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TORONTO, July 9, 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 ArcWest Exploration Inc. ("ArcWest"), an
arm's length TSX Venture Exchange listed company, to acquire up to
a 70% interest in the Todd Creek Property, located within the
Golden Triangle in northwest British
Columbia.
Todd Creek
The Todd Creek Property consists of 69 mineral tenures that
cover an area of over 32,000 hectares, located approximately 35
kilometers northeast of Stewart,
BC and bordering the eastside of Pretium Resources Inc.'s
Bowser Claims. Highway 37A connecting Stewart to Highway 37 and the transmission
line providing power to Stewart
pass through the southern portion of the property.
The western side of the Todd Creek Property covers a
12-kilometer by 3-kilometer corridor of altered lower Jurassic
volcanic rocks which host at least four zones of gold-copper
mineralization, known as Fall Creek, Ice Creek, Yellow Bowl and
South zones. These zones are found in the same stratigraphy
that hosts the nearby Brucejack, Snowfield, and Goldstorm
deposits. On the eastern side of the property, a zone of VMS
mineralization has been discovered in the Iskut River formation,
which is the same formation that hosts the Eskay Creek deposit.
Historically, Newmont Mining Corporation discovered epithermal
copper-gold mineralization at the South zone in 1959. In the
late 1980s, a joint venture led by Noranda drilled several zones on
the property which returned significant gold mineralization.
These intersections included 7.61 grams per tonne gold and 1.58%
copper over 12.65 meters at the Fall Creek Zone, 2.73 grams per
tonne gold and 0.59% copper over 13 meters at the Ice Creek Zone
and 3.61 grams per tonne gold and 0.27% copper over 29.75 meters
(including 6.91 grams per tonne gold and 0.36% copper over 8.15
meters) at the South Zone. Work by the Noranda joint venture
defined a non-43-101 compliant historic gold resource reported by
Hemlo Gold Mines Inc. (a joint venture member) in 1988. The
Company believes these historic results are strong evidence of the
excellent exploration potential of the Todd Creek Property and will
form the basis to guide future exploration.
More recently, ArcWest focused on the Yellow Bowl Zone which
covers a 4-kilometer-long gossan zone which hosts copper-gold
mineralized intrusions, and magmatic-hydrothermal and hydrothermal
breccias which have never been drill tested. ArcWest's
initial 50 rock chip and grab samples at Yellow Bowl in 2018
averaged 0.68% copper (see ArcWest news release December 12, 2018). In addition, a
phase one induced polarization survey outlined a significant
chargeability anomaly underlying the mineralized zone (see
ArcWest news release November 2,
2018).
The Todd Creek property has not been systematically explored for
large porphyry related copper-gold or a related bulk tonnage gold
system. The Company plans to initiate a systematic
exploration program by completing airborne and ground geophysical
work, in combination with further prospecting, geochemical
sampling, geologic mapping and drilling.
Quality Assurance
Jeff Kyba, P.Geo is the qualified
person responsible for the Todd Creek Property and has reviewed,
verified and approved the scientific and technical information in
this news release relating thereto.
Option Agreement Terms
Under the terms of the option agreement, the Company can acquire
(the "First Option") up to a 51% interest in the Todd Creek
Property over a five year option period by paying to ArcWest:
$100,000 and 200,000 shares in its
capital on the signing of the agreement; $150,000 on the first anniversary of the
agreement; $200,000 on the second
anniversary of the agreement; $200,000 on the third anniversary of the
agreement; $250,000 on the fourth
anniversary of the agreement and $250,000 on the fifth anniversary of the
agreement. The Company is also required to incur exploration
expenditures of $500,000 before the
first anniversary of the agreement (with a minimum of 1,000 meters
of drilling), $3,000,000 of
cumulative exploration expenditures by the second anniversary of
the agreement, $6,500,000 of
cumulative exploration expenditures by the third anniversary of the
agreement, $10,000,000 of cumulative
exploration expenditures by the fourth anniversary of the agreement
and $15,000,000 of cumulative
exploration expenditures by the fifth anniversary of the
agreement.
Following exercise of the First Option, the Company has the
right for a period of 60 days to acquire (the "Second Option") an
additional 19% interest in the Todd Creek Property, for a 70% total
interest, by completing a feasibility study within three years of
the exercise of the First Option and paying to ArcWest $250,000 on each anniversary of the exercise of
the First Option until the feasibility study is completed.
ArcWest has the right, at its election, to receive any payment from
the Company as cash, common shares in the Company's capital, or a
combination of 50% cash and 50% common shares in the Company's
capital. If ArcWest elects to receive any payment in common
shares in the Company's capital, the common shares will be priced
at CTEC's 30-day volume weighted average price.
On exercise of the Second Option (or the First Option, if the
Company does not elect to increase its interest to 19%), the
Company and ArcWest will form a joint venture, with the Company
appointed the operator. Until commercial production is
achieved on the property, the Company will fund the first
$100,000 of joint venture
expenditures. If either party's joint venture interest is
diluted to less than 10%, its joint venture interest will convert
to a 2% net smelter returns royalty, one percent of which may be
purchased by the other party for $5,000,000 at any time. If a production
decision is made by the joint venture to place the property into
production, the Company will arrange project financing for the
joint venture, the repayment of which shall be made out of cash
flows from the property in priority to distributions to the joint
venture participants.
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 Todd Creek
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
