Russell Starr reports
TRILLIUM GOLD ACQUIRING 80% INTEREST IN GOLD CENTRE PROPERTY IN THE HEART OF THE RED LAKE MINING CAMP
Trillium Gold Mines Inc. has signed a binding joint venture agreement with Rupert Resources Ltd. to acquire an 80-per-cent ownership in the Gold Centre property from Rupert. Under the terms of the joint venture agreement, in order to maintain its 80-per-cent interest in the property, Trillium is required to spend $2-million each year for five years on the property (total spend: $10-million), and to issue 500,000 shares to Rupert on the effective date of the joint venture and for each of the three years after (total shares issued: two million). Thereafter, Trillium is required to spend $500,000 per year in order to maintain its 80-per-cent interest in the property. Rupert's portion of any amounts incurred by the company on the Gold Centre property after a decision to construct a mine are recoverable by the company from Rupert's share of the revenues of the joint venture.
Russell Starr, chief executive officer of Trillium Gold, comments: "Trillium continues focused and strategic [mergers and acquisitions] in the Red Lake camp. Gold Centre has the potential to be a world-class asset, and generate substantial value to Trillium Gold's market capitalization and shareholder base. Our technical team is eager to test for the logical extension of the Red Lake mine's mineralization onto the Gold Centre property."
The Gold Centre property lies to the southeast and within the shadow of the head frame of Evolution Mining's Red Lake mine. The property is contiguous with Evolution's operating property and comprises 258 hectares made up of one lease containing 16 claims.
Drilling programs completed by Rupert Resources in 2004 and 2007, totalling 11,372 metres, successfully intersected the prolific Balmer mafic metavolcanics, the dominant sequence of rocks that hosts the southeastern extension of the Red Lake mine ore zones at depth.
Trillium Gold is planning a strategic and targeted exploration program for the Gold Centre project. A key component of the $2-million drilling program is deep oriented core drilling (two holes of 1,000 metres) to test for the down-plunge extension of the High Grade zone (HGZ) currently in production at the neighbouring Evolution Mining's Red Lake mine. With success, Trillium will have proven that this prolific gold zone continues on to the Gold Centre property and is only about 350 m from the current operating areas of Evolution's mine.
Key characteristics of the Gold Centre property (from the 2014 National Instrument 43-101 technical report on the Gold Centre property by Osmani and Zulinski):
The favourable Balmer mafic metavolcanics hosting several gold deposits at the adjacent Red Lake mine have been identified in drill core and on surface following the 2013 geological mapping program.
The more recent discovery of the Far East zone by Goldcorp has provided further support that the southwest-dipping Red Lake mine trend potentially extends through the Gold Centre property at depth.
The interpreted unconformity between the Balmer and Huston assemblages will be a high-priority target on the Gold Centre property. Several of the Red Lake mines occur within or adjacent to this regional unconformity according to Dube et al. (2003: "Gold mineralization within the Red Lake mine trend: example from the Cochenor-Willans mine area, Red Lake Ontario, with new key information from the Red Lake Mine and potential analogy with the Timmins camp," Geological Survey of Canada, Current Research 2003-C21).
Following the geophysical induced polarization survey in 2013, a total of nine anomalous trends have been interpreted on the Gold Centre property, three of which are identified on the north grid as strong to very strong. Two are indicative of a sulphide mineralization source potentially associated with complexly folded/faulted contact between the Huston conglomerate and Balmer mafic metavolcanic rocks. An additional strong to very strong anomalous trend has been identified on the south grid.
The technical information presented in this news release has been reviewed and approved by Robert W. Schafer, QP, PGeo, a director of Trillium Gold Mines, as defined by National Instrument 43-101.
About Trillium Gold Mines Inc.
Trillium Gold Mines is a British Columbia-based company engaged in the business of acquisition, exploration and development of mineral properties located in the highly prospective Red Lake mining district of Northern Ontario.
Disclosure and caution
Completion of the transaction is subject to a number of conditions, including TSX Venture Exchange acceptance. The transaction cannot close until the required conditions are satisfied and required approvals are obtained. There can be no assurance that the transaction will be completed as proposed or at all. Trading in the securities of the company should be
considered highly speculative.
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