Petrolympic Enters Agreement to Acquire 100% Interest in the Rayon d’Or Gold Property, Near Val d’Or, Quebec
TORONTO, March 15, 2021 (GLOBE NEWSWIRE) — Petrolympic Ltd. (TSX.V:PCQ) (OTC:PCQRF) (the “Company”) is pleased to announce that the Company has entered into an agreement to acquire a gold property located in the east of the Val d´Or mining camp, Province of Quebec (the “Property”). The Property consists of two contiguous map-designated claims (cells) (no. 45248 & 45251) covering 285.9Acres which are part of a group of six claims (853total Acres) recently purchased, complementing a unifying a total of 37 contiguous map-designated claims (cells) to a grand total of 5263 Acres of gold potential geology in the center of Vauquelin township (NTS 32C03) approximately 40 km east of the town of Val d’Or, a major gold mining centre in Northwestern Quebec.
On execution of the purchase agreement with the vendor, 1039244 BC. Ltd, the Company will pay the vendor an aggregate cash payment of $75,000 as part of the purchase price. The remainder of the purchase price will be satisfied through the issuance of an aggregate of 900,000 common shares of the Company and work commitments over 4 years. Upon the completion of the transaction the Company will have acquired 100% interest in the mineral rights of the Property. The vendor will also receive a 1.5% NSR royalty from all eventual commercial mineral production on the project of which 0.5% can be bought back for $500,000 at start of production.The issuance of the common shares under the transaction shall be subject to applicable securities laws, any securities regulatory authority having jurisdiction, and the policies of the TSX Venture Exchange, and the common shares shall be subject to a four-month hold period in accordance with applicable securities laws and the policies of the TSX Venture Exchange. Completion of the acquisition remains subject to approval by the TSX Venture Exchange.The Property is underlain by volcano-sedimentary units of intermediate to mafic composition of the Val-d’Or Formation with associated synvolcanic intrusions. The Vauquelin-Pershing batholithic intrusive complex occupies the eastern part of the property.A map accompanying this announcement is available at: https://www.globenewswire.com/NewsRoom/AttachmentNg/b7a5d089-c6cd-4937-9eae-ed5db7897c8aPrevious work has identified several sheared, altered, schistozed and mineralized NNW-SSE structure steeply dipping to SW. These structures are hosted within rhyolites, locally porphyritic andesites and several porphyritic felsic dykes. The mineralized structures are injected with quartz-carbonate veins and veinlets which are associated with sulfides. The sulfide mineralization mainly consist of pyrite, pyrrhotite, chalcopyrite and gold. Previous drilling has delineated two auriferous zones with most significant intersections of 3.37 g/t Au over 3.44 m and 12.34 g/t Au over 4.0 m.Geoscientific compilation of available data (geophysical, geological and geochemical) demonstrates the most likely orientation of the mineralized structures as well as their possible lateral and depth extensions.The presence of gold (Au), silver (Ag), copper (Cu) and zinc (Zn) geochemistry soil ‘B’ Horizon, several Induced Polarization (IP-Resistivity) anomalous zones and axes, as well as two gold mineralized zones intersected by drilling confirm the favourable potential of the Rayon d’Or Property.Several gold deposits were found in the area in the past, such as:Forsan-Exxeter with 393,869 t @ 4.91 g/t Au (L. Perron, 1988, GM 47652, MERNQ).Bevcon-Buffadisson, a past producing gold mine from 1945 to 1967 with 438,000 ounces of gold @ 4.30 g/t Au average grade (Sigeom, MERNQ).Croinor Gold Deposit with proven and probable reserves totaling 602,994 t @ 6.66 g/t Au (Monarch Gold Corporation website).Cadillac East Group – Nordeau West Deposit with inferred resources of 1,1 Mt @ 4.09 g/t Au (O3 Mining Inc. website).Chimo Gold Mine located approximately seven kilometers south with Indicated Resources of 4,017,600 tonnes @ 4.53 g/t Au and Inferred Resources of 4,877,900 tonnes @ 3.82 g/t Au (Cartier Resources Inc. press release dated May 5, 2020).Sleepy Lake Gold Deposit of Probe Metals with 1,85 Mt Au @ 4.7 g/t Au for 279,760 ounces of gold. (2014 NI 43-101 Technical Report).A map accompanying this announcement is available at: https://www.globenewswire.com/NewsRoom/AttachmentNg/6fb5793e-d686-4094-967d-d15339ae3fc1The Rayon d’Or Property is located within a very favourable metallogenic environment hosting several gold mineralized structures, deposits and past producers. Exploration programs will consist of geological, geophysical and geochemical surveys and follow-up drilling on generated priority exploration targets and definition drilling on the extensions of known gold zones permitting the Rayon d’Or Property to improve to an advance project.Petrolympic continues to pursue and believe in Quebec’s oil and gas potential and intends to proceed with de development of its conventional assets as soon as the regulatory delays are resolved.An oil reservoir has been documented in the Massé structure (Lower St. Lawrence), with a potential of 53.6 BCF of gas and 52.2 million barrels of oil over a probable average area of 5.2 km2 (an oil equivalent total of 61.1 million barrels of oil equivalent), as estimated by Sproule (see the press release dated May 17, 2016, filed on www.sedar.com). Petrolympic has a 30% working interest in this structure and in the surrounding acreage which also bears a significant potential. Petrolympic has also owns 100% of the adjacent Mitis and Massé properties. In the Mitis Property, several conventional drilling targets have been identified with a potential for dry gas in sandstones (see the press release dated August 31, 2015, filed on www.sedar.com). In the Matapedia Property, a soil gas survey has independently confirmed the occurrence of several prospects identified by seismic data, with a potential for dry gas and condensates in naturally fractured carbonates.Qualified PersonThe technical information contained in this news release has been prepared and provided by Alain-Jean Beauregard, géo., a member in good standing of l’Ordre des Géologues du Québec (OGQ, member 227) and a Qualified Person within the context of Canadian Securities Administrators’ National Instrument (“NI”) 43-101; Standards of Disclosure for Mineral Projects.Cautionary notes related to news releaseThis news release contains information about adjacent properties on which the Company has no right to explore or mine. Readers are cautioned that mineral deposits on adjacent properties are not indicative of mineral deposits on the Company’s properties.NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATIONS SERVICES PROVIDER HAVE REVIEWED OR ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATIONCertain information contained or incorporated by reference in this press release, including any information regarding the proposed acquisition, constitutes “forward-looking statements.” All statements, other than statements of historical fact, are to be considered forward-looking statements. Forward-looking statements are necessarily based on a number of estimates and assumptions that, while considered reasonable by the Company, are inherently subject to significant business, economic, geological and competitive uncertainties and contingencies. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guaranteeing of future performance. Known and unknown factors could cause actual results to differ materially from those projected in the forward-looking statements. Such factors include but are not limited to: economic and global market impacts of the COVID-19 pandemic, fluctuations in market prices, exploration and exploitation successes, continued availability of capital and financing, changes in national and local government legislation, taxation, controls, regulations, expropriation or nationalization of property and general political, economic, market or business conditions. Many of these uncertainties and contingencies can affect our actual results and could cause actual results to differ materially from those expressed or implied in any forward-looking statements made by, or on behalf of, us. Readers are cautioned that forward-looking statements are not guarantees of future performance and, therefore, readers are advised to rely on their own evaluation of such uncertainties. All of the forward-looking statements made in this press release, or incorporated by reference, are qualified by these cautionary statements. We do not assume any obligation to update any forward-looking statements.For further information please contact:The PresidentMendel Ekstein82 Richmond St East
Toronto, ON M5C 1P1
Tel. 845-656-0184 Fax 845-231-6665