(TheNewswire)
January 9th, 2017 / TheNewswire / Saskatoon, SK-Canadian Platinum Corp. ("CPC" or the "Company"-TSXV:CPC) is pleased to announce that it has entered into a Sale and Purchase Agreement to acquire a 70% working interest in the Cook Gold Project in Humboldt County, Nevada, USA, from a private Nevada corporation (the "Seller").
Consideration for the purchase is 50 million common shares of CPC to be issued upon the transaction closing, subject to regulatory approvals and subject to any terms and conditions imposed by the regulatory authorities regarding share issuance. There are no finder's fees associated with the transaction.
The Seller will retain a 30% interest carried to completion of a feasibility study suitable for project financing. There are no work commitments, but the Company does commit to keep the mineral claims in good standing by making the required annual fee payments to the Bureau of Land Management and the local county. There is an Area of Mutual Interest extending 5 miles from the current claim boundaries. The property is also subject to a 2.5% Net Smelter Royalty in favour of Arm's Length third parties.
The Seller is a Non-Arm's Length Party to the Company as the Seller is controlled by related parties owning more than 10% of the issued and outstanding shares of the Company.
For the purposes of providing information related to the Cook Gold Project, the Company is relying on historical information. All information has been derived from historical geological reports and has not been verified.
The Project
The Cook Gold Project consists of 88 lode claims covering 7.4 sq km and located 100 km northwest of Winnemucca, Nevada. The property is accessible year round by all-weather road and four wheel drive vehicle.
Geology
The project area is predominately underlain by Permian intermediate volcanic rocks with a small area of Jurassic limestone in the northeast part of the property. Regionally, granitic intrusions are also evident. The area has undergone extensive folding and faulting. Breccia zones occur along fold axes and at fault-fold intersections.
Mineralization
There is extensive gold and silver mineralization across the property, with historic assay results from sampling old mine workings and surface outcrops outlining a corridor of higher grade results with a strike length of 2,100 metres and width of 600 metres. The gold and silver mineralization is often, but not always, associated with quartz in visible veins, and often within fault-breccias. Copper oxide staining is abundant and copper sulfide minerals, as well as galena, have been identified.
Historic Work
There are 5 historic mine workings on the property with unknown production. These underground workings were shallow and focused on near-surface oxidized mineralization.
There is very little evidence that any detailed exploration has been carried out on the property, other than surface and limited underground sampling. There are no records of, nor field evidence for, any detailed drilling on the property.
The surface sampling over the property resulted in identifying significant gold and silver mineralization over a widespread area. Some results reported in historical geology reports are:
1983-Sampling carried out in the vicinity of old mine workings included the following assays:
-------------------------------------------------- |Location/Sample |Sample|Au|Au|Ag |Ag| | |Type|(g/t)|(opt)|(g/t) |(opt)| |------------------------------------------------| || ||| || |------------------------------------------------| |Adit 1 | ||| || |------------------------------------------------| |Mine dump|Grab|15.01|0.44 |83.99 |2.45 | |------------------------------------------------| |Vein outcrop|Grab|42.06|1.23 |657.15|19.19| |------------------------------------------------| |Adit 2 | ||| || |------------------------------------------------| |Mine dump|Grab|46.96|1.37 |26.40 |0.77 | |------------------------------------------------| |2ndmine dump|Grab|23.52|0.69 |10.63 |0.31 | |------------------------------------------------| |Adit 3 | ||| || |------------------------------------------------| |Mine dump|Grab|41.00|1.20 |21.25 |0.62 | |------------------------------------------------| |Sample pit |Grab|25.02|0.73 |99.07 |2.89 | |------------------------------------------------| |Adit 4 | ||| || |------------------------------------------------| || ||| || |Underground-3.7m|Chip|19.06|0.56 |239.96|7.01 | |width|||||| |------------------------------------------------| |Near adit|Grab|21.39|0.62 |11.31 |0.33 | --------------------------------------------------2004-Nevada Pacific Gold Ltd. carried out an extensive surface sampling program over the project area. They collected 101 samples for assay. Reporting only results for gold, 43 samples assayed over 1 g/t (.03 opt), 27 samples over 5 g/t (0.15 opt), 19 samples over 10 g/t (0.29 opt) and 3 samples assayed over 34 g/t (0.99 opt). The top 10% of the samples assayed:
