Golden Reign Resources Ltd. (the “Company” or “Golden Reign”)(TSX-V:GRR.V - News) is pleased to announce that it has entered into a binding Letter of Intent (“LOI”) with Marlin Gold Mining Ltd. (“Marlin”)(TSX-V:MLN.V - News) for a US$15.0 million gold streaming arrangement at its San Albino Gold Deposit and surrounding area, located in Nueva Segovia, Nicaragua.
- Marlin will provide US$15.0 million (the “Purchase Price”) to be used for construction and development at the San Albino Gold Deposit and surrounding area. The designated area comprises a total of 3.5 square kilometres
- Marlin’s wholly-owned subsidiary, Sailfish, will be entitled to purchase 40% of gold production at US$700 per troy ounce1 until an amount of US$19.6 million2 is recovered by Sailfish, and 20% of gold production at US$700 per troy ounce3 thereafter
- Prior to commercial production Sailfish will be entitled to receive an 8% semi-annual coupon payment on the Purchase Price
Subject to a 1% per year cost escalation beginning three years from commercial production.
Golden Reign will be required to make minimum monthly payments of US$282,800 per month when commercial production commences.
Subject to a 1% per year cost escalation beginning three years from commercial production, plus 50% of the price differential above US$1,200 per troy ounce subject to certain adjustments.
“We are extremely pleased to announce the signing of the LOI with Marlin. Marlin shares our vision for the continued expedited advancement of our high-grade San Albino gold asset in Nicaragua. The San Albino Deposit has been the Company’s priority focus for the past four years. Covering a 3.5 square kilometre area within the Company’s highly prospective 138 square kilometre landholdings, it will be the first target moved towards production. Once operations are successfully established, the Company anticipates that cash flows will enable it to progress exploration targets at Las Conchitas, Murra and the El Jicaro Concession, with the strategy of adding significant value to the Company while minimizing dilution to our shareholders. We look forward and are excited to be transitioning from an explorer to producer”, commented Kim Evans, President and Chief Executive Officer of Golden Reign.
Summary of Gold Stream Arrangement
For a purchase price of US$15.0 million Marlin’s wholly-owned subsidiary, Sailfish Royalty Corp. (“Sailfish”) will be entitled to purchase 40% of gold production from the San Albino Gold Deposit and surrounding area, comprising a total 3.5 square kilometres, at US$700 per troy ounce1 until Sailfish recovers US$19.6 million2. Thereafter, Sailfish will be entitled to purchase 20% of gold production at US$700 per troy ounce3. Prior to commercial production, Sailfish will be entitled to receive an 8% semi-annual coupon payment on the purchase price from Golden Reign.
Closing of the transaction is subject to the completion of due diligence, including geological, geotechnical and metallurgical review, by Marlin and the execution of definitive agreements.
Sonoran Resources, LLC (“Sonoran”) will be the nominated engineering, procurement and construction management (“EPCM”) firm that will be responsible for permitting and building the San Albino project. Marlin and Golden Reign shall jointly oversee Sonoran’s activities. Sonoran has the technical expertise and significant experience in building small scale assets in the Americas cheaply and efficiently. Additionally, Sonoran is one of the few engineering firms that have senior engineers with direct operating experience in Nicaragua.
Upon closing of the transaction, John Brownlie (CEO and Director of Marlin) and Akiba Leisman (Director of Marlin) will each be appointed to the Board of Directors of Golden Reign.
Marlin $3.2 Million Equity Investment
Concurrent with the closing of the transaction, Marlin will take a 19.9% interest in Golden Reign by purchasing 21.3 million common shares for approximately $3.2 million, subject to regulatory approvals.
Marlin Gold Mining Ltd., a publicly listed company on the TSX Venture Exchange, has significant experience at a board and management level in developing profitable gold mines in Mexico and throughout the Americas. Production at its La Trinidad property, an open-pit heap-leach gold project located in Sinaloa, Mexico, is expected to commence within a few days.
