Mr. Andrew Pollard reports
BLACKROCK GOLD ANNOUNCES FINANCING; UNVEILS SYSTEMATIC SILVER CLOUD EXPLORATION PROGRAM
Blackrock Gold Corp. has arranged a non-brokered private placement of up to 7.5 million units at a price of 20 cents per unit for gross proceeds of up to $1.5-million. Each unit comprises one common share and one-half of one share purchase warrant. Each whole warrant will entitle the holder to acquire one additional common share in the capital of the company at a price of 30 cents per share for a period of two years from the date the units are issued.
The offering is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the TSX Venture Exchange. The common shares to be issued under the offering will have a hold period of four months and one day from the closing. The net proceeds of the offering will be used by the company to finance the initial 2020 drilling program and exploration work on the company's Silver Cloud property, and general working capital.
The company may pay finders' fees on a portion of the offering of up to 6 per cent in cash and, for subscriptions exceeding $250,000 in the aggregate or from institutional investors, finder's warrants equal to 4 per cent of such units placed by the finder, exercisable for a two-year term at a price of 30 cents per common share.
Initial 2020 exploration program
The highlights of the company's next exploration program for its 100-per-cent-controlled low sulphidation epithermal Silver Cloud project located on the Northern Nevada Rift in Elko county, Nevada, are as follows:
- Immediately mobilize core drill to site to follow up on positive drill results received from core holes SBC19-001 and SBC19-002 (see news release dated Jan. 6, 2020), testing the extent of the mineralized system at depth in search of the boiling zone;
- Assemble geophysical crew to complete induced polarization survey between the Northwest Canyon through the Silver Cloud mercury mine to the eastern property boundary to capitalize on gold-bearing sulphide filled structures and felsic intrusives along the five-kilometre trend;
- Co-ordinate induced polarization survey over NE veins target to aid in targeting maiden drill program;
- Property-wide gravity survey to infill existing survey and gain better resolution on structural orientations and altered flow dome locations;
- Complete mapping, sampling and drill hole targeting at the Northeast Veins and Quiver targets;
- Commence maiden drill program at NE veins target consisting of up to 3,000 m of reverse circulation (RVC) drilling in six holes.
Andrew Pollard, president and chief executive officer of the company, stated: "With gold assays from drill holes SBC19-001 and SBC19-002 in hand serving as a proof of concept confirming the east-west orientation of the mineralized vein system at Silver Cloud, we are eager to hit the ground running in 2020 by following up on these exciting gold results and searching for bonanza gold grades that may lurk at depth. With a better understanding of the structural orientation of the system and the significant presence of sulphides encountered in our initial drill program, we want to enhance our targeting of the deep-seated structures at the Silver Cloud mine area and at our NE veins target using gravity and IP geophysics. The NE veins target, sitting adjacent to Hecla's Hollister mine and encompassing eight known outcropping veins atop a 1,300 m by 800 m geochemical and gravity geophysical anomaly, is slated for its maiden drill program by summer. We are in one of the most productive gold mining districts in Nevada with the surrounding deposits revered for their high grades, and we have an abundance of high-potential targets. We are eager to build upon our initial success at Silver Cloud and look forward to what 2020 brings."
On Jan. 6, 2020, Blackrock Gold released positive drill hole gold assays from a portion of its 2019 core drilling program, and the 2020 exploration program will follow up on the high-grade gold intercepts encountered in the Silver Cloud mine area and at Northwest Canyon. As discussed on Jan. 6, 2020, press release, the structural data show gold is associated with an east-west structural component. The 2019 drill program cut the ore-controlling structures at a high level, and deeper penetration of the gold system is required to intersect the boiling zone and potential bonanza gold grades.
Two core holes will be drilled to test deeper into the gold system. Planned to start in early February, one core hole will be located at the Silver Cloud mine while the second is proposed at Northwest Canyon. The drill holes will be completed to approximately 750-metre depth from existing permitted drill sites with the aim of intersecting the gold-bearing structure deeper in the system.
Two induced polarization (IP) surveys are scheduled for mid-spring. The first will help to identify sulphide bodies along the east-west gold trend between the eastern boundary of the project through the Silver Cloud mercury mine toward Northwest Canyon. A series of IP lines will be run along the five-kilometre trend which will help to target drill holes between the known gold sites. The survey will be used to identify chargeability zones that may be related to sulphides and gold-bearing structures. At the Silver Cloud mine and Northwest Canyon, abundant sulphides were encountered in drilling and associated with the gold-bearing intervals. The IP survey will also indicate whether the four gravity lows between the Northwest Canyon and eastern project boundary have coincident chargeability anomalies.
The second IP survey will be conducted over the NE veins target. Since the gold system has significant sulphide content, the IP survey will identify those areas that host chargeability anomalies that can be followed up with drilling.
The initial round of drilling scheduled for the summer at the NE veins target will utilize reverse circulation (RVC) drilling to explore the vein zones and geophysical anomalies. The program would consist of five to six RVC drill holes with a nominal depth of 500 metres each.
The project currently has a wide-spaced gravity survey with stations on 500-metre centres. The infill gravity survey will bring the stations to a maximum of 100-metre centres with selected areas being reduced to 50-metre centres. The infill gravity survey scheduled to begin in February will help to resolve the structural complexity identified in the drilling and help to quantify the depth to basement lithologies.
PROPOSED INITIAL SILVER CLOUD PROGRAM AND BUDGET
Target area Program Objective Timing
Silver Cloud mine and Follow-up 1,500 m core drilling Intersect gold-bearing structures Immediate
Northwest Canyon deeper in the epithermal system
Silver Cloud mine and IP survey Identify chargeability anomalies Mid-spring
Northwest Canyon to refine drill targets
NE veins target IP survey Identify chargeability anomalies Mid-spring
to refine drill targets
NE veins target Mapping and sampling Identify surface outcropping veins Mid-spring
and structural setting
NE veins target Initial 3,000 m RVC drill program Drill discovery hole in NE Veins Summer
Silver Cloud property Infill gravity survey Achieve better resolution on Immediate
structure and basement depth
Blackrock's exploration activities at the Silver Cloud project are being conducted and supervised by William Howald, executive chairman of Blackrock Gold. Mr. Howald, AIPG certified professional geologist No. 11041, is a qualified person as defined under National Instrument 43-101. He has reviewed and approved the contents of this news release.
About Blackrock Gold Corp.
Blackrock is a junior gold-focused exploration company that is on a quest to make an economic discovery. Anchored by a seasoned board, the company is focused on its Silver Cloud property, a low-sulphidation epithermal gold and silver project located along on the established Northern Nevada Rift gold trend in north-central Nevada.
We seek Safe Harbor.
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