spaced separate zones, lie along a similar northwest trend that underlies the UV-Bench zones, occurring roughly 400 m to the southwest, representing a mostly untested strike length of >1 km. Also encouraging is that mineralization at all three zones is hosted mostly within polymictic conglomerate. Drilling will focus on extending the individual zones and to further understand controls on mineralization to enable accurate drill targeting between the zones.
The H Zone occurs wholly within the TMIC where historical grab samples assayed up to 5 g/t Au. Recent grab samples by WHM personnel has delineated this zone for >100 m, but a true assessment of this showing at this time is difficult due to extensive overburden. One historical hole stopped before truly testing the zone.
A detailed review of the Property in late 2020 clearly shows the exceptional prospectivity of the area due to:
- widespread gold endowment
- numerous targets open along strike and/or down dip
- numerous holes ended in mineralization
- untested surface showings
- overall vertical depth mostly only tested to less than 200 metres
- highly advantageous location - 10 km from the TransCanada Highway with year-round road access
Note that rock grab samples are selective by nature and values reported may not represent the true grade or style of mineralization across the property. A Qualified Person has not done sufficient work to verify the historical assay results reported by previous operators.
The Company would also like to announce that, subject to all regulatory approvals, it intends to complete a non-brokered private placement of flow-through and non flow-through units (the "Private Placement"). The Private Placement is expected to close on or before January 31, 2021.
On receipt of all regulatory approvals, the Company intends to issue up to 3,846,153 flow-through units at a price of $0.13 per flow-through unit, each consisting of 1 flow-through common share of the Company and one common share purchase warrant, with each warrant entitling the holder to acquire an additional common share of the Company at $0.20 for a period of 24 months from the date of issue, and up to 16,666,667 non flow-through units at a price of $0.09 per unit each consisting of 1 common share of the Company and 1 common share purchase warrant, with each warrant entitling the holder to acquire an addition common share of the Company at $0.20 for 24 months from the date of issue, for aggregate gross proceeds of up to $2 million. The flow-through shares will entitle the holder to receive the tax benefits applicable to flow-through shares, in accordance with provisions of the Income Tax Act (Canada).
In connection with the private placement, the Company may pay finders' fees in cash or securities or a combination of both, as permitted by the policies of the TSX Venture Exchange. All securities issued pursuant to the private placement will be subject to a four-month hold period.
The proceeds of the financing will be used to advance the Company's Tower Stock Gold Property and for working capital purposes.
Technical information in this news release has been reviewed and approved by Dr. Scott Jobin-Bevans (P.Geo.), Vice President Exploration and a Director of White Metal, who is a Qualified Person under the definitions established by the National Instrument 43-101.
About White Metal Resources Corp (TSXV: WHM):
White Metal Resources Corp. is a junior exploration company exploring in Canada. For more information in regards to White Metal Resources Corp. you can visit the company's Web Page at www.whitemetalres.com.
On behalf of the Board of Directors of White Metal Resources Corp.
President & CEO, Director
For further information contact:
President & CEO, Director
684 Squier Street
Thunder Bay, Ontario, Canada, P7B 4A8
Phone: (807) 358-2420
THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
The information contained herein contains "forward-looking statements" within the meaning of applicable securities legislation. Forward-looking statements relate to information that is based on assumptions of management, forecasts of future results, and estimates of amounts not yet determinable. Any statements that express predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance are not statements of historical fact and may be "forward-looking statements."
Forward-looking statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking statements, including, without limitation: risks related to failure to obtain adequate financing on a timely basis and on acceptable terms; risks related to the outcome of legal proceedings; political and regulatory risks associated with mining and exploration; risks related to the maintenance of stock exchange listings; risks related to environmental regulation and liability; the potential for delays in exploration or development activities or the completion of feasibility studies; the uncertainty of profitability; risks and uncertainties relating to the interpretation of drill results, the geology, grade and continuity of mineral deposits; risks related to the inherent uncertainty of production and cost estimates and the potential for unexpected costs and expenses; results of prefeasibility and feasibility studies, and the possibility that future exploration, development or mining results will not be consistent with the Company's expectations; risks related to gold price and other commodity price fluctuations; and other risks and uncertainties related to the Company's prospects, properties and business detailed elsewhere in the Company's disclosure record. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements. Investors are cautioned against attributing undue certainty to forward-looking statements. These forward looking statements are made as of the date hereof and the Company does not assume any obligation to update or revise them to reflect new events or circumstances. Actual events or results could differ materially from the Company's expectations or projections
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