Dr. Jaap Verbaas reports
CAVU MINING TO ACQUIRE 100% INTEREST IN THE STAR COPPER-GOLD PORPHYRY PROJECT IN BC
Cavu Mining Corp. intends to acquire a 100-per-cent interest in the Star project, a copper-gold porphyry project in Northern British Columbia. As part of the transaction, Cavu has acquired a 49-per-cent interest in the Star project from the court-appointed receiver of Otso Gold Corp. and signed a letter of intent to acquire the remaining 51-per-cent interest from Prosper Gold Corp. The Star project is located in the traditional territory of the Tahltan First Nation.
Star project highlights:
- Historical drill results include:
- S045: 106.98 metres (m) at 1.02 per cent copper equivalent (CuEq) from 12.02 m;
- S048: 76.94 m at 1.12 per cent CuEq from 2.06 m;
- S048: 288 m at 0.67 per cent CuEq from 123 m;
- S049: 324 m at 0.58 per cent CuEq from four m;
- S005: 242.3 m at 0.63 per cent CuEq from surface;
- 6,829-hectare copper porphyry project, 100 kilometres (km) west-southwest of Dease Lake, B.C.;
- Five confirmed and permitted drill-ready porphyry targets defined;
- Supergene-enriched zone preserved;
- Mineralization to 700 m depth;
- Over 18,000 m of historical drilling completed.
"The Star project is a valuable addition to Cavu's copper portfolio," stated Dr. Jaap Verbaas, chief executive officer of Cavu. "The Star project is well aligned with our management team's experience and we believe that it will add significant value for our shareholders. This is a proven porphyry system that has been tested to 700 m below surface and remains open at depth. Cavu intends to compile and analyze all existing data on the project and proceed with a comprehensive exploration program to further test the five porphyry targets that have already been partly delineated by previous drilling campaigns."
The Star project is 6,829 hectares (ha) and located about 50 km of the community of Telegraph Creek, in the traditional territory of the Tahltan First Nation. Regionally, the property is within the Stikine arch, an important geological region that hosts a number of large porphyry copper-gold projects (Red Chris and Galore Creek deposits, respectively 135 km southeast and 105 km southwest of the property). Access to the Star project is through a fixed-wing airstrip on site and a network of trails and drill roads. Camp facilities are on site and were last used in 2014. The project is also permitted for drilling until March 31, 2026.
The Star property has been explored since the 1950s with a total of 18,739 m of drilling since 1955. The main Star target is the most developed target and has been the subject of several drill programs. The property also contains several less developed targets.
- Porphyry proven by drilling to extend to 700 m below surface;
- 550-metre-by-950-metre copper-and-gold-in-soil anomaly;
- Coincident IP (induced polarization) chargeability and magnetic anomaly;
- Consistent copper to gold ratios;
- Surface trench results include 0.43 per cent copper (Cu) and 0.25 gram per tonne (g/t) gold (Au) over 214 m.
Most of the drilling on the project has been on the Star target.
- Located 1,000 m northeast of Star;
- IP, magnetics and copper-and-gold-in-soil anomalies covering 500 m by 700 m;
- No history of drilling or surface trenching.
- Located 1,000 m east-southeast of Star;
- 500-metre-by-500-metre copper-and-gold-in-soil and IP anomaly;
- Open in all directions;
- Confirmed by surface sampling.
- Linear 750 m to 1,800 m altered and mineralized corridor;
- High copper-in-soil anomalies on margin of 1.2-square-kilometre IP anomaly;
- Historical hand trenching results of 130 m at 0.40 per cent Cu.
- Two soil anomalies spread over 550 m by 1,000 m;
- Soil and associated geophysical anomalies open to north, south and east;
- Extensive malachite-azurite gossans over the area.
Terms of the Star acquisition
Cavu closed the 49-per-cent acquisition by way of an asset purchase agreement with Deloitte Restructuring Inc. (in its capacity as the court-appointed receiver of Otso Gold), following receipt of an approval and vesting order from the Supreme Court of British Columbia, by payment of a lump sum cash amount of $220,000.
The remaining 51-per-cent interest in the Star project is held by Prosper Gold, which is also the operator of the project under a joint venture agreement. Cavu and Prosper have entered into a letter of intent setting out the terms of an option agreement whereby Cavu may acquire the 51-per-cent interest by (i) issuing 1.25 million common shares to Prosper within seven days after the definitive agreement being signed; and (ii) cash payments to Prosper in the amounts of:
- $100,000 within seven days of the effective date;
- $285,000 by July 1, 2022;
- $385,000 within one year of the effective date;
- $385,000 within two years of the effective date.
Should Cavu not exercise the 51-per-cent option in full, Prosper shall have a 30-day period from the termination date to purchase Cavu's 49-per-cent interest in the Star project for a lump sum cash payment of $500,000.
The Star project is subject to a royalty with certain legacy owners representing 2 per cent of net smelter returns upon commercial production. One-half of the royalty may be repurchased from the royalty holders for a price of $2-million.
None of the results in this news release have been independently verified by the company. As such, the results should be interpreted to be historical in nature and investors are cautioned not to rely unduly on such results.
Roger Hulstein, PGeo, is the qualified person for the company as defined in the National Instrument 43-101 and has reviewed the technical information presented within this 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 Hopper copper-gold project in Yukon and continues to evaluate complimentary mineral projects in mining-friendly jurisdictions.
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