Mr. Leif Nilsson reports
SURGE COPPER ANNOUNCES ACQUISITION OF ADDITIONAL CLAIMS IN HUCKLEBERRY DISTRICT AND APPOINTMENT OF NEW BOARD CHAIR
Surge Copper Corp. has executed a definitive asset purchase agreement to acquire a 100-per-cent interest in the Sylvia mineral claims located in the northern area of the Huckleberry district in central British Columbia, contiguous with the Berg property and the company's other 100-per-cent-owned claims in the area.
The Sylvia claims host an underexplored porphyry target consisting of a 500-by-2,000-metre sulphide alteration zone that straddles the south contact of a granodiorite stock. Historical drilling in 1974 by Hudson Bay Oil and Gas Company Ltd. intercepted 63 metres grading 0.33 per cent copper and 0.02 per cent molybdenum, starting at 9.1 metres downhole, with the hole ending in mineralization. The claim area was also included in the recently completed district-wide airborne geophysical survey, allowing the company to accelerate its exploration planning in the area. The Sylvia claims comprise two mineral claims totalling approximately 572 hectares. Under the terms of the agreement, Surge will issue to three vendors a total of 390,000 common shares and will grant the vendors a 2-per-cent net smelter return royalty on the claims, subject to a perpetual buyback right on half of the royalty for $1-million. The terms of the agreement and issuance of Surge shares are subject to TSX Venture Exchange approval, and the shares will be subject to a statutory four-month hold period.
The acquisition of these claims provides the company with another quality porphyry exploration target with known copper mineralization within this highly prospective porphyry district. The Sylvia claims occur in relatively flat, low-lying terrain with direct road access, allowing for low-cost and potentially year-round exploration of the target.
Appointment of new board chair
The company has appointed Christian Kargl-Simard as non-executive chairman of the board. Mr. Kargl-Simard has served as a director of Surge since the September, 2020, recapitalization of the company and has played an important role in the development of the business over the past 12 months. Mr. Kargl-Simard has served as president, chief executive officer and director of Adventus Mining Corp. since December, 2016. Patrick Glazier, who has served as chairman of the company since 2016, remains an independent director of the company.
Mr. Kargl-Simard commented: "It's an honour to be appointed as chairman of Surge, and to be working with such a high-calibre board. In just one year the business has advanced rapidly, having raised over $20-million in new equity, completed several district consolidation deals, including the Berg transaction, and drilled over 44,000 metres. This district is one of the most prospective for copper in British Columbia, and we look forward to making new discoveries on the back of our district-wide geophysical survey and working to realize the mining potential of our resources."
Dr. Shane Ebert, PGeo, is the qualified person for the Ootsa and Berg projects as defined by National Instrument 43-101, and has approved the technical disclosure contained in this news release.
About Surge Copper Corp.
The company owns a 100-per-cent interest in the Ootsa property, an advanced-stage exploration project containing the East Seel, West Seel and Ox porphyry deposits located adjacent to the open pit Huckleberry copper mine, owned by Imperial Metals. The Ootsa property contains pit-constrained National Instrument 43-101-compliant resources of copper, gold, molybdenum and silver in the measured and indicated categories.
The company is also earning into a 70-per-cent interest in the Berg property from Centerra Gold. Berg is a large, advanced-stage exploration project located 28 kilometres northwest of the Ootsa deposits. Berg contains pit-constrained NI 43-101-compliant resources of copper, molybdenum and silver in the measured and indicated categories. Combined, the adjacent Ootsa and Berg properties give Surge a dominant land position in the Ootsa-Huckleberry-Berg district and control over four advanced porphyry deposits.
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