Sailfish is a newly created wholly-owned subsidiary of Marlin to be domiciled in the British Virgin Islands. It is anticipated that Sailfish’s shares will eventually be distributed to Marlin shareholders, with Sailfish becoming a separate publicly traded entity. Sailfish will initially be populated with a gold stream entitling it to purchase 25% of the gold production from La Trinidad over the next 40 years. Golden Reign’s San Albino project will be Sailfish’s second gold streaming asset.
Funds managed by Wexford Capital LP are the majority shareholders of Marlin.
On behalf of the Board,
Kim Evans, CGA
President & CEO
Neither the 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 news release.
Forward-Looking Statements: Some of the statements contained herein may be forward-looking statements which involve known and unknown risks and uncertainties. Such forward-looking statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ materially from those reflected in the forward-looking statements, including, without limitation, risks and uncertainties relating to political risks involving the Company’s exploration and development of mineral properties interests, the inherent uncertainty of cost estimates and the potential for unexpected costs and expenses, commodity price fluctuations, the inability or failure to obtain adequate financing on a timely basis and other risks and uncertainties. Such information contained herein represents management’s best judgment as of the date hereof, based on information currently available.
NexGen Drills 26.2 meters of Highly Anomalous Radioactivity on First Hole at Arrow, Rook I, SW Athabasca Basin
NexGen Drills 26.2 meters of Highly Anomalous Radioactivity on First Hole at Arrow, Rook I, SW Athabasca Basin
- Significant Uranium Mineralisation discovered named “Arrow” Prospect, 4.5kms north of the southern boundary of Rook I
- RK-14-21 at Arrow is the first drill hole in Target Area “C” and still continuing
- Revising and expanding 6,000m drill program to aggressively follow up on Arrow
The first hole at Arrow, RK-14-21, is still being drilled. From 204.8-231.0m downhole, it has intersected 26.2m of sheared graphitic and garnetiferous breccia, with localized haematite-carbonate-graphite-chlorite alteration, set within a chloritised garnetiferous gneiss. The breccia contains zones of pitchblende disseminations & veinlets with downhole widths varying between 0.2-2.9m. Two zones of massive chloritic clay were intersected, 3.3m between 98.0-101.2m, and 3.0m between 108.0-111.0m. At 318.5m downhole, a 2cm pitchblende vein occurs centrally within a 50cm zone of intense haematite alteration. The balance of the hole logged to date (322.0m as at Mon 17 Feb) comprises medium/coarse-grained garnetiferous quartz-feldspar gneiss, with localized shearing.
A number of significant radioactive zones have been measured using a hand-held Exploranium GR-110 total count scintillometer (see Table). Currently, NexGen defines “significant” as a minimum of 5cm >500 cps (counts per second). The hole has not yet been probed radiometrically downhole, as it is still being drilled. All core to hand has been scanned by GR-110 scintillometer and detailed scintillometer radiometrics are available only to 321.75m downhole (Table 2). All radiometric anomalies have been scanned with an Exploranium GR-135 spectrometer, and this has confirmed that all radiometric activity is due to uranium (with minimal or no thorium input).
Andrew Browne, NexGen’s Vice-President, Exploration and Development, commented “The Arrow prospect represents a totally new zone of uranium mineralisation in the SW Athabasca Basin, completely unrelated to any other known occurrence in the region. Its discovery demonstrates the commitment and geoscientific expertise of NexGen’s technical team of employees and consultants.”
Leigh Curyer, NexGen’s CEO, commented “Arrow is the result of the disciplined focus and approach of Andrew and the NexGen technical team. I congratulate them on a terrific result at such an early stage in the exploration program. We are immediately revising our original 6000m program in terms of drilling logistics in order to substantially expand the program at Arrow and the other 11 western located Rook I target areas. The result indicates the potential of this south-western section of the Athabasca Basin in becoming a new prolific uranium district.”
At Area A, hole RK-13-05 had a downhole intercept between 220.5-224.5m of 4.0m @ 330 ppm U3O8 (press release of 9 January 2014).
