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Precipitate Gold Corp
Symbol PRG
Shares Issued 107,068,031
Close 2021-10-18 C$ 0.09
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Precipitate Gold begins fieldwork at Ace

2021-10-18 13:41 ET - News Release

Mr. Jeffrey Wilson reports


Precipitate Gold Corp. has commenced exploration fieldwork on the Ace project, located at the northern end of the highly prospective Exploits subzone (Dunnage tectonic zone) of north-central Newfoundland, Canada.

With a Newfoundland government permit to conduct prospecting and ground geophysics, the company has started a projectwide prospecting and geological mapping program. Initially, field crews will focus on the newly identified Ace zone; a 10-metre- to 20-metre-wide alteration and shear zone that trends northeast-southwest, with select grab rock samples up to 5.4 grams per tonne gold. Crews will then expand the exploration focus to cover prospective areas with limited past exploration, including government till samples that reported anomalous pathfinder elements (located approximately 2.5 kilometres north of the Ace zone) and outcropping rocks on the western side of the project.

Precipitate's president and chief executive officer, Jeffrey Wilson, stated: "We are very pleased to commence fieldwork on the Ace project, which is located within the highly prospective Exploits subzone geological district of Newfoundland. One of the many benefits of the recently announced option agreement for the project is the pre-existing permit to conduct fieldwork, which allows us to start our work immediately, with the goal of establishing potential drill targets as efficiently as possible."

Precipitate's core objective for this phase of work is to utilize detailed prospecting and surface sampling to discover new mineralized zones to complement the existing Ace zone as potential areas for follow-up ground geophysical surveying, which ultimately would refine prospective drill targets for an initial first phase of drilling. Additionally, the company has submitted an exploration permit application for projectwide airborne geophysical and geochemical (till and lake) sampling surveys, which the company intends to initiate as a follow-up to the current ground program.

On Oct. 12, 2021, the company announced it had secured exclusive rights to acquire a 100-per-cent interest in the Ace gold project by way of a four-year option agreement, which has now received TSX Venture Exchange approval.

Ace project highlights

Ace gold zone:

  • A recent new discovery of a 10-metre- to 20-metre-wide alteration and shear zone that trends northeast-southwest, with select grab rock samples up to 5.4 grams per tonne gold;
  • Ace gold zone is situated at the northeast end of a gold-enriched geological trend that includes numerous high-grade gold occurrences;
  • 13 kilometres northeast along trend from Ethos Gold Corp.'s Toogood property (reported high-grade grab samples included 7,877 grams per tonne gold, 1,276 grams per tonne gold, 1,113 grams per tonne gold and 226 grams per tonne gold;
  • Nine kilometres northeast along trend from Exploits Discovery Corp,'s Quinlan veins (reported sample results include 61.3 grams per tonne gold, 59.0 grams per tonne gold, 14.4 grams per tonne gold, 14.2 grams per tonne gold and 12.6 grams per tonne gold;
  • Historical reported visible gold and select rock grab samples up to 164 grams per tonne gold at the Change Island mineral occurrence located about one kilometre to northeast of property border;
  • Underlain by Exploits subzone rocks (Dunnage zone); highly prospective lithologies that host significant gold mineralization across central Newfoundland, including Marathon Gold Corp.'s Valentine project, which hosts 3.14 million ounces measured and indicated at a grade of 1.72 grams per tonne gold;
  • Paved highway and high-voltage electrical power lines bisects island in a north-south direction;
  • Accessible by 20-minute Newfoundland government vehicle ferry departing hourly.

Regional geology of Ace gold project

The Ace gold project is located on the north-central coast of Newfoundland, within an active gold exploration region that includes high-profile gold exploration projects such as Queensway (New Found Gold Corp.), Kingsway (Labrador Gold Corp.), Dog Bay (Exploits Discovery) and Toogood (Ethos Gold).

Project lithologies are part of the major regional Dunnage tectonostratigraphic zone, specifically the Exploits subzone, where claims are dominantly underlain by Ordovician-age to Silurian-age Badger group sediments and Botwood group non-marine volcanics, with a general northeast-southwest trend and subvertical dip. Project gold mineralization identified to date is associated with possibly orogenic quartz veins, silicification, and sulphide minerals pyrite and arsenopyrite, with lesser chalcopyrite and galena; often concentrated within bedding conformable shears and conjugate brittle faults.

Additionally, the company has granted stock options to certain of its directors, officers and consultants to purchase up to 2.15 million common shares. Each option is exercisable to acquire one common share of Precipitate at a price of 9.5 cents until Oct. 18, 2026. The options will vest in accordance with the company's stock option plan and are subject to TSX Venture Exchange acceptance.

Note: Certain information and data in this news release concerning the Ace project and exploration results reported on for nearby and/or regional located gold projects are derived from publicly available sources, including public company websites, assessment reports and Newfoundland government technical sources. The reliability of some historical data is unknown but is considered relevant by company management. The historical data may be non-National Instrument 43-101 compliant and should not be relied upon. It is the company's intention to verify the historical data; however, confirmation work may produce results that differ substantially from the historic results. High-grade rock grab samples are selective by nature and are unlikely to represent average grades on the property.

This news release has been reviewed by Michael Moore, vice-president, exploration, of Precipitate Gold, the qualified person for the technical information in this news release under NI 43-101 standards.

About Precipitate Gold Corp.

Precipitate Gold is a mineral exploration company focused on exploring and advancing its mineral property interests in Newfoundland, Canada, and the Pueblo Viejo mining camp and Tireo gold trend of the Dominican Republic. The company has entered into an earn-in agreement with Barrick Gold Corp., whereby Barrick can earn a 70-per-cent interest in the company's Pueblo Grande project by incurring $10-million (U.S.) within six years and producing a qualifying prefeasibility study. Precipitate is also actively evaluating additional high-impact property acquisitions with the potential to expand the company's portfolio and increase shareholder value in other favourable jurisdictions.

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