Mr. Rick Mark reports
HARVEST GOLD RECEIVES DRILL PERMITS FOR PHASE 1 DIAMOND DRILL PROGRAM AT CERRO CASCARON AND ANNOUNCES NON-BROKERED PRIVATE PLACEMENT
Drill permits to conduct a phase 1 diamond drilling exploration program at the high-grade Cerro Cascaron gold-silver project in Mexico have been received by Harvest Gold Corp.
The phase 1 plan for diamond drilling consists of 14 diamond drill holes comprising 3,000 to 3,500 metres in five of eight target areas on the property which have been defined by rock channel, grab and soil samples. Planned hole depths range from 100 to 300 metres.
Harvest Gold's president and chief executive officer, Rick Mark, states: "We are very pleased to have received the drill permits for our initial drill program at Cerro Cascaron. I would like to thank our shareholders for their patience, as we did expect the permits to be awarded earlier in the year but now look forward to working with our joint venture partner Evrim Resources Corp. to get our first drill campaign started as soon as possible."
Predicated on the success of the phase 1 program, Harvest and Evrim contemplate
a multiple-phase drill program at Cerro Cascaron. A phase 2 drill program, consisting of an additional 3,700 metres, will be considered in the Dolores, San Pedro, El Salto, Cascarita, La Puerta, Carabina and Julieta areas, in addition to pursuing drill successes from phase 1.
The Cerro Cascaron project covers 69 square kilometres in a historic colonial-era mining district in the prolific Sierra Madre Occidental (SMO) precious metals belt of western Chihuahua state. Harvest Gold has the right to earn an up-to-80-per-cent interest in Cerro Cascaron from Evrim by incurring certain exploration expenditures, making cash and share payments, and delivering a National Instrument 43-101-compliant feasibility study.
Harvest and Evrim have negotiated a six-month extension to Dec. 31, 2018, for the completion of Harvest's first-year exploration commitment and cash payment on Cerro Cascaron. Harvest will pay $30,000 cash to Evrim upon signing the extension. All other obligations under the option agreement remain the same.
proposes to raise up to $1.8-million
through a non-brokered private placement of up to 36 million units at price of five cents per unit.
Each unit will consist of one common share and one transferable common share purchase warrant,
each warrant entitling the holder to acquire one additional common share of the company at a price of
10 cents per common share for two years from the date of issuance.
The warrants will be subject to an acceleration clause whereby
in the event that the closing price of the company's common shares on the TSX Venture Exchange is 17 cents or greater per share during any 20-non-consecutive-trading-day period at any time, the warrants will expire at 4 p.m Vancouver time on the 30th day after the date on which the company provides notice of such accelerated expiry to the warrantholders.
Finders' fees may be payable in cash and warrants in accordance with the policies of the TSX Venture Exchange.
The company plans to use the proceeds of the private placement for the phase 1 drill program and additional regional exploration at Cerro Cascaron and for general working capital purposes.
About the Cerro Cascaron project
The Cerro Cascaron property hosts a low-to-intermediate sulphidation epithermal gold-bearing system and includes a high-grade gold vein field measuring approximately 18 square kilometres in
area on the eastern third of the property. Veining has been mapped on a cliff face for over 900 vertical metres, with classic textural evidence of multiple phases of hydrothermal boiling accompanying the highest gold grades. These boiling zones have been established in the upper 380 metres of the vein field. Beneath the boiling zones, silver- and base-metal-rich veins and breccias provide additional exploration targets.
Cerro Cascaron's setting and mineralization are similar to many epithermal deposits in the SMO, including Fresnillo PLC's La Cienega mine in Durango, Goldcorp Inc.'s past-producing El Sauzal gold mine and, farther south, First Majestic's San Martin de Bolanos silver mine in Jalisco state. The property is approximately 55 kilometres southeast of Goldcorp's past-producing El Sauzal gold mine and is one of the few unexplored and undrilled opportunities in the region.
Readers should refer to Evrim's press releases dated June 8, 2016, and Aug. 17, 2016, and Harvest Gold's press releases dated June 8, 2016, and June 15, 2016, Oct. 5, 2017, and Oct. 18, 2017, and Nov. 27, 2017, for a full description of previous exploration results.
Quality assurance/quality control
Warren Bates, PGeo (APGO No. 0211), the company's director of property investigation, is the qualified person for this press release for the purposes of National Instrument 43-101, and has reviewed and approved the technical information herein.
About Harvest Gold Corp.
Harvest Gold is a gold-focused mineral exploration company with an experienced board of directors and management whose collective geological and financing experience exceeds 200 years. Harvest also holds
three fully registered mineral concessions on properties in the Republic of Suriname -- the Goliat-Tibiti, Gonini River and Oelemari concessions.
We seek Safe Harbor.
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