Five holes have been completed for a better understanding of the uranium previously intersected at Area A (holes RK-14-14, -15, -16, -18, and -19). All five confirmed the presence of the brecciated shear zone with localized anomalous radioactivity, although levels were of apparent lower values than from the summer drill program. Samples are being selected for check chemical analysis.
As noted in the press release of 20 January 2014, further drilling is being targeted towards a number of new anomalous areas generated internally by a detailed interpretation of all available public and NexGen data. Two of these new target areas have been designated Arrow and Dagger. Three drill holes have been completed at Dagger, whilst RK-14-21 is continuing at Arrow.
Two of the holes at Dagger, RK-14-20 and -22, intersected brecciated graphitic sheared gneissic material with localized small zones of alteration and anomalous radioactivity.
Of the twelve separately identified target areas in this western section of Rook I, only three have been drilled to date, A, C and D. All three have uranium mineralisation.
Natural gamma radiation in drill core that is reported in this news release was measured in counts per second (cps) using ahandheld Exploranium GR-110 total count gamma-ray scintillometer. The reader is cautioned that scintillometer readings are not directly or uniformly related to uranium grades of the rock sample measured, and should be used only as a preliminary indication of the presence of radioactive materials. All intersections are down-hole; core interval measurements and true thickness is yet to be determined.
Andrew Browne, FAusIMM(CP), NexGen’s Vice President, Exploration & Development, is a “qualified person” for the purposes of National Instrument 43-101 – Standards of Disclosure for Mineral Projects, and has reviewed and approved the contents of this news release.
NexGen is a British Columbia corporation with a focus on the acquisition, exploration and development of Canadian uranium projects. NexGen has a highly experienced team of exploration professionals with a track record in the discovery of unconformity-style uranium deposits in Canada.
NexGen owns a portfolio of highly prospective uranium exploration assets in the Athabasca Basin, Saskatchewan, Canada, including, an option to earn a 70% interest in the Radio Project, immediately adjacent to Rio Tinto’s Roughrider Deposit and a 100% interest in Rook 1, immediately adjacent to the north east of Patterson Lake South.
The TSXV has neither approved nor disapproved the contents of this press release. Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.
This news release contains “forward-looking information” within the meaning of applicable Canadian securities laws. Generally, but not always, forward looking information is identifiable by the use of words such as “will” and planned” and similar expressions. Forward-looking information is based on the then current expectations, beliefs, assumptions, estimates and forecasts about the Company’s business and the industry and markets in which it operates. Such information is not a guarantee of future performance and undue reliance should not be placed on forward-looking information. Assumptions and factors underlying the Company’s expectations regarding forward-looking information contained herein include, among others: that general business and economic conditions will not change in a material adverse manner; that financing will be available if and when needed on reasonable terms; that the Company’s current exploration activities can be achieved and that its other corporate activities will proceed as expected; that third party contractors, equipment and supplies and governmental and other approvals required to conduct the Company’s planned exploration activities will be available on reasonable terms and in a timely manner. Further, mineralization on properties held by third parties adjacent to NexGen’s properties (including Patterson Lake South) are not necessarily indicative of mineralization on NexGen’s properties.
Although the assumptions made by the Company in providing forward looking information are considered reasonable by management at the time the forward-looking information is given, there can be no assurance that such assumptions will prove to be accurate. Forward-looking information also involves known and unknown risks and uncertainties and other factors, which may cause actual events or results in future periods to differ materially from any projections of future events or results expressed or implied by such forward-looking information, including, among others: risks related to the availability of financing on commercially reasonable terms and the expected use of the proceeds; changes in the market; potential downturns in economic conditions; industry conditions; actual results of exploration activities being different than anticipated; changes in exploration programs based upon results of exploration; future prices of metal; availability of third party contractors; availability of equipment and supplies; failure of equipment to operate as anticipated; accidents, effects of weather and other natural phenomena and other risks associated with the mineral exploration industry; environmental risks; changes in laws and regulations; community relations; and delays in obtaining governmental or other approvals or financing. 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, estimated or intended. NexGen undertakes no obligation to update or reissue forward-looking information as a result of new information or events except as required by applicable securities laws. The reader is cautioned not to place undue reliance on forward-looking information.
SASKATOON, SASKATCHEWAN –AZINCOURT URANIUM INC. (“Azincourt” or “the Company“); (TSX VENTURE:AAZ), and its joint venture partner and operator, Fission 3.0 (“Fission 3.0″); (TSX VENTURE:FUU), are pleased to announce that a $1.0M, 8 to 10 drillhole winter diamond drilling, radon survey and ground geophysical program, focusing on high priority targets, has commenced at their PLN Property. A Radon in Water survey, using the same frozen ice conditions approach used successfully at Fission Uranium Corp’s adjacent Patterson Lake South (PLS) project, is included in the program and will assist in refining drill target locations over Hodge Lake, Harrison Lake and Broach Lake target areas.
– 8 – 10 high priority drill targets planned in 2500m – 3000m of drilling
– Drill holes to test following areas:
– North-northwest trending central conductive meta-sedimentary belt
– Geophysical anomalies under Hodge Lake
– Prospective north-northwest trending conductor
– A radon in lake water survey to measure radon covering 3 areas in 400 samples. The survey will comprise primarily samples of measurements of radon in water at Hodge Lake, Harrison Lake and Broach Lake
– Ground TDEM on the Broach Lake and Regional Side Line Moving Loop EM.
Ted O’Connor, President and CEO of Azincourt, commented,
“We are excited to start the 2014 winter drill program as follow up to the successful target development and prioritization work already completed. PLN has favourable geology, similar to the nearby Patterson Lake South discovery and the additional targeting surveys planned for the project will use the same techniques proven effective by Fission Uranium at PLS. The highly capable Fission 3.0 technical team and contractors carrying out the project work have proven success and Azincourt looks forward to working closely with our JV Partner to advance the project.”
Bryson Drilling has been awarded the contract to drill 8 to 10 diamond drill core holes in 2500 – 3000m. All holes are based on geophysics targets. Three main areas will be tested:
– North-northwest trending central conductive meta-sedimentary belt
– Geophysical anomalies under Hodge Lake in the southern project area
– Prospective north-northwest trending conductor in central/southern PLN
Initial targets will focus on the northwest-southeast (NW-SE) trending A1, A1B and A3 basement EM conductors located in the west-central area of the property. In addition drill targets along the B basement EM conductor located in the central area of the project area will be tested. Eight drill targets so far selected consist of:
– Five drill holes to test the north-northwest trending central conductive meta-sedimentary belt.
– Three high priority drill targets (PLN14-A, B and C) have been selected on the NW-SE trending A1 EM conductor
– One high priority drill target (PLN14-D) has been selected on the NW-SE trending A1B conductor in association with an interpreted NE trending structure. The A1B conductor is interpreted to be a faulted-off segment of the A1 conductor
– One high priority drill target (PLN14-E) has been selected on the NW-SE trending A3 conductor. The hole targets an interpreted cross- fault at its southern extent.
– Two drill holes (PLN14-F and PLN 14-G) will test the geophysical anomalies on Grid B under Hodge Lake. The drill holes on this grid will test the interpreted limbs of a suspected folded graphitic politic geological unit (interpreted syncline) where they are cross cut by interpreted structures with associated alteration. These are both areas where historic drilling intersected anomalous basement alteration and pathfinder geochemistry. The ground geophysics was completed on those grids last year. MLTDEM and DC Resistivity was completed on Grid B and
MLTDEM on Grid G4.
– Radon survey sampling will be carried out over the Grid B on Hodge Lake in the central part of the property to further refine drill locations
– Drill hole PLN 14-H will test the prospective north-northwest trending conductor that will be defined by the planned ground EM survey (20 km grid).
– The Fission team plans to “pre-collar” the drill holes with an RC drill, similar to its successful practice at the Patterson Lake South project
immediately to the south.
An EIC (Electret Ionization Chamber) survey to measure radon, will be conducted by RadonEx Exploration Management, of St Lazare, Quebec. The survey will comprise primarily samples of measurements of radon in water and at various locations, radon in water and lake sediment. The survey will be used to help refine drill targets in the various high priority areas.
Hodge Lake is located in the south-central part of the property. Approximately 150 samples will be taken from a grid at 20m station on 60m to 100m line spacing covering two parallel NNE trending EM conductors, each 1.0km in length.
Harrison Lake is located in the west-central part of the property. This area is host to multiple parallel southwest trending EM conductors. Approximately 100 samples will be taken from a grid at 20m stations on 60m line spacing.
Broach Lake is located in the south-east part of the property. Approximately 150 samples will be taken dependent first on the results of the ground moving loop electromagnetic (EM) survey yet to be completed.
Ground Geophysics (Time Domain Electromagnetic (TDEM) Surveys)
Discovery Geophysics has been contracted to complete 65 line-km of Time Domain Electromagnetic (TDEM) surveys on 3 separate grids:
1. A4 Extension- Located to the north-east of the A1 EM conductor. A 15.0 line-km survey will be completed to follow-up an approximately 2km long, northwest – southeast trending conductor trend.
2. Broach Lake – Located in the southwest side of the property. A 33.0 line-km survey covering is expected to commence later in January.
3. Regional Side – located in the north area of the property, where a recently completed Magnetotellurics survey identified a series of west dipping basement EM conductors. 17.0 line-km of moving loop will cover this area and is expected to commence later in January.
Patterson Lake North Property
The Patterson Lake North property (PLN) lies adjacent and to the north of the Patterson Lake South property, owned by Fission Uranium Corp. (TSX VENTURE:FCU) where recent drill results have identified high grade uranium in 6 separate pods. (See Fission Uranium news release November 27, 2013.)
PLN was acquired by staking in 2004 and became part of the Fission 3.0 portfolio as part of the Fission Uranium/Alpha Minerals agreement from December 2013. It comprises 27,408 Ha, and is located about 30 km immediately south of the UEX/AREVA Anne and Collette uranium deposits at Shea Creek.
PLN is prospective for hosting structurally controlled high-grade unconformity uranium mineralization that is often associated with basement graphitic shear zones within clay altered metasedimentary basement lithologies. These features have unique characteristics that can be identified by geophysical surveys.
Azincourt has a staged, four year option agreement with Fission 3.0 dated April 29, 2013 whereby Azincourt can earn up to a 50% interest in the PLN project through a combination of option payments and exploration work funding. Approximately $4.7 million has been spent on prior exploration of the property by Fission Uranium. Fission 3.0 is the operator and project manager.
The technical information in this news release has been prepared in accordance with the Canadian regulatory requirements set out in National Instrument 43-101 and reviewed on behalf of the company by Ted O’Connor, P.Geo. President and CEO of Azincourt Uranium Corp., a qualified person.
About Azincourt Uranium Inc.
Azincourt Uranium Inc. is a Canadian based resource company specializing in the strategic acquisition, exploration and development of uranium properties and is headquartered in Vancouver, British Columbia. Azincourt has advanced exploration projects and compliant uranium resources in Peru and the PLN exploration project in Saskatchewan.
Common Shares are listed on the TSX Venture Exchange under the symbol “AAZ”.
ON BEHALF OF THE BOARD OF AZINCOURT URANIUM INC.
Ted O’Connor, CEO and President
NEITHER THE 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 includes “forward-looking statements”, including forecasts, estimates, expectations and objectives for future operations that are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of Azincourt. Investors are cautioned that any such statements are not guarantees of future performance and that actual results or developments may differ materially from those projected in the forward-looking statements. Such forward-looking information represents management’s best judgment based on information currently available. No forward-looking statement can be guaranteed and actual future results may vary materially.
Azincourt Uranium Inc.
604 662 4955