06:00:15 EDT Fri 31 Mar 2023
Enter Symbol
or Name

Gold Terra Resource Corp
Symbol YGT
Shares Issued 196,471,494
Close 2022-09-06 C$ 0.145
Recent Sedar Documents

Gold Terra's Con indicated resource at 109,000 oz Au

2022-09-07 13:24 ET - News Release

Mr. Gerald Panneton reports


Gold Terra Resource Corp. has released the initial mineral resource estimate (MRE) on the Con mine property, which is under option from subsidiaries of Newmont Corp. and acquirable by the company upon fulfilment of certain conditions set out in the option agreement and located adjacent to the company's 100-per-cent-owned Yellowknife City gold project in the Northwest Territories.

The Company's initial MRE on the Con Mine option Property is comprised of an underground mineral resource of 109,000 gold ounces in the Indicated category and 432,000 ounces of gold in the Inferred category (see Table below). In addition, the Company has 1.2 Moz inferred resources (see March 31, 2021 Technical Report) on their adjacent 100% owned YCG property. This extensive land package is close to the City of Yellowknife with all its extensive existing infrastructure.

Mineral Resource Estimate Highlights

Con Mine Option Property initial MRE:Underground Indicated Mineral Resource of 0.45million tonnes averaging 7.55 g/t for 109,000 ounces of contained goldUnderground Inferred Mineral Resource of 2.0 million tonnes averaging 6.74 g/t for 432,000 ounces of contained gold

Chairman and CEO, Gerald Panneton, commented, "This initial mineral resource estimate (MRE) on the Con Mine Option Property represents a measuring stick of our progress toward satisfying one of the requirements of the option agreement with Newmont, namely delineating a potential of a minimum of 1.5 million ounces of gold in all categories. This initial MRE confirms the significant high-grade potential of this project as it remains open for further expansion in all directions, and along its 6-kilometre-long structure. The Con Mine produced more than 5 million ounces of high-grade gold (16 g/t Au) from the Campbell Shear structure on 2 kilometres of strike length alone. We strongly believe that additional drilling along strike and at depth will continue to expand the current MRE, as all the surface drilling so far has been very successful. The Company has spent approximately $6.2 million for an approximate cost of $12 per ounce of gold to date."

Mr. Panneton further commented, "We look forward to continuing our drilling program on the Campbell Shear with the goal of advancing the project towards an economic study and bringing further value to our shareholders by discovering more multi-million ounces deposits on our projects."

Mineral Resource Estimate

This initial Con Mine Option Property MRE incorporates a total of 41 diamond drill holes totaling 21,019 metres, completed by Gold Terra from September 2020 to June 2022 and all existing historic holes drilled before 2003, as interpreted by Gold Terra. The Yellorex Indicated resource was drilled on 25 to 50-metre spacing, between surface and 300 metres, and remains open at depth.

This MRE on the Con Mine Option Property demonstrates the success and progress of Gold Terra's recent drilling programs toward satisfying the minimum 1.5 million ounces of gold requirement in all resource categories, under the option agreement with subsidiaries of Newmont Corporation (see details below under Option to Acquire the Con Mine Property).

The table below shows the MRE for the Con Mine Option Property and the Company's adjacent YCG Project, which was reported in the March 16, 2021 news release and subsequent Technical Report dated March 31, 2021. The Company has not updated the YCG MRE with the positive results from the 2022 winter drilling program of 6,011 metres in the Mispickel area, part of the Northbelt block. More drilling is required on these multiple high-grade mineralized structures located only 20 kilometres north of the City of Yellowknife.

The MRE on the Con Mine Option Property includes three gold deposits - Yellorex Main, Yellorex North, and Kam Point (Figures 1 and 2). The MRE on the YCG Project includes four gold deposits - Sam Otto, Mispickel, Crestaurum and Barney (Figure 1).Figure 1 - Location of Con Mine Option Property and Part of the YCG ProjectFigure 2 - Location of the Gold Deposits on Con Mine Option Property

Potential to Increase Mineral Resources on the Con Mine Option Property

The Yellowknife gold camp was developed along the Campbell Shear, a significant structure on the belt and host to the Giant and Con gold mines which produced a combined 14 million ounces of gold. The Company's strategy is to continue drilling on the Campbell Shear at depth and south of the Con Mine to further increase the mineral resources. The exploration potential along the Campbell Shear south of the Con Mine is shown in Figure 3.

