Greencastle Options Historic Mayflower Gold Property in Emerging Rainy River Mining District, NW Ontario
02 December 2020 - 11:00PM
Greencastle Resources Ltd. (“Greencastle” or ‘the Company”) (TSXV:
“VGN”) today announces the Company has entered into an option
agreement to earn an undivided 100% interest in the Mayflower Gold
Property 35 km west of Atikokan, Northwestern Ontario.
The Mayflower property consists of 64 claims
covering the historic Mayflower gold mine workings in the emerging
Rainy River - Atikokan gold district. Historic work between 1899
and 1928 resulted in the sinking of a 30 metre shaft and
approximately 50 metres of underground workings on two levels. Grab
samples collected by the Ontario Department of Mines in 1981
returned values ranging from nil up to 0.95 oz/t gold and 5.17 oz/t
silver. Additional historic exploration included about 1,000 metres
of near-surface drilling in 12 holes. The Mayflower has seen little
modern exploration and has excellent infrastructure, located close
to the former iron ore mining town of Atikokan, some 200 km west of
Thunder Bay, Ontario as shown in Figure 1 below.
Anthony Roodenburg, CEO of Greencastle
commented, “We are excited to add another strategic gold project to
our mineral portfolio in Ontario and Nevada. The Mayflower has seen
limited modern exploration for a variety of reasons. The Property's
location in the prolific Rainy River – Atikokan region suggests
there may be tremendous exploration upside.”
Several large gold deposits are located in the
Atikokan - Rainy River region. The Hammond Reef gold deposit,
situated 55 km northeast of the Mayflower property, contains NI
43-101 Measured and Indicated resources of 4.5 million ounces of
gold contained in 208 million tonnes grading 0.67 g/t Au and
Inferred resources of 12,000 ounces of gold (0.5 million tonnes
grading 0.74 g/t Au.), using a cut-off gold grade of 0.32 g/t, as
of December 31, 2019 (as per www.agnicoeagle.com). The Rainy River
producing mine, located about 140 km to the west of the Mayflower
property, has NI 43-101 Reserves of 2.6 million ounces gold and 6.3
million ounces silver, and Resources of 1.9 million ounces gold and
5.1 million ounces silver (as per www.newgold.com)
The terms of the agreement call for Greencastle
to pay the vendors a total of $100,000 cash, issue a total of
600,000 shares of Greencastle subject to TSX Venture Exchange
approval, and complete a total of $250,000 in Exploration
Expenditures to earn a 100% interest in the Property, subject to a
2% Net Smelter Return (NSR) Royalty. Greencastle retains the option
to purchase sole rights to half of the 2% NSR Royalty from the
vendors for a payment of $1,000,000.
About Greencastle
In addition to this acquisition, Greencastle is
advancing two gold projects on the prolific Battle Mountain gold
trend in Nevada, U.S.A. and the recently acquired Seagrave gold
property near Red Lake, Ontario.
The 2020 field program is continuing at the
Jewel Ridge property, currently under option to Golden Lake
Exploration Inc. (CSE: GLM). Greencastle is also a founding
shareholder and owns 10,700,000 common shares of Deveron Corp.
(TSXV: FARM). Deveron is a Canadian technology company that is
revolutionizing precision agriculture in North America.
Greencastle’s disclosure of a technical or
scientific nature in this news release has been reviewed and
approved by James Pirie, P.Eng, who serves as a qualified person
under the definition of National Instrument 43-101.
For additional information, please visit www.greencastle.ltd or
contact Anthony Roodenburg, CEO, 416-367-4571 ext. 222.
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.
Cautionary Note Regarding Forward-looking
Statements
This news release contains forward-looking
statements. These statements are based on information currently
available to the Company and the Company provides no assurance that
actual results will meet management’s expectations. Forward-looking
statements include estimates and statements that describe the
Company’s future plans, objectives or goals, including words to the
effect that the Company or management expects a stated condition or
result to occur. Forward-looking statements may be identified by
such terms as “believes”, “anticipates”, “expects”, “estimates”,
“may”, “could”, “would”, “will”, or “plan”. Since forward-looking
statements are based on assumptions and address future events and
conditions, by their very nature they involve inherent risks and
uncertainties. Actual results relating to, among other things,
results of exploration, project development, reclamation and
capital costs of the Company’s mineral properties, and the
Company’s financial condition and prospects, could differ
materially from those currently anticipated in such statements for
many reasons such as: changes in general economic conditions and
conditions in the financial markets; changes in demand and prices
for minerals; litigation, legislative, environmental and other
judicial, regulatory, political and competitive developments;
technological and operational difficulties encountered in
connection with the activities of the Company; and other matters
discussed in this news release. This list is not exhaustive of the
factors that may affect any of the Company’s forward-looking
statements. These and other factors should be considered carefully,
and readers should not place undue reliance on the Company’s
forward-looking statements. The Company does not undertake to
update any forward-looking statement that may be made from time to
time by the Company or on its behalf, except in accordance with
applicable securities laws.
A photo accompanying this announcement is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/faa270c6-937b-4335-82f7-0bcbe9f88ef8
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