06:13:13 EDT Tue 04 Oct 2022
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United Hunter completes Escala survey, report

2022-09-22 17:42 ET - News Release

Mr. Timothy Turner reports

UNITED HUNTER OIL & GAS CORP. PROVIDES AN UPDATE TO THE RECENTLY COMPLETED NI 43-101 REPORT AND THE PROPOSED AMALGAMATION WITH BOCANA RESOURCES LTD.

United Hunter Oil & Gas Corp. has provided an update on recently completed geophysical work and the subsequently updated technical report in accordance with National Instrument 43-101, along with an update on the status of the previously announced amalgamation agreement with Bocana Resources Ltd.

As a follow-up to the previous announcements earlier this summer, Bocana completed an induced polarization (IP) geophysical survey on the Escala project in southwest Bolivia. The Escala project consists of four concessions covering 4,000 hectares with known near-surface porphyry-style gold/silver and vein-hosted silver/lead/zinc. Historic IP surveys were limited in areal extent but did indicate the presence of extensive sulphide mineralization associated with an intrusive complex.

Bocana's IP survey entailed approximately 88 line kilometres, covered all known areas of mineralization, and determined the arial extent of the sulphide mineralization and spatial relationship of the various known zones to one other.

As a result of doing this work, the TSX Venture Exchange requested that Bocana update the technical report on the Escala project. The author, Greg Bronson, PGeo, with Rae-co Consulting Ltd., had the following highlights and conclusions incorporated in his report.

"The following interpretations are made based on the recently completed geophysical survey and detailed geological mapping that was completed in spring 2022. The interpretations of the geophysical data are based on raw data that has not been compiled.

"The induced polarization survey, raw data interpretation and conclusions are as follows.

"Chargeability survey results:

  • "Cerro Galapago area shows a roughly circular induced polarization, chargeability anomaly is approximately 1,600 metres by 1,700 metres in area. The size and shape of the chargeability anomaly suggest a large area of disseminated sulphide mineralization related to a porphyry system.
  • "Cerro Blanco area shows a chargeability anomaly over 1,600 m with a northwesterly trend and with a 100- to 200-metre width. In this area, the mineralization may be more structurally controlled by subvertical structures. Previous drilling programs did not properly evaluate these targets with mainly vertical drill holes.
  • "In the historical area of known silver base metal veins, a chargeability anomaly of 1,600 m trending northwest with a 400-metre width was identified. This subsurface anomaly is coincident with outcrops of base metal veins and indicates very good potential for the continuation of the vein system to depth.

"Resistivity survey results:

  • "The Cerro Galapago area shows low-resistivity values around a central core surrounded by moderate to high resistivities bordering around the low resistivity central core.
  • "The Cerro Blanco area hosts an 800-metre trend of moderate to high resistivities coincident with the 1,600-metre chargeability anomaly described above.
  • "The centre of the historical base metal/silver area shows a 1,600-metre-diameter moderate- to high-resistivity anomaly.

"Ground magnetic survey results

"A ground magnetic survey was also conducted as part of the geophysical survey. As Bocana only has access to the raw field data at the time of writing, it is unknown if the ground magnetic survey represents total magnetism or has been filtered to only display the vertical component of the magnetic field. A large-scale magnetic high has a trend through the survey area at approximately 330 degrees in azimuth.

"Geological mapping results

"Recent geological mapping completed in spring 2022 shows similar lithologies as previous workers on the property. These latest mapping efforts show a radial facture pattern surrounding the potential Cerro Galapago porphyry system."

Tim Turner, a director of Bocana, commented: "The geophysical data we have collected to date on our Escala concessions supports the theory of a large, disseminated sulphide system of approximately to 2.5 kilometres by 2.5 kilometres centred on an intermediate to felsic, porphyritic intrusion. Once all data has been compiled, the company is planning to drill test this and several other comparable geophysical anomalies coincident with the porphyritic intrusions."

Bocana and United Hunter have submitted the technical report and other supplemental documents for the proposed transaction to the exchange for its review and approval. The TSX Venture Exchange has since reviewed the technical report to determine whether it would meet Tier 2 initial listing requirements (ILR), and, at the date of its review, Sept. 19, 2022, the report does demonstrate that this property meets Tier 2 ILR.

Additionally, the TSX-V will provide comments, if any, on the remaining materials for its review back to the parties for their consideration prior to its conditional approval and consent to move forward with the joint annual and special meeting of the shareholders of both parties. Once that occurs, the parties will be filing the joint information circular on SEDAR, which will contain details regarding the transaction, United Hunter, Bocana and the resulting issuer.

Completion of the proposed transaction is subject to a number of conditions precedent, including, but not limited to: (i) shareholder approval from both Bocana and United Hunter shareholders; and (ii) acceptance by the exchange and receipt of other applicable regulatory approvals. There can be no assurance that the transaction will be completed as proposed or at all.

Qualified persons

Greg Bronson, PGeo, is a qualified person, as defined by National Instrument 43-101, and is the author of the technical report, and Lorne Warner, PGeo, of Bocana, and Mr. Bronson both have reviewed and approved the scientific and technical disclosure in this news release.

We seek Safe Harbor.

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