The Company is planning a winter 2023 drilling program which will include testing all zones mentioned in the initial MRE at depth and along strike, south of the Mine. If budget permits, the Company also will be testing the Campbell shear at depth of up to 2000 metres below surface.Figure 3 - Campbell Shear Exploration Potential of the Con Mine Property

SGS used Geovia Gems software to construct mineralized wireframes for each zone and then interpolated tonnage and grade into block models constrained by the mineralized wireframes and used inverse distance squared (ID2) or inverse distance cubed (ID3) interpolation. Appropriate interpolation parameters were generated for each deposit based on the mineralization style and geometry.

Option to Acquire the Con Mine Property (Con Mine Option Property)

Gold Terra entered into a definitive option agreement (the "Option Agreement") with Newmont Canada FN Holdings ULC ("Newmont FN") and Miramar Northern Mining Ltd. ("MNML"), both wholly owned subsidiaries of Newmont Corporation, which grants Gold Terra the option, upon meeting certain minimum requirements, to purchase MNML from Newmont FN (the "Transaction"), which includes 100% of all the assets, mineral leases, Crown mineral claims, and surface rights comprising the Con Mine, as well as the areas immediately adjacent to the Con Mine, as shown in Exhibit A (the "Con Mine Option Property" (see November 22, 2021 news release).

Under the Option Agreement, Gold Terra has agreed to incur a minimum of $8.0 million in exploration expenditures over a period of four (4) years, which will include all exploration expenditures incurred to date under the initial Exploration Agreement. Gold Terra has also agreed to complete a mineral resource estimate containing a minimum of 1.5 million ounces in all categories, consisting of a minimum of 40% of a measured and indicated resource and not more than a 60% inferred resource; obtain all necessary regulatory approvals for the purchase and transfer of MNML's assets and liabilities to Gold Terra; and post a cash bond to reflect the status of the Con Mine reclamation plan at the time of closing. The closing of the Transaction will then be completed with Gold Terra making a final cash payment of $8.0 million.

NI 43-101 Technical Report

A NI 43-101 Technical Report disclosing the MRE for the Con Mine Option Property will be filed on SEDAR (www.sedar.com) within 45 days.

Qualified Persons

The MRE for Con Mine Option Property and YCG Project was prepared by Dr. Allan Armitage, P.Geo. from SGS, an Independent Qualified Person as defined under NI 43-101.

Dr. Allan Armitage and Joe Campbell, P. Geo., Chief Operating Officerfor Gold Terra, a Qualified Person within the meaning of NI 43-101, have reviewed and approved the technical information contained in this news release.

Technical Information and Quality Control Procedures

Gold Terra's drilling programs are monitored through the implementation of a quality assurance and quality control (QA/QC) program. The drill core (NQ size) is logged and sample intervals for assay are selected by Gold Terra's geologists. In general, the sampling intervals vary from half-a-metre to one-metre in length depending on the geology and mineralization observed. The drill core samples are cut by diamond saw at Gold Terra's core facilities in Yellowknife. Half of the core sample is left in the core box and stored in a dedicated core storage facility in Yellowknife. The other half-core samples are transported in securely sealed bags by Gold Terra personnel to ALS Limited ("ALS") preparation laboratory in Yellowknife. After sample preparation, samples are shipped to ALS Vancouver facility for gold and a complete digestion four acid ICP analysis for 33 elements. Gold assays of >3 g/t are re-assayed on a 30-gram split by fire assay with a gravimetric finish. ALS is a certified and accredited laboratory service operating to ISO 17025 standards. ALS routinely inserts certified gold standards, blanks and pulp duplicates, and results of all QC samples are reported. Gold Terra inserts certified standards and blanks into the sample stream as a check on laboratory QC.

In addition to traditional assay methods, Gold Terra also carries out a variety of spectrometry tests on selected core and rock samples to determine the associated mineral characterization and the gold deportment within the mineralized zones.

About Gold Terra

The YCG project encompasses 800 sq. km of contiguous land immediately north, south and east of the City of Yellowknife in the Northwest Territories. Through a series of acquisitions, Gold Terra controls one of the six major high-grade gold camps in Canada. Being within 10 kilometers of the City of Yellowknife, the YCG is close to vital infrastructure, including all-season roads, air transportation, service providers, hydro-electric power, and skilled tradespeople. Gold Terra is currently focusing its drilling on the prolific Campbell shear, where 14 Moz of gold has been produced, and most recently on the Con Mine Option claims immediately south of the past producing Con Mine (1938-2003).

The YCG lies on the prolific Yellowknife greenstone belt, covering nearly 70 kilometers of strike length along the main mineralized shear system that host the former-producing high-grade Con and Giant gold mines. The Company's exploration programs have successfully identified significant zones of gold mineralization and multiple targets that remain to be tested which reinforces the Company's objective of re-establishing Yellowknife as one of the premier gold mining districts in Canada.

We seek Safe Harbor.

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