BMM: TSX-V
VANCOUVER, Feb. 14, 2017 /CNW/ - Black Mammoth Metals
Corporation (TSX-V: BMM / Frankfurt: LQK / OTCBB: LQRCF) ("Black
Mammoth" or the "Company") is pleased to announce that Black
Mammoth Gold Corporation ("Black Mammoth Gold"), a wholly
owned subsidiary of Black Mammoth Metals Corporation, has entered
into an Assignment and Assumption Agreement dated February 13, 2017, with IDA Gold Corporation
("IDA") pursuant to which IDA has assigned, and Black Mammoth Gold
has assumed, all of the rights and obligations of the Lessee under
a long-term lease (the "Lease") of the Blanco Creek mineral
property ("Blanco Creek") or the ("Property") located in central
Idaho. The Lease is subject to an underlying two percent (2%)
production royalty in favour of the landlord and a one percent (1%)
production royalty in favour of IDA. The Assignment and
Assumption Agreement is subject to the approval of the TSX Venture
Exchange ("TSX-V").
The Blanco Creek Property consists of 40 Federal Unpatented Lode
Claims totalling approximately 826 acres (334 hectares) and
includes three historic underground, vein hosted, gold
mines: the Hercules, the Pasadena, and the Alberta. During the early 1940s, the #1 and #2
adits, along with an intermediate level, were established at the
Hercules, with timber and equipment for mill construction hauled to
the Property. The onset of World War II stopped all
construction work.
The Property lies along a 3658 metre (12,000 feet) strike length
of the regional Blanco Creek Shear
Zone in the Elk City Mining District and is located 266 km
(166 miles) southeast of Spokane, Washington. The nearest
centre, Elk City, is located approximately 27 km (17 miles)
northwest from the Property. There is a dirt road that provides
vehicle access to the Property. The topography is suitable for
underground mining along the strike of the veins. Ample water
supplies are available for exploration and mining purposes.
Target:
The main target of interest at Blanco Creek is the gold and
silver bearing sulfide quartz veins, especially the well-developed
zone in the Hercules workings. Exploration by two previous
operators identified a geological target for the Blanco Creek
property in the order of 1.7 to 2.48 million tons, grading 0.20 to
0.33 oz/ton Au (1.54 to 2.24 million tonnes, grading 6.85 to 11.31
g/tonne Au). The geological target is defined by the following
exploration programs:
- Grey Eagle Resources Inc. (January
1986) calculated a geological target of 2.48 million tons
grading 0.33 oz/ton Au and 2.00 oz/ton Ag (2.24 million tonnes
grading 11.31 g/tonne Au and 68.57 g/tonne Ag), based on a width of
5.75 m (18.6 feet), vertical depth of 150 metres (500 feet) and a
strike potential of 1/3 of 1650 metres (550 metres or 1800 feet).
They conducted a geochemical survey, VLF electromagnetic survey and
opened the Hercules #2 adit for sampling in 1983 and 1984.
- Elk City Gold Mining Inc. (September
1995) assumed a width of 3 m (10 ft), a strike length of
3658 m (12,000 feet) and depth of 520 m (1700 feet) and a tonnage
factor of 12 cubic feet per ton to arrive at a geological target of
17 million tons (15.42 million tonnes). They suggested only 10% of
the tonnage contained mineralized shoots to arrive at a potential
tonnage of 1.7 million tons (1.54 million tonnes). They estimated a
grade of 0.20 to 0.30 oz/ton Au (6.85 g/tonne to 10.28 g/tonne)
based on historical information.
Black Mammoth cautions investors to note the potential
quantity and grade of the geological target are conceptual in
nature. A qualified person has not done sufficient work to
classify the geological target as mineral resources as
defined by NI 43-101, and it is uncertain if future exploration
will result in the target being delineated as mineral
resources. The geological target is based solely on surface
and underground rock chip sampling and geological mapping that is
not of sufficient detail to qualify it as mineral resources.
The work required to advance this geological target to mineral
resources will include a full compilation of historic data,
detailed geological mapping, geochemical sampling and possibly
geophysics, followed by drilling.
NI 43-101 Report:
Mr. R. Tim Henneberry, P. Geo. of
Mammoth Geological LTD. has been retained to prepare a NI 43-101
Technical Report for the Property. Mr. Henneberry has worked
on the Property in the past and the Company expects that his
knowledge of the Property will enhance the exploration program and
permitting activities.
Geology:
The Property lies along the northeast-trending Blanco Creek Shear Zone, in an area underlain by
a large regional Cretaceous batholith that has intruded Proterozoic
meta-sediments, and cut by Eocene dikes. Gold and
silver-bearing quartz-sulphide veins are found throughout the area,
often intimately associated with Eocene felsic to basic dike
swarms. These dikes are associated with mineralization at
other historic mines in the district. There are two primary
rock units within the Property: a Proterozoic biotite gneiss
and a series of Eocene quartz- eye porphyry dikes. The dikes
are believed to be part of a series of northeast trending Tertiary
dike swarms corroborated by the regional geology map.
