Dr. Jaap Verbaas reports
CAVU MINING ANNOUNCES HOPPER PORPHYRY COPPER OPTION AGREEMENT AND FORWARD STOCK SPLIT
Cavu Mining Corp. has entered into an option agreement with Strategic Metals Ltd. for a 70-per-cent interest in the Hopper copper project in Yukon. The Hopper project is located in the traditional territory of the Champagne and Aishihik first nation.
Hopper project highlights
- Drill-ready claim with porphyry and skarn mineralization;
- Road-accessible and close to power;
- Porphyry targets undrilled;
- Historical skarn drill results with 18.59 metres of 1.94 per cent copper and 0.87 gram per tonne gold;
- Permitted for advanced exploration to 2022.
"The Hopper project is an exciting addition to Cavu's portfolio of exploration projects," stated Cavu's chief executive officer, Dr. Jaap Verbaas. "It has all the symptoms of a large porphyry system such as peripheral skarn mineralization and copper-in-soil anomalies which correspond to undrilled IP chargeability highs. The Hopper pluton is the same age as plutons associated with copper porphyry deposits in the region. It lies along similar north-west-trending structures. Despite the favourable geologic setting and data, the Hopper pluton has only been tested with one drill hole deeper than 100 metres, which did not intersect the main chargeability anomalies. The project further benefits from road access and a permit for advanced exploration which allows us to start drilling the most promising targets promptly."
The Hopper project consists of 365 claims totalling 74 square kilometres in southern Yukon. The project is located 22 km north of the Otter Falls hydroelectric generator and 320 km from the deep seaport of Haines in Alaska. The claim is road accessible with roads and trails leading to the main targets.
A total of 13,526 m in 146 holes was drilled by past operators including Strategic, with most holes targeting skarn mineralization. The skarn horizons have yielded gold results such as 12.95 g/t Au over 2.65 m in DDH15-01 and 43.6 g/t Au over one metre in DDH15-08, and polymetallic results such as 0.6 per cent Cu and 1.11 g/t Au over 14.43 m in DDH15-04. Porphyry copper mineralization is evident from chip sampling of trenches that yielded 51.3 m true width at 0.43 per cent Cu, 0.06 g/t Au and 1.83 g/t Ag and 0.52 per cent over 45.7 m. Only one diamond drill hole has tested the porphyry target and yielded 0.17 per cent Cu over 162.85 m in DDH15-05. Cavu is currently planning drill collars to test both the porphyry target and infill of the skarn target for its 2021 exploration program and expects to drill roughly 1,500 m. Drilling is fully permitted.
Cavu may earn a 70-per-cent interest in the Hopper project by making the following payments to Strategic:
- Upon signing: $25,000 and 50,000 shares;
- First anniversary: $75,000 and 50,000 shares;
- Second anniversary: $150,000 and 50,000 shares;
- Third anniversary: $200,000 and 50,000 shares;
- Fourth anniversary: $250,000 and 50,000 shares.
After year two, Cavu may elect to pay half the cash payments in common shares. Cavu must also incur $5-million of work expenditures over four years to exercise its option. All share payments are given on a preforward split basis.
The company has arranged a two-for-one share split of the company's issued and outstanding common shares. Each shareholder of record of the company as of the close of business on the record date will receive one additional share for each share held on such date. The stock split is intended to create additional liquidity and attract a broader range of investors.
Following the issuance of the 50,000 common shares to Strategic pursuant to the property option agreement, the company currently will have 9,933,751 issued and outstanding common shares. Upon completion of the split, there will be approximately 19,867,502 shares issued and outstanding. The record date for the stock split is Friday, April 9, 2021, and the company has been advised that the shares will begin trading on a postsplit basis on Thursday, April 8, 2021.
Cavu shareholders do not need to take any action with respect to the stock split. Cavu's transfer agent will send owners of common shares a DRS advice letter in lieu of a share certificate, which will represent the additional number of common shares to be received as a result of the stock split.
1TH77-2, true width approximately 12 m, is a historic hole and has not been verified. All other data disclosed in this news release was collected and analyzed by Strategic and former partners of Strategic. All data were deemed reliable by Jean Pautler, PGeo, as reported in the 43-101 report filed by Strategic in December, 2017. The company has undertaken no further steps to verify the data.
Jeremy Hanson, PGeo, is the qualified person for the company as defined in the National Instrument 43-101 and has reviewed the technical information presented witshin the news release.
About Cavu Mining Corp.
Cavu Mining is a mining company engaged in the acquisition, exploration and development of mineral projects containing metals used in green technologies and the renewable energy sector. The company is currently focused on the exploration of its Kitimat copper project in British Columbia and continues to evaluate complimentary mineral projects in mining-friendly jurisdictions.
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