14:25:40 EDT Fri 14 Jun 2024
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Lode Gold Resources Inc
Symbol LOD
Shares Issued 361,619,547
Close 2024-04-17 C$ 0.045
Market Cap C$ 16,272,880
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Lode Gold makes payments for McIntyre Brook option

2024-04-25 15:46 ET - News Release

Ms. Wendy Chan reports


Lode Gold Resources Inc. has closed the shares for debt transaction, previously announced on April 2, 2024.

The company had second-year anniversary payments due pursuant to the terms of seven arm's-length option agreements on its McIntyre Brook property in New Brunswick. The company made payments totalling $209,000, satisfied by payments of $77,000 in cash and $132,000 by the issuance of 4.4 million common shares at a deemed price of three cents per share, premium to 30-day VWAP (volume-weighted average price) at the time.

Of note, certain property optionors chose to take all or part of their payments in shares, in a show of support and belief in the company's new management team and its restructuring and growth strategic plans.

Wendy T. Chan, chief executive officer of Lode Gold, added: "We are eagerly anticipating exploration efforts on these grounds which are on the Appalachian gold trend (hosts New Found Gold's Queensway project, Calibre's Valentine Lake project, St. Barbara's Touquoy mine). This transaction signifies the unity in Lode Gold's property optionors in their alignment with the company's new strategic direction. Conserving cash in Lode Gold rather than property payments enables us to put more work in the ground to advance the assets."

The shares are subject to a trading restriction of four months and one day.

About Lode Gold Resources Inc.

Lode Gold is a Canadian exploration and development company with grassroots and advanced exploration properties in highly prospective and safe mining jurisdictions.

Its Golden Culvert and Win projects in Yukon, covering 99.5 square kilometres across a 27-kilometre strike length, are situated in a district-scale, high-grade-gold-mineralized trend within the southern portion of the Tombstone gold belt. Gold deposits and occurrences within the belt include Fort Knox, Pogo, Brewery Creek and Dublin Gulch as well as Snowline Gold's Valley target on its Rogue property in the Selwyn basin.

Its McIntyre Brook project in New Brunswick, covering 120 square kilometres and a 17-kilometre strike length in the emerging Triple Fault gold belt, is surrounded by Puma Exploration's Williams Brook project (5.55 grams per tonne gold over 50 metres) and is hosted by orogenic rocks of similar age and structure as New Found Gold's Queensway project.

The company is also advancing its Fremont gold development project in the historic Mother Lode gold belt of California, where 50 million ounces of gold have been produced. Fremont, located approximately 500 kilometres north of Equinox Gold's Castle Mountain and Mesquite mines, has a preliminary economic assessment with an after-tax net present value (NPV) (discounted at 5 per cent) of $217-million (U.S.), a 21-per-cent internal rate of return (IRR) and an 11-year life of mine (LOM), averaging 118,000 ounces per annum at $1,750 (U.S.) of gold. A sensitivity to the March 31, 2023, PEA at $2,000 (U.S.) per ounce gold gives an after-tax NPV (discounted at 5 per cent) of $370-million (U.S.) and a 31-per-cent IRR over an 11-year LOM. The project hosts a National Instrument 43-101 resource of 1.16 million ounces at 1.90 g/t Au within 19 million tonnes indicated and 2.02 million ounces at 2.22 g/t Au within 28.3 million tonnes inferred. The mineral resource estimate evaluates only 1.4 kilometres of the four-kilometre strike length of the Fremont property that features four gold-mineralized zones. Significantly, three stepout holes at depth hit structure, typical of orogenic deposits, which often occur at depth. Fremont is located on private land in Mariposa, the original gold rush county, and is 1.5 hours from Fresno, Calif. The property has year-round road access and is close to airports and rail. Please refer to the Fremont gold project PEA dated March 31, 2023, under NI 43-101 guidelines. The technical report has been reviewed and approved by independent qualified persons Eugene Puritch, PEng, FEC, CET, and Andrew Bradfield, PEng, both of P&E, and Travis Manning, PE, of KCA.

Qualified person statement

The scientific and technical information contained in this press release has been reviewed and approved by Jonathan Victor Hill, director, BSc (honours) (economic geology -- UCT), FAusIMM, who is a qualified person as defined by NI 43-101, Standards of Disclosure for Mineral Projects.

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