Alteration consists of varying amounts of clay and iron
oxides. The dikes range in width from 3 metres to 33 metres
(9.8 feet to 108 feet). Quartz veins are most commonly
associated with the dikes. In the developed areas, most of
the mineralization is primary sulfides and include: pyrite,
chalcopyrite, galena and covellite. Gold is associated with pyrite
and sometimes is free near surface, especially above the water
table, where oxidized free-milling mineralization is
encountered. USGS geologists Thomson and Ballard in their 1924
report mention several areas in the Hercules mine where coarse gold
was observed. Silver is associated with galena.
Lease Terms (in USD):
The Lease term is 20 years approximately (due date is
October 14, 2036) and is renewable
for up to an additional 40 years (60 years in total).
Advance Royalty
Payments ("Royalty
Payments")
|
Payable On Or
Before
|
|
|
$6,000
|
On TSX-V Approval of
the Assignment and Assumption
|
|
|
$8,000
|
On June 1, 2017; and
each June 1 thereafter
|
There is a 3% net smelter royalty (NSR) where 2% is buyable for
$3,000,000 minus any previously paid
Advance Royalty Payments. If Black Mammoth elects to buy the 2%
NSR, the Lease will terminate and the Property will be 100% owned
by Black Mammoth subject only to a 1% NSR. There is no work
commitment. Black Mammoth will reimburse IDA for all Property
related expenses at cost.
The Lease is considered a related party transaction as Black
Mammoth and IDA have two directors in common.
Upon TSX-V approval, the Company anticipates that Blanco Creek
will become Black Mammoth's flagship property and primary
focus. The Company's 100% owned British Columbia Cu Au
porphyry target properties, Coppertonic and Frances Bay, are available for lease or
option.
Mark J. Abrams, CPG,
Non-Independent Qualified Person as defined by NI 43-101 and
Director of Black Mammoth prepared and approved the technical
information contained in this release. All geological
information provided in this press release, including all
information on the Blanco Creek Property has been gathered during
the Company's due diligence process and has not been independently
verified by management.
On behalf of the board,
"Dustin Henderson"
Dustin Henderson, BBA
President, CEO and Corporate Secretary
"Neither 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 press release contains
forward-looking statements and forward-looking information
(collectively, "forward looking statements") within the meaning of
applicable Canadian and United
States securities laws. All statements, other than
statements of historical fact, included herein, including
statements regarding the anticipated content, commencement,
duration and cost of exploration programs, anticipated exploration
program results, the discovery and delineation of mineral
deposits/resources/reserves, the timing of the receipt of assay
results, the visual continuity of certain mineralized intervals and
business and financing plans and trends, the potentially open
nature of the mineralized zones on the property and the potential
for future discoveries of additional mineralization on the property
are forward-looking statements. Forward-looking statements are
typically identified by words such as: believe, expect, anticipate,
intend, estimate, postulate and similar expressions or are those
which, by their nature, refer to future events. Although the
Company believes that such statements are reasonable, there can be
no assurance that such statements will prove to be accurate, and
actual results and future events could differ materially from those
anticipated in such statements. The Company cautions investors that
any forward-looking statements by the Company are not guarantees of
future performance, and that actual results may differ materially
from those in forward-looking statements. Important factors that
could cause actual events and results to differ materially from the
Company's expectations include those related to weather, equipment
and staff availability; performance of third parties; timing of
receipt of assay results from third party analytical facilities;
risks related to the exploration stage of the Company's projects;
market fluctuations in prices for securities of exploration stage
companies and in commodity prices; and uncertainties about the
availability of additional financing; risks related to the
Company's ability to identify one or more economic deposits on the
properties, and variations in the nature, quality and quantity of
any mineral deposits that may be located on the properties; risks
related to the Company's ability to obtain any necessary permits,
consents or authorizations required for its activities on the
properties; and risks related to the Company's ability to produce
minerals from the properties successfully or profitably. Trading in
the securities of the Company should be considered highly
speculative. All of the Company's public disclosure filings may be
accessed
via www.sedar.com and readers
are urged to review these materials, including the latest technical
reports filed with respect to the Company's mineral properties.
This news release contains information with respect to adjacent or
similar mineral properties in respect of which the Company has no
interest or rights to explore or mine. Readers are cautioned that
the Company has no interest in or right to acquire any interest in
any such properties, and that mineral deposits on adjacent or
similar properties are not indicative of mineral deposits on the
Company's properties.
This press release is not, and is not to be construed in any
way as, an offer to buy or sell securities in the United States.
SOURCE Black Mammoth Metals Corp