(via TheNewswire)
A JOINT VENTURE PARTNER WITH FUNDS TO HELP ADVANCE THIS
PROJECT WITH SEVERAL VMS-STYLE DEPOSITS – THAT ARE DRILL READY
TSX-V: FGC TSX-V: ALT
Copperlodeis strategically located 65 km east of
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Figure 1.Regional property location map and Trillium Gold claim groups.
JV LOI rationale
The Transaction benefits for both Frontline and Alturas shareholders are:
-Potential ongoing exploration of an
-Compelling Valuation for Alturas and Frontline Shareholders:The property to be by the JV comprises over 479 Ha in the Confederation Greenstone Belt which hosts the former South Bay Cu-Zn mine and several VMS-style occurrences and deposits and is adjacent to active mining and exploration properties;
-The cost of the property is significantly below current market value of similar projects.
-Alturas and Frontline Maintain Significant Exposure to Exploration Success:Not only on the Copperlode Property but related to success by others in the area,
-Preliminary evaluation of the Copperlode Property has revealed existing assessment reports including drilling which can be compiled to develop an exciting exploration program.
Summary of JV LOI Terms considered in the signed Letter of Intend
Alturas and Frontline will enter into a 50:50 Joint Venture Letter of Intent to acquire the joint venture interest and explore the Copperlode Property. A definitive agreement will be created in a form that is customary for transactions of this nature.
Alturas agrees to following initial payment terms to acquire a 50% interest in the Copperlode Property from Frontline:
i.A money cash payment of
C$40,000 ;ii.The issuance of 750,000 shares of Alturas, which is subject to receiving TSX-V exchange approval, for a deemed value of
C$37,500 ; andiii.The agreement to fund 50% of the
Orix Geoscience Inc. – Scope of Work – Copperlode Proposal (“Proposal”) entered into by Frontline, details of which were announced onJanuary 26 th, 2021 (seewww.frontlinegold.com/news). Orix will undertake and provide to the Company, a compilationof the approximately 82 drillholes that have been drilled on the Copperlode property.This compilation will allow for theinterpretation of assay data in a longitudinal section to provide preliminary drillhole target recommendations for the Companyas it prepares for an inaugural drilling program at Copperlode in the spring of 2021.
The JV LOI terms above are not an exhaustive description of the terms and conditions, the precise details of which will be set out in definitive documentation to executed at later date. The definitive documentation will include additional terms and conditions that are customary for this type of transaction.
Summary:
-The Property is strategically located 65 km east of
Red Lake and 45 km northeast ofEar Falls, Ontario . TheSouth Bay mine road and logging roads provide excellent access.-The claims are contained within the Confederation Greenstone Belt which hosts the former South Bay Cu-Zn mine (1.6Mt grading 2.3% Cu and 14.7% Zn) and several VMS-style occurrences and deposits (Figure 2).
-The Cycle III volcanic sequence of the Confederation Greenstone belt underlies the property and is the only volcanic cycle to host significant Cu-Zn deposits. Litho-geochemical sampling of altered volcanics indicates widespread Na-depletion and Mg-enrichment typical of VMS footwall hydrothermal alteration.
-The Copperlode Property contains 6 parallel en-echelon VMS horizons which have undergone very limited drilling. Of note is the Copperlode ‘E’ Zone with tonnage estimates of 300,000 tonnes grading 0.60% Cu, 4.36% Zn and 0.40 g/t Ag.
Cautionary Statement: The above tonnage estimates on the Copperlode ‘E’ Zone are historical in nature and non-compliant and have been taken from
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Figure 2. Regional geology of the Confederation greenstone belt with VMS-style deposits.
About
Alturas is a Canadian corporation, and is the indirect parent of the Peruvian company,
Qualified Person
About Frontline Gold Corporation
Frontline is a Canadian junior mineral exploration company. The Company's properties include the optioned gold projects in
Frontline continues to actively seek projects, and additional investor/partner(s) in order to continue to build upon its properties and net smelter return royalties.
Further information about the Company is available on the Company’s website,www.frontlinegold.com, or our social media sites listed below:
Facebook:https://www.facebook.com/Frontline Gold Corp./
Twitter:https://twitter.com/frontlinegold
Linkedin:https://www.linkedin.com/company/frontline-gold-corp-fgc-
This news release contains forward-looking statements, which address future events and conditions, which are subject to various risks and uncertainties. The Company’s actual results, programs and financial position could differ materially from those anticipated in such forward-looking statements as a result of numerous factors, some of which may be beyond the Company’s control. These factors include: the availability of funds; the timing and content of work programs; results of exploration activities and development of mineral properties, the interpretation of drilling results and other geological data, the uncertainties of resource and reserve estimations, receipt and security of mineral property titles; project cost overruns or unanticipated costs and expenses, fluctuations in metal prices; currency fluctuations; and general market and industry conditions.
Forward-looking statements are based on the expectations and opinions of the Company’s management on the date the statements are made. The assumptions used in the preparation of such statements, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements.
------------------------------------------------------------------------- |“Walter Henry” | |Contact: Walter Henry | | | |Phone: (416) 861-9090 | |Walter Henry , President&CEO| |Email: info@frontlinegold.com| |FRONTLINE GOLD CORP. | |Website: www.frontlinegold.com | | | |Frontline Gold Corp. (TSX-V: FGC) | | | |372 Bay Street, Suite 301 | | | |Toronto, Ontario M5H 2W9 | -------------------------------------------------------------------------
-------------------------------------------------------------- |ALTURAS MINERALS CORP. | |Contact: Mario Miranda | |“Miguel Cardozo” | |Phone: (416) 363-4900 | | | | | |Chief Executive Officer| |Alturas Minerals Corp. (TSX-V: ALT)| | | |372 Bay Street, Suite 301 | | | |Toronto, Ontario M5H 2W9 | --------------------------------------------------------------
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