Mr. Garnet Dawson reports
GOLDMINING TO ACQUIRE YARUMALITO GOLD PROJECT IN COLOMBIA
Goldmining Inc. has entered into an agreement with Newrange Gold Corp. to indirectly acquire a 100-per-cent interest of the Yarumalito gold project located in central Colombia.
Amir Adnani, chairman of Goldmining, commented: "With our third acquisition in the Mid-Cauca belt, we continue to consolidate a district-scale property package, which we believe will provide optionality through future exploration, joint venture or cash-generating transactions."
Garnet Dawson, chief executive officer of Goldmining, commented: "Our team believes the Mid-Cauca belt of Colombia is one of the more underexplored gold-copper belts in the world. Yarumalito has seen significant exploration by Newrange and senior mining company partners, including 18,540 metres of drilling in 55 holes, metallurgical testwork, and historic small-scale underground development and production by the original owner. Upon closing, we plan to commission an updated technical report for the project as well as identify opportunities for follow-up exploration.
Pursuant to the agreement, a wholly owned subsidiary of Goldmining will acquire the Yarumalito project and related assets from a wholly owned subsidiary of Newrange. Total consideration payable by Goldmining to Newrange under the transaction will be: (i) $1.2-million, payable in common shares of Goldmining; and (ii) $200,000, payable in cash, of which, $25,000 has been advanced as a deposit. The issue price of the share consideration will be based on the volume-weighted average price of the Goldmining shares on the Toronto Stock Exchange for the five trading days prior to closing.
Newrange will retain a 1-per-cent net-smelter-returns royalty, which can be purchased by Goldmining at any time before the completion of a feasibility study on the project for total consideration of $1-million.
The Goldmining shares to be issued under the transaction are subject to a four-month-and-one-day hold period and certain additional resale restrictions pursuant to the terms of the agreement.
The transaction is subject to customary closing conditions, including receipt of requisite third party and regulatory consents and approvals. The parties currently expect closing to occur by Dec. 2, 2019.
Yarumalito is located approximately 75 kilometres southwest of the city of Medellin in the Department of Antioquia in central Colombia and approximately 40 km south of Goldmining's La Mina project. The project comprises one concession for a total area of approximately 1,453 hectares. Nearby projects include Anglogold Ashanti Ltd.'s advance-stage Nuevo Chaquiro copper-gold project and Gran Colombia Gold Corp.'s Marmato gold mine. The project is accessible by paved road with nearby high-capacity power lines, water and labour.
The project is largely underlain by volcano-sedimentary rocks of the Miocene Combia formation and comagmatic intrusive bodies of intermediate composition. Gold-copper porphyry stockwork mineralization is spatially related to the intrusive bodies with younger, intermediate sulphidation epithermal veins crosscutting the porphyry mineralization. The epithermal veins commonly trend northwest and have steep to subvertical dips to the southwest.
Newrange has disclosed that exploration programs by Newrange and its senior mining company partners from 2008 to 2013 outlined several geophysical and geochemical anomalies across the property including the Obispo, La Suiza, Balastreras, Escuela, El Guaico and El Sucre targets. Diamond drill programs (18,540 m in 55 holes) during that period primarily focused on the Balastreras-Escuela mineralization, which has a surface projection of approximately 1,700 m by 400 m and is intersected in drill holes and underground workings to a depth of 600 m.
SELECTED HISTORIC DRILL INTERSECTIONS FROM THE BALASTRERAS-ESCUELA TARGETS
Drill hole From (m) To (m) Interval (m) Gold (g/t) Copper (%)
YAR-06 0 257.0 257.0 0.50 0.10
Including 131.8 257.0 125.2 0.66 0.13
YAR-07 0 124.0 124.0 0.54 0.12
Including 75.0 124.0 49.0 0.63 0.13
YAR-08 0 250.0 250.0 0.51 0.13
Including 83.1 102.55 19.45 0.79 0.19
Including 175.0 232.6 57.6 0.82 0.17
YAR-11 0 141.4 141.4 0.77 0.09
Including 55.5 141.4 85.9 1.02 0.08
Including 138.15 140.00 1.85 33.75 0.04
YAR-14 75.10 170.60 95.50 0.70 0.09
YAR-23 4.00 120.80 116.80 0.49 0.08
Including 76.00 92.10 16.10 1.00 0.10
YAR-24 0 151.00 151.00 0.64 0.07
Including 41.90 44.00 2.10 12.67 -
Including 74.50 124.00 49.50 0.82 0.07
Goldmining has not completed sufficient work to verify these exploration and drilling results, however the company believes the historical exploration work is relevant to any future exploration and as an indication of the potential of the project. A technical report was completed prior to these exploration programs for Newrange by Richard J. Thompson of Thompson Consulting titled "Yarumalito Project Technical Report" with an effective date of Nov. 30, 2006.
Goldmining intends to engage an independent qualified person to, among other things, complete a technical report for Goldmining on the project, including verifying historic exploration results and, assuming sufficient sample density, completing a resource estimate for the project.
Goldmining expects future exploration programs will look to expand mineralization outlined at the Balastreras-Escuela targets and drill test the remaining four geophysical and geochemical anomalies.
Paulo Pereira, president of Goldmining, has reviewed and approved the technical information contained in this news release. Mr. Pereira holds a bachelor degree in geology from Universidade do Amazonas in Brazil, is a qualified person as defined in National Instrument 43-101 and is a member of the Association of Professional Geoscientists of Ontario.
About Goldmining Inc.
Goldmining is a public mineral exploration company focused on the acquisition and development of gold assets in the Americas. Through its disciplined acquisition strategy, Goldmining now controls a diversified portfolio of resource-stage gold and gold-copper projects in Canada, the United States, Brazil, Colombia and Peru.
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