----------------------------------------- |Sample ID|Sample Type|Au (g/t)|Au (opt)| |---------------------------------------| |HG-2-91|Grab |38.89|1.136| |---------------------------------------| |HG-2-34|Grab |36.49|1.066| |---------------------------------------| |HG-2-101 |Grab |34.49|1.007| |---------------------------------------| |HG-2-9|Grab |29.09|0.849| |---------------------------------------| |HG-2-4|Grab |25.86|0.755| |---------------------------------------| |HG-2-83|Grab |22.30|0.651| |---------------------------------------| |HG-2-49|Grab |21.18|0.619| |---------------------------------------| |HG-2-84|Grab |19.99|0.584| |---------------------------------------| |HG-2-24|Grab |19.61|0.573| |---------------------------------------| |HG-2-21|Grab |19.31|0.564| -----------------------------------------2011-The most recent sampling was carried out by the Seller with assays indicating significant gold and silver mineralization across the property. As a result of this sampling program, 8 areas of significant mineralization were identified for further followup: 7 areas fell within the 2.1km X 0.6km main corridor and one area of significant mineralization was identified outside the corridor on the west side of the project area. This work program also gave the highest assay reported on the property to date: 74.82 g/t Au (2.18 opt). Significant results are:
----------------------------------------------------------- |Sample ID|Sample Type|Au (g/t)|Au (opt)|Ag (g/t)|Ag (opt)| |---------------------------------------------------------| |XK-8|Grab |23.46|0.69 |4.3|0.16 | |---------------------------------------------------------| |XK-14 |Grab |5.88 |0.17 |1.9|0.06 | |---------------------------------------------------------| |KXK-10|Grab |74.82|2.18 |46.7 |1.36 | |---------------------------------------------------------| |KXK-22*|Grab |1.95 |0.06 |114.3|3.34 | |---------------------------------------------------------| |KXK-25|Grab |19.57|0.57 |3.5|0.10 | |---------------------------------------------------------| |KXK-26|Grab |18.17|0.53 |2.6|0.08 | |---------------------------------------------------------| |KXK-27|Grab |12.33|0.36 |2.8|0.08 | |---------------------------------------------------------| |KXK-30** |Grab |22.54|0.66 |39.0 |1.14 | -----------------------------------------------------------*This sample also assayed 3.12% Cu
**This sample also assayed 3.58% Cu
Note that the above reported assay results come mostly from surface grab samples and therefore may not be representative of the actual mineralization hosted on the property.
Quality Assurance and Quality Control
The reported assays results for the 1983 and 2004 sampling programs come from historical geology reports and the original assay sheets from the assay laboratories were not available for review. Therefore quality assurance and quality control protocols related to the data cannot be verified.
For the 2011 sampling program, the sampling protocol cannot be verified, but the original assay data sheets were available for review and strict QA/QC protocol was followed for sample preparation and analyses. Samples were submitted to Bureau Veritas Mineral Laboratories USA-Inspectorate America Corporation, an ISO certified laboratory in Sparks, Nevada. Standards, blanks and duplicates were included in the sample stream on a regular basis. Analytical methods for Au and Ag were fire assay with atomic absorption finish and a gravimetric finish for Au assays over 10 g/t and Ag assays over 100 g/t. Cu assays over 10,000 ppm were analyzed by atomic absorption spectroscopy.
Summary
Management views this as a very prospective project with excellent potential for rapid advancement. Historic work, as well as more recent sampling, outline a mineralized corridor with significant gold and silver assay results. The project is within 50km of the Sleeper Mine which was operated by Amax Gold Inc. between 1986 and 1996. Ore reserves reported by Amax in 1987 were 3.4 million tons grading 0.376 opt Au (3.1 million tonnes grading 12.88 g/t) and a lower grade reserve of 44.8 million tons grading 0.021 opt Au (40.6 million tonnes grading 0.72 g/t Au). By 1996 the mill had processed 55 million tons (50 million tonnes) of ore producing 1.68 million ounces of Au and 2.33 million ounces of Ag. The mine is currently being put back into production by Paramount Gold Nevada Corp. who report a Measured and Indicated resource of 294.4 million tonnes (324.5 million tons) grading 0.36 g/t Au (0.01 opt Au) and 3.3 g/t Ag (0.096 opt Ag). The Sleeper Mine is located within the prolific Battle Mountain Eureka trend of gold deposits. This trend hosts several multi-million ounce deposits and over the last 30 years has produced more than 32 million ounces of Au from deposits in the trend. The Cook Gold Project area may well represent the northern extention of the Battle Mountain Eureka trend, but more work and analyses is necessary to make that determination.
Gary Billingsley, President, comments "To come across an available project with significant gold and silver mineralization over a wide area, in a prolific, mining friendly jurisdiction, is both encouraging and a wonderful opportunity for the Company. It's at the grassroots stage of development with great potential for advancement. This project increases our exposure to gold, on which we remain bullish, and helps round out our current portfolio of properties focused on copper, nickel, zinc and platinum."
Qualified Persons
The technical data in this news release have been prepared, reviewed, and approved by Gary Billingsley, PEng, PGeo, a qualified person under the terms of National Instrument 43-101.
About Canadian Platinum Corp.
Canadian Platinum Corp. is a Canadian-based resource exploration and development company with its head office in Saskatoon, SK. CPC is focused on the acquisition and development of a diversified portfolio of resource properties with an emphasis on platinum group elements, but including precious, base and strategic metals.
CANADIAN PLATINUM TRADES ON THE TSX VENTURE EXCHANGE UNDER THE SYMBOL "CPC".
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For further information:
Canadian Platinum Corp.
Gary Billingsley, President
Phone: 306-242-7363
Facsimile: 306-992-0729
www.canplats.ca
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