Pacton Gold Further Increases its Land Position in Western Australia Pilbara by Acquiring Rights to Gold-Bearing Conglomerate Portfolio
VANCOUVER, Aug. 27, 2018 /CNW/ - Pacton Gold Inc. (TSXV: PAC) (OTC: PACXF) (the "Company" or "Pacton") is pleased to announce that it has entered into a binding letter of intent ("LOI") to acquire the conglomerate gold rights from Calidus Resources Limited (ASX: CAI) ("Calidus") over a portfolio of eight exploration licenses. The Gold Rights relate to material that overlies the basement rocks and that is formed of transported material. Specifically, this means the Fortescue Group conglomerates that overlie the Warrawoona Greenstone belt ("Conglomerate Gold"). The portfolio includes six granted exploration licenses and two exploration licenses under application for a total of 357.5 km2 (the "Property").
Highlights of the Transaction:
- Strategic portfolio of 6 granted exploration licenses and 2 exploration licenses under application (357.5 km2).
- Rights to explore and mine for any Conglomerate Gold on the Property.
- Directly adjacent to Haoma Mining's Marble Bar tenements where numerous nuggets have been recovered from conglomerates at the Just in Time deposit (Haoma report for quarter ended September 30, 2017).
- Calidus has recovered nuggets adjacent to a mapped conglomerate and has mapped various sulphidic conglomerates in the conglomerate gold rights area (Calidus 23 November 2017).
- Conglomerate Gold rights are part of the tenement package that Calidus is exploring that currently hosts the expanding Warrawoona gold project (Figure 3 below). Warrawoona's current global resource is estimated to be 10.5M tonnes @ 2