Highlights:
- Acquisition of a 100% interest in the Crucero Gold Project in
Southeastern Peru;
- Lupaka previously reported a pit constrained indicated
resource of 1.00 million ounces grading 1.01 g/t gold and an
inferred resource of 1.03 million ounces grading 1.03 g/t
gold at a 0.4 g/t gold cut-off at the Project (see Table 1
below). GoldMining will treat this as a historic estimate and plans
to engage a qualified person to complete the necessary work to
verify the estimate and complete an independent technical
report;
- Approximately 23,000 m of diamond drilling over 72 holes have
been completed;
- 10 additional geophysical and geochemical targets identified on
the Project to date;
- Total consideration at closing will be 3,500,000 common shares
and $750,000 in cash representing
approximately 3% dilution to GoldMining shareholders; and
- Represents GoldMiningꞌs first acquisition in Peru, which is among the worldꞌs largest
producers of gold, copper and silver, and ranks as one of the most
attractive jurisdictions for mining investment in Latin America (Fraser Institute, 2016).
VANCOUVER, Sept. 19, 2017 /CNW/ - GoldMining Inc. (the
"Company" or "GoldMining") (TSX-V: GOLD; OTCQX: GLDLF) is pleased
to announce that it has entered into an agreement (the "Agreement")
with Lupaka Gold Corp. ("Lupaka"), to acquire a 100% interest in
the Crucero Gold Project (the "Project") located in Southeastern Peru.
Amir Adnani, Chairman of
GoldMining, commented: "We are pleased to announce another
milestone acquisition in furtherance of our long-term growth and
value-building strategy. With this acquisition, we continue to
realize our vision of consolidating multi-million ounce gold assets
and maximizing gold leverage for our shareholders. The transaction
also represents our first acquisition in the country of
Peru, which is among the most
prolific mining nations in the world."
Garnet Dawson, CEO of GoldMining,
commented: "With this acquisition, we will be acquiring not only a
project in a favourable mining jurisdiction with a historic
pit-constrained resource, but also one that has had significant
historical investment and exploration, including 23,000 m of
drilling over 72 holes, and numerous targets identified for future
exploration. Upon completion, we plan to commission a current
resource estimate for the Project as well as identify opportunities
for follow-up exploration and expansion."
The Agreement
Pursuant to the Agreement, GoldMining will acquire all of the
shares of a wholly-owned subsidiary of Lupaka, which will hold a
100% interest in the Project. Total consideration payable by
GoldMining to Lupaka under the transaction is 3,500,000 common
shares of GoldMining (the "GoldMining Shares") and
$750,000 in cash.
The GoldMining Shares to be issued under the transaction are
subject to certain resale restrictions pursuant to the terms of the
Agreement.
The transaction is subject to customary closing conditions,
including receipt of requisite third party and regulatory consents
and approvals. The parties currently expect closing to occur by the
end of September 2017.
The Project
The Project is located 150 km northeast of the city of Juliaca
in the Department of Puno, in southeastern Peru. The Project is road accessible by paved
road from Juliaca to the town of Crucero, with the remaining 50 km
to site by gravel road. High-power electrical lines pass within 8
km of the property.
The Project is comprised of three mining and five exploration
concessions with an aggregate area of 4,600 hectares. The
exploration concessions are renewable on an indefinite basis
through payment of annual fees to the Peruvian government. The
three mining concessions are held indirectly by Lupaka through a 30
year assignment from a third party running until 2038 and are
subject to certain royalty obligations.
Historic exploration programs have focused on the A1 deposit,
however geophysical and geochemical surveys have identified 10
additional targets (A2 to A11) for follow-up exploration. The A1
deposit, as currently defined by trenching and drilling, strikes
northwest and dips vertically to steeply to the northeast. The
deposit is approximately 750 m long by 100 m in width and has been
traced to a vertical depth of 400 m, but most of the drilling is
confined to within 250 m of surface. The deposit is open at depth
and along strike to the northwest and southeast. The orogenic gold
mineralization is associated with sulphide veins hosted within
strongly deformed metasedimentary rocks.
The A1 deposit was the subject of a resource estimate published
by Lupaka in 2013 (Table 1), which will be treated as a historic
estimate by GoldMining. The conceptual pit delineated resource was
based on 72 diamond drill holes (approximately 23,000 m) and is
reported within a conceptual pit shell. High-grade gold values were
capped at 17 g/t gold with 5 assays falling above this value.
Average bulk density of 2.85 g/cm3 was used to convert
block model volumes to tonnages.
Table 1: A1 deposit historical pit constrained resource estimate
published by Lupaka in 2013.
|
Cut-off
|
Tonnes &
Grade
|
Contained
Metal
|
Resource
Category
|
Au
(g/t)
|
Tonnes
(Mt)
|
Au
(g/t)
|
Au
(Moz)
|
Indicated
|
0.40
|
30.9
|
1.01
|
1.00
|
Inferred
|
0.40
|
31.2
|
1.03
|
1.03
|
The following parameters were utilized by Lupaka to establish
the conceptual pit:
Parameter
|
Value
|
Unit
|
Gold Price
|
1,400
|
US$/oz
|
Mine Operating Cost
(Mineralization and Waste)
|
1.50
|
US$/t
milled
|
Process Operating
Cost
|
13.00
|
US$/t
milled
|
General &
Administrative
|
2.00
|
US$/milled
|
Overall Pit
Slope
|
47
|
Degrees
|
Gold Process
Recovery
|
90
|
%
|
Mining
Dilution
|
5
|
%
|
Mining
Recovery
|
100
|
%
|
The above resource estimate is historical in nature and will not
be treated as a current resource estimate by the Company as a
qualified person has not done sufficient work on behalf of the
Company to classify the historical estimate as a current mineral
resource. However, the Company believes the historical estimate is
relevant to any future exploration and as an indication of the
potential of the property. The historical resource estimate for the
Project is based on a technical report completed for Lupaka by
Gregory Z. Mosher, M.Sc., P.Geo. of
Tetra Tech WEI Inc. and Anoush
Ebrahimi, P.Eng. of SRK Consulting (Canada) Inc. titled "Technical Report for the
Crucero Property, Carabaya Province, Peru" with an effective date of January 17, 2013 (amended and re-stated
October 22, 2013). No new
drilling or sampling has been completed on the A1 deposit since the
above resource estimate was completed. However, GoldMining intends
to engage an independent qualified person to, among other things,
examine the cut-off grade with reference to today's metal prices,
verify historic sampling and results and complete a technical
report, including a current resource estimate on behalf of the
Company.
Advisors
Haywood Securities Inc. has advised GoldMining in connection
with the transaction, and Sangra Moller LLP is acting as legal
counsel to GoldMining.
Qualified Person
Paulo Pereira, President of
GoldMining Inc. has reviewed and approved the technical information
contained in this news release. Mr. Pereira holds a Bachelors
degree in Geology from Universidade do Amazonas in Brazil, is a Qualified Person as defined in
National Instrument 43-101 and is a member of the Association of
Professional Geoscientists of Ontario.
About GoldMining Inc.
GoldMining Inc. is a public mineral exploration company focused
on the acquisition and development of gold projects in the
Americas. GoldMining is advancing its Titiribi and La Mina
Gold-Copper Projects located in the Department of Antioquia,
Colombia, its São Jorge and
Cachoeira Gold Projects located in the State of Pará, northeastern
Brazil, its Whistler Gold-Copper
Project located in the State of
Alaska, United States of
America, and its Rea Uranium Project in the western
Athabasca Basin in northeast
Alberta, Canada.
Forward-looking Statements
This document contains certain forward-looking statements
that reflect the current views and/or expectations of GoldMining
with respect to its business and future events, including
expectations respecting the Project, the completion of the proposed
acquisition of the Project and any future exploration programs and
other work on the Project. Forward-looking statements are based on
the then-current expectations, beliefs, assumptions, estimates and
forecasts about the business and the markets in which GoldMining
operates, including that the parties will satisfy or waive all
conditions required to complete the transactions under the
Agreement, including receipt of all third-party consents and
approvals, and that GoldMining will confirm historical exploration
results. Investors are cautioned that all forward-looking
statements involve risks and uncertainties, including: the inherent
risks involved in the exploration and development of mineral
properties, the uncertainties involved in interpreting drill
results and other exploration data, the potential for delays in
exploration or development activities, the geology, grade and
continuity of mineral deposits, the possibility that future
exploration, development or mining results will not be consistent
with GoldMiningꞌs expectations, accidents, equipment breakdowns,
title and permitting matters, labour disputes or other
unanticipated difficulties with or interruptions in operations,
fluctuating metal prices, unanticipated costs and expenses,
uncertainties relating to the availability and costs of financing
needed in the future, including to fund any exploration programs on
the Project, that the parties may not receive all consents and
approvals or satisfy all conditions required under the Agreement
and that GoldMining may not be able to confirm historical
exploration results or complete a current resource estimate for the
Project. These risks, as well as others, including those set forth
in GoldMiningꞌs filings with Canadian securities regulators, could
cause actual results and events to vary significantly. Accordingly,
readers should not place undue reliance on forward-looking
statements and information. There can be no assurance that
forward-looking information, or the material factors or assumptions
used to develop such forward looking information, will prove to be
accurate. GoldMining does not undertake any obligations to release
publicly any revisions for updating any voluntary forward-looking
statements, except as required by applicable securities
law.
Neither the TSX Venture Exchange, the Toronto Stock Exchange
nor their Regulation Services Providers (as that term is defined in
the policies of the TSX Venture Exchange and the Toronto Stock
Exchange) accepts responsibility for the adequacy or accuracy of
this news release.
SOURCE GoldMining Inc.