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Noka Resources Inc (2)
Symbol NX
Shares Issued 40,811,321
Close 2017-03-14 C$ 0.09
Market Cap C$ 3,673,019
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Noka Resources options Birch Au project from Pelangio

2017-03-14 09:53 ET - News Release

Also News Release (C-PX) Pelangio Exploration Inc

Mr. Dominic Verdejo of Noka reports

NOKA RESOURCES SIGNS AGREEMENT TO ACQUIRE STRATEGIC HIGH GRADE GOLD PROPERTIES ADJACENT TO THE SPRINGPOLE GOLD DEPOSIT; HISTORICAL DRILL RESULTS ON NEW PROPERTIES INCLUDE 2.45 M GRADING 244.73 G/T GOLD

Noka Resources Inc. and Pelangio Exploration Inc. have entered into an option agreement, whereby Noka may acquire a 100-per-cent interest in Pelangio's Birch gold project. Noka has also entered into an option agreement to acquire 100 per cent of the Uchi gold project from 2522962 Ontario Inc. The combined land package totals 38 mineral claims and 2,352 hectares and is located contiguous to the Springpole deposit controlled by First Mining Finance.

Dominic Verdejo, president and chief executive officer of Noka, commented: "We are excited to have secured a strategic land position immediately adjacent to the Springpole gold deposit. The large land position totalling 2,352 hectares is situated in one of the richest gold belts in Western Ontario and has yielded significant high-grade gold intersections and contains geological similarities to other known gold occurrences in the area."

Pelangio high-grade birch gold project

The Birch gold project consists of 28 mineral claims (432 hectares), is located within the Birch-Uchi greenstone belt, approximately 120 kilometres northeast of the town of Red Lake, Ont., and has seen significant Red Lake-type high-grade gold intercepts by previous operators. Dome Exploration (Canada) Ltd. (later Placer Dome and then Goldcorp Inc.) and Trade Winds Ventures Inc. have completed the majority of the exploration work on the Birch gold project to date. Select historical drilling intercepts on the Birch gold project's main central zone are shown in the attached table.

Hole No.                   From         To   Interval       Gold
                             (m)        (m)        (m)      (g/t)

Placer Dome DDH 53       136.60     138.50       1.90      63.94   
Placer Dome DDH 78       174.45     176.45       2.00     105.30  
Placer Dome DDH 90       208.00     210.00       2.00      52.08   
Trade Winds DDH96        239.15     249.00       9.85      34.54   
Including                239.15     242.10       2.95     113.94  
Trade Winds DDH97        357.85     360.30       2.45     244.73  
Trade Winds DDH98        206.00     209.40       3.40       6.15    
Trade Winds DDH100       285.00     288.00       3.00       6.69    

Readers are cautioned that a qualified person (as defined by National Instrument 43-101) has not yet completed sufficient work to be able to verify the historical information, and, therefore, the information should not be relied upon. The potential quality and grade of this exploration target are conceptual in nature as there has been insufficient exploration to define a mineral resource and that it is uncertain if further exploration will result in the target being delineated as a mineral resource. Management also cautions that past results or discoveries on adjacent properties may not necessarily be indicative to the presence of mineralization on the company's properties.

Within an eight-kilometre radius of the Birch gold project, there is the large gold resource (Springpole deposit) and the historical Argosy gold mine, which produced 101,875 ounces of gold at an average grade of 0.37 ounce per ton (reference: Ontario Geological Survey open file report No. 5835). Mineralization on any adjacent property may not be representative of mineralization that may be identified on the company's property.

Initial exploration work on the Birch gold project by Placer Dome consisted of mapping, geophysical and geochemical surveys, along with diamond drill follow-up, resulting in the discovery of the 70-metre-wide, steeply dipping deformation corridor that yielded isolated high-grade gold intersections. Subsequently named the High Grade Island deformation zone, high-grade gold mineralization within this corridor is hosted by quartz-tourmaline-pyrite-arsenopyrite veins in the main central zone. Secondary gold mineralization associated with a folded banded iron formation (west zone), which is proximal to the deformation zone, has also been recorded.

Subsequent to Placer Dome's exploration, Trade Winds conducted two diamond drill programs to evaluate the main central zone between 200 metres and 400 metres below surface. The main central zone has been diamond drill tested along 350 metres of strike length with two mineralized shoots identified. Gaps in drill testing remain. The bulk of the drilling to date has been completed above 200 metres; however, Trade Winds' DDH97 hole (intercept) demonstrated that high-grade potential exists at depth. It is recommended that a program of deeper drilling and infill drilling between the known shoots be completed to fully evaluate the potential of the main central zone.

Geological mapping, drilling results and geophysical surveying suggest that the High Grade Island deformation zone and structure extends across High Grade Island for 1,800 metres. Further, induced polarization surveying suggests the deformation zone extends beyond the island for another 1,800 metres southeast. Approximately 3,250 metres of projected deformation zone remains to be evaluated (reference: Trade Winds, NI 43-101, February, 2005; and Mosquito Consolidated Gold Mines Ltd., December, 2002).

Uchi gold project

The Uchi gold project, made up of 10 mineral claims (1,920 hectares), was acquired in order to cover the prospective geology proximal to the High Grade Island deformation zone and the Springpole gold deposit. The Uchi gold project landholdings cover the interpreted strike extension and potential downdip extension of the High Grade Island deformation zone and is contiguous with the Springpole deposit's claims. The southwest extremity of the Uchi gold project is approximately 3,600 metres northeast of actual Springpole deposit.

In addition, the Uchi gold project also covers a very prospective gold-bearing iron formation with exposure over approximately 1,600 metres of strike length. There are numerous documented historical occurrences of high-grade gold mineralization within the iron formation that has had very limited state-of-the-art exploration. A typical iron-formation-hosted gold deposit in Northwestern Ontario is Goldcorp's Musselwhite mine, located approximately 200 kilometres to the northeast of Uchi gold project.

Acquisition terms for the Birch and Uchi gold projects

Noka has a right to earn a 100-per-cent interest in the Birch gold project by paying a total of $375,000 and issuing an aggregate of 4.5 million common shares over a four-year period to Pelangio. Noka must also incur exploration expenditures of $1.3-million over a four-year period. The Birch gold project is subject to a 2-per-cent net smelter return royalty held by Goldcorp.

Noka has a right to earn 100-per-cent interest in the Uchi gold project by paying a total of $75,000 and issuing an aggregate of 1.25 million common shares over a four-year period to 2522962 Ontario. 2522962 Ontario retains a 2.5-per-cent net smelter return royalty on the Uchi gold project, 1 per cent of which can be purchased by Noka by payment of $1-million within 180 days of the public announcement of a positive feasibility study.

The acquisition of both projects is subject to approval by the TSX Venture Exchange.

About Noka Resources Inc.

Noka Resources is focused on advancing exploration activity on the Birch and Uchi properties adjacent to the Springpole gold deposit (controlled by First Mining Finance) in the Red Lake gold district of Western Ontario and the Tully West property located northeast of Timmins, Ont.

This press release has been reviewed and approved by Peter Caldbick, PGeo. Mr. Caldbick is a qualified person for the purposes of NI 43-101. Mr. Caldbick has reviewed the verification process and believes it to be reliable.

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