DSM Syndicate Discovers Extensive High-Grade Vein System Assaying Up to 110 Grams Per Tonne Gold (3.21 oz/t)
VANCOUVER, British Columbia, Nov. 06, 2018 (GLOBE NEWSWIRE) — Juggernaut Exploration Ltd. (JUGR.V) (the “Company” or “Juggernaut”) is pleased to report channel, chip, and grab sample assay results of up to 110 grams per tonne gold (3.21 ounces per ton gold) from the Big Show Zone Vein system, measuring 2 km by 1 km. It remains open in all directions, containing multiple large en-echelon gold-bearing mineralized quartz veins. The Big Show Zone is located on the Gold Standard property, four kilometres north of Bella Coola, British Columbia. The Gold Standard property is 100% owned by the DSM Syndicate, a private precious metals project generator in British Columbia that holds a total of six properties to date, of which Juggernaut Exploration Ltd. owns a 20% interest.
2018 Highlights Include:
- Extensive new bedrock discovery in area of recent snowpack and glacial abatement with no historic work recorded in the area.
- Discovery of the Big Show Zone: a large zone of prolific quartz veining that contains multiple large en-echelon quartz veins that outcrop within a 2 km by 1 km zone that remains open in all directions (link to video).
° Seven large shear-zone hosted mineralized vein systems containing consistent high-grade gold mineralization have been discovered to date.
° Vein Highlights include:
1. Vein system 1 (Kraken) assays up to (link to image):
• 71.8 g/t Au (2.1 oz/t), 64.4 g/t Ag, 72.6 g/t AuEq (0.5 Chip Sample)
2. Vein system 2 (Goldzilla) assays up to (link to image):
• 110 g/t Au (3.21 oz/t), 934 g/t Ag, 121.8 g/t AuEq (Grab Sample)
• 10.8 g/t Au, 85.5 g/t Ag, 11.85 g/t AuEq (2m Chip Sample)
3. Vein system 3 (Leviathan) assays up to (link to image):
• 96.8 g/t Au (2.8 oz/t), 429 g/t Ag, 106.7 g/t AuEq (Grab Sample)
• 26.9 g/t Au, 70.4 g/t Ag, 27.79 g/t AuEq (1.5 m Chip Sample)
° Multiple other large veins were also discovered have yet to be sampled providing for excellent additional gold potential.
- The Big Show Zone is situated within a large regional high strain zone, a corridor of brittle and ductile deformation.
° A channel sample grab of chlorite-schist from within a 15-metre-wide shear zone returned 0.28 g/t Au over 0.15 meters (link to image).
- The geological setting and style of mineralization: large gold-bearing mineralized veins and shear zones are consistent with a mesothermal/orogenic system. These systems are often deep rooted and are mined to depths in excess of 1 to 3 kilometres (link to image).
- Approximately 67% of Canadian gold production comes from this world class geologic setting, with examples including the nearby Bralorne Pioneer Camp in British Columbia (4.17 M/oz) and many regions within the Canadian shield including Kirkland Lake (>40 Moz), Timmins (>70 Moz), Val d’Or/Noranda (>69 Moz) and Red Lake gold camps (>29 Moz) (link to image).
- Based on the discovery of multiple new gold mineralized veins the claim block was recently expanded from 690 Ha to 1774 Ha.
° The Gold Standard property is an original discovery area located in a World Class Geological setting that remains largely unexplored, providing for tremendous untapped gold potential.
The Property was generated and staked by the DSM Syndicate in 2017 following positive results from a brief reconnaissance exploration program. A limited follow-up program in 2018 was carried out to systematically prospect the other unexplored regions of the claim block and expand on the 2017 mineralized zones. This resulted in the discovery of seven new shear-zone hosted en-echelon large quartz vein systems, which remain open, confirming the tremendous untapped gold potential of the largely unexplored Gold Standard property.
This mineralized system is part of a regional high strain zone, a brittle and ductile, sub-vertical shear zone system. Localization of high strain zones within the system are associated with sheeted, oxidized, sulphide-bearing quartz veins that have been identified in outcrop within a 2 km by 1 km zone, which remains open in all directions. Discrete quartz veins trend up to 350 meters in length and are up to 5 meters thick. They host variable amounts of oxidized pyrite and disseminated pyrite with chalcopyrite. Additionally, the shear zones are typically demarked by chlorite schist of up to 15 metres wide, where a channel grab from a chlorite within a shear zone assayed 0.28 g/t Au over 0.15 meters. To date on the Big Show, all seven large vein systems identified and sampled contain gold mineralization.
During the brief program a total of 15.2 metres of channel sampling was completed. Highlights are reported in Table 1 and include a 0.5 metre channel sample containing 32.00 g/t AuEq (31.00 g/t Au, 83.90 g/t Ag). Additionally, thirty chip samples were taken with highlights including a 0.5 metre chip sample of 72.57 g/t AuEq (71.80 g/t Au, 64.40 g/t Ag) with six samples assaying over 10 g/t Au. Fifty-two grab samples were collected with highlights including 121.84 g/t AuEq (110.00 g/t Au, 934.00 g/t Ag) and 106.68 g/t AuEq (96.80 g/t Au, 429.00 g/t Ag).
Table 1 – Gold Standard Property Highlights
1Grab samples are selective in nature and collected to determine the presence or absence of mineralization and are not intended to be representative of the material sampled
2True thickness of mineralized zone not known
3AuEq metal values are calculated using: Au $1222.9/oz, Ag $14.63/oz, Cu $2.8499/lb
Gold Standard is situated within a regional corridor of brittle and ductile deformation that is proximal to the boundary between the Intermontane and Insular superterranes, demarked by the Coast Shear Zone. The focus of prolonged faulting and shearing within this structural corridor on the Gold Standard property provided extensive conduits for mineralizing fluids and favourable sites for mineralization (link to image). Within the Big Show Zone, veins occur in an en echelon pattern to the regional north-northwest orientation of the major shear zones. These mesothermal/orogenic characteristics are consistent with gold-bearing mineralized veins and shear zones. Deposits of this nature are found at the nearby Bralorne Pioneer Mining Camp in British Columbia (4.15 Moz) and many regions within the Canadian Shield including the Timmins, Val d’Or/Noranda, and Red Lake gold camps. Typically, deep-rooted mines in these camps extend to depths in excess of 1 to 3 kilometers (link to image).
Based on very positive results on the Gold Standard property, a follow-up exploration program consisting of comprehensive prospecting, mapping, and systematic reconnaissance geochemical sampling, ground magnetics, and drone mapping is recommended. This surface program is in preparation for an inaugural drill program to test this extensive high-grade gold system both along strike and to depth. The property is in an alpine area with abundant bedrock exposure due to recent glacial and snowpack abatement and is located only four kilometres from Bella Coola, BC, 1 km to tidewater and logging roads providing for excellent proximity to infrastructure for cost effective exploration.
Juggernaut Exploration Ltd. (TSX-V: JUGR) owns a 20% interest in the DSM Syndicate.
Amended Option Agreements and ROFRs
Juggernaut has entered into agreements (the “Agreements“) with The J2 Syndicate (the “Optionor“), pursuant to which the parties have agreed to further amend the terms of the Company’s option on each Empire and Midas properties (the “Amendments”) as follows:
- Share issuances originally to be made by Juggernaut on February 1, 2019, consisting of an aggregate of 8,200,000 common shares of the Company (each, a “Common Share“), will be extended to March 30, 2020.
- Annual exploration expenses originally to be made by Juggernaut by December 31, 2019, consisting of an aggregate of $2,000,000, will be reduced to $1,200,000.
- Optional share issuances originally to be made by Juggernaut on May 1, 2019, consisting of an aggregate of 8,200,000 Common Shares, will be extended to March 30, 2021.
- Optional cash payments originally to be made by Juggernaut on May 1, 2019, 2020, 2021, 2022 and 2023, consisting of an aggregate of $1,000,000 on each such payment date, will be extended to March 30, 2021, 2022, 2023, 2024 and 2025, respectively.
- Optional share issuances originally to be made by Juggernaut on December 15, 2024, consisting of an aggregate of 8,200,000 Common Shares, will be extended to March 30, 2025.
- Optional cash payments originally to be made by Juggernaut on December 15, 2024, consisting of an aggregate of $1,000,000, will be extended to March 30, 2027.
- Optional cash payments originally to be made by Juggernaut on May 1, 2027, consisting of an aggregate of $1,000,000, to be paid March 30, 2027.
The Amendments are subject to Juggernaut satisfying certain conditions pursuant to the Agreements, including, but not limited, to the Company: (a) completing a private placement of securities of Juggernaut on or prior to March 30, 2019 for minimum net proceeds of $1,500,000; (b) incurring aggregate exploration expenditures of a minimum of $1,200,000 on the Midas and/or Empire properties during 2019; (c) incurring aggregate exploration expenditures of $300,000 (the “Exploration Commitments“) on certain properties of the Optionor and The DSM Syndicate (“DSM”) during 2019; and (d) entering into agreements with the Optionor and DSM (the “Funding Agreements“), pursuant to which, inter alia, Juggernaut will agree to provide the Exploration Commitments in consideration for a right of first refusal in favour of the Company on each of the Bullion and Gold Standard properties, respectively. The Company expects to finalize the Funding Agreements within the next 30 days.
Stephen Roach P. Geo is the qualified person as defined by National Instrument 43- 101, for Juggernaut Exploration projects, and supervised the preparation of, and has reviewed and approved, the technical information in this release.
All rock, channel and talus fine samples were crushed and pulverized at ALS Canada Ltd.’s lab in Vancouver, BC. ALS is either Certified to ISO 9001:2008 or Accredited to ISO 17025:2005 in all of its locations. The resulting sample pulps were analyzed for gold by fire assay in Vancouver, BC. The pulps were also assayed using multi-element aqua regia digestion at ALS Canada Ltd.’s lab in Vancouver, BC. The coarse reject portions of the rock samples, as well as the pulps, were shipped to DSM Syndicate’s storage facility in Terrace, BC. All samples were analyzed using ALS Canada Ltd.’s assay procedure ME-ICP41, a 1:1:1 aqua regia digestion with inductively-coupled plasma atomic emission spectrometry (ICP-AES) or inductively-coupled plasma mass spectrometry (ICP-MS) finish for 35 elements as well as the Au-AA24 lead collection fire assay fusion procedure with atomic absorption spectroscopy (AAS) finish. Any results greater than 100 ppm for silver or 10,000 ppm copper, lead and zinc were additionally assayed using ALS’s OG46 method particular to each element. This method used an HNO3-HCl digestion followed by ICP-AES (or titrimetric and gravimetric analysis). Gold values of greater than 10 ppm Au were assayed by the Au-GRA22 method which includes a fire-assay fusion procedure with a gravimetric finish. QA/QC samples including blanks, standards, and duplicate samples were inserted regularly into the sample sequence.
The reader is cautioned that grab samples are spot samples which are typically, but not exclusively, constrained to mineralization. Grab samples are selective in nature and collected to determine the presence or absence of mineralization and are not intended to be representative of the material sampled.
For more information please contact:
Juggernaut Exploration Ltd.
Mr Dan Stuart
President and Chief Executive Officer
Tel: (778) 223-0293
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FORWARD LOOKING STATEMENT
Certain disclosure in this release may constitute forward-looking statements that are subject to numerous risks and uncertainties relating to Juggernaut’s operations that may cause future results to differ materially from those expressed or implied by those forward-looking statements, including its ability to complete the contemplated private placement. Readers are cautioned not to place undue reliance on these statements. NOT FOR DISSEMINATION IN THE UNITED STATES OR TO U.S. PERSONS OR FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES. THIS PRESS RELEASE DOES NOT CONSTITUTE AN OFFER TO SELL OR AN INVITATION TO PURCHASE ANY SECURITIES DESCRIBED IN IT.