TORONTO, June 11, 2020
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TORONTO, June 11, 2020 /CNW/ - Central Timmins Exploration Corp. ("CTEC" or the "Company") (TSXV: CTEC) reports that, subject to regulatory approval, it has signed an option agreement with an arm's length private vendor to acquire up to a 100% interest in the Silver Reef Property located in northwest British Columbia.
The Silver Reef Property consists of six mineral tenures that cover an area of over 4,425 hectares approximately 85 kilometers north of Hazelton BC. The exploration target at Silver Reef is similar to the historic and high-grade Silver Standard Mine located approximately 80 kilometers to the south. At Silver Reef, as with Silver Standard, the quartz/carbonate veins and stockwork are associated with a regional shear zone that cuts through the alteration halo of a large granitic intrusive.
The Silver Reef property is a new discovery where limited exploration has been carried out to date. A total of 51 rock grab samples have been collected on the property with the highest-grade grab sample yielding 1,892 grams per tonne silver, 2.01 grams per tonne gold, 4.46% lead, and 2.7% zinc from a massive sulphide vein subcrop. Grab samples are collected as niche samples of rock material of specific style or character of interest and are not necessarily representative of the mineralization hosted on the property.
In 2019, eight shallow packsack drill holes were completed (at depths ranging from 0.6 to 1.2 meters), with six holes partially successful in encountering bedrock. Although packsack drilling yielded generally poor core recoveries, results demonstrated elevated mineral values ranging from 0.11 to 0.42 grams per tonne gold, 56.4 to 322.0 grams per tonne silver, 0.12 to 1.0+% arsenic, 225 to 4,850 grams per tonne lead, and 182-712 grams per tonne antimony. The mineralization has been traced for over 1,500 meters, has a combined width up to 100 meters wide, and is made up of three zones. The hanging wall zone comprises quartz/calcite veins and stockwork with a combined width of up to 50 meters wide. Individual veins range up to 20 meters wide. The main shear zone is up to 30 meters wide and contains variable amounts of disaggregated quartz/calcite and sulphide veins. Discontinuous ferrocrete and gossanous kill zones along the hanging wall contact of the main structure are up to 20 meters wide and indicate the presence of veins and stockworks containing massive sulphides.
Graeme Evans, P.Geo is the qualified person responsible for the Silver Reef Property and has reviewed, verified and approved the scientific and technical information in this news release relating thereto.
In 2018, rock grab samples collected were transported for preparation and analysis to the SGS Mineral Services laboratory in Burnaby, BC, Canada for multi-elements ICP and fire assays for gold. In 2019, pack sack drill core and rock grab samples were transported for preparation and analysis to the ALS Canada Ltd. laboratory in North Vancouver, BC, Canada for multi-elements ICP and fire assays for gold.
Option Agreement Terms
Under the terms of the Option Agreement, the Company can acquire up to a 70% interest in Silver Reef over a three year option period by paying to the vendor: $50,000 and 200,000 shares in its capital on the signing of the agreement; $200,000 and 200,000 shares in its capital on the first anniversary of the agreement; and $500,000 and 800,000 shares in its capital on the second anniversary of the agreement. The Company is also required to incur exploration expenditures of $250,000 before the first anniversary of the agreement, $750,000 of cumulative exploration expenditures by the second anniversary of the agreement and $2 million of cumulative exploration expenditures by the third anniversary of the agreement.
Following exercise of the option, the Company has the right for a period of 120 days to acquire the remaining 30% interest in Silver Reef, for a 100% total interest, on payment of $7.5 million of which up to $4 million may be paid in shares of the Company at its election. If the Company elects to not purchase the remaining 30% interest, the Company and the vendor shall form a joint venture, with the Company appointed the operator. During the first three years of the joint venture, the Company will fund the vendor's participating interest in the joint venture. If the vendor fails to sell its interest in the joint venture during such three year period, the vendor's interest will convert to a 3% net smelter returns royalty, provided that the Company will have the opportunity to purchase the vendor's interest prior to such conversion for $7.5 million.
About Central Timmins Exploration Corp.
CTEC is an early-stage Canadian junior exploration company focused on precious metals exploration and development.
Forward Looking Information
This press release contains "forward-looking information" within the meaning of applicable securities laws that is intended to be covered by the safe harbours created by those laws. "Forward-looking information" includes statements that use forward-looking terminology such as "may", "will", "expect", "anticipate", "believe", "continue", "potential" or the negative thereof or other variations thereof or comparable terminology. Such forward-looking information includes, without limitation, the Company's expectations, strategies and plans for the Silver Reef Property, including the Company's planned expenditures and exploration activities.
Forward-looking information is not a guarantee of future performance and is based upon a number of estimates and assumptions of management at the date the statements are made. Furthermore, such forward-looking information involves a variety of known and unknown risks, uncertainties and other factors which may cause the actual plans, intentions, activities, results, performance or achievements of the Company to be materially different from any future plans, intentions, activities, results, performance or achievements expressed or implied by such forward-looking information. See "Risk Factors" in the Company's final prospectus dated October 4, 2018 filed on SEDAR at www.sedar.com for a discussion of these risks.
The Company cautions that there can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, investors should not place undue reliance on forward-looking information.
Except as required by law, the Company does not assume any obligation to release publicly any revisions to forward-looking information contained in this press release to reflect events or circumstances after the date hereof.
Neither the Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE Central Timmins Exploration Corp
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Central Timmins Exploration Corp., www.centraltimmins.com; Joseph Ovsenek, President, CEO and Chairman, [email protected], Tel: +1 (604) 765-3424; Chris Hopkins, CFO, [email protected], Tel: 416 786 9793Copyright CNW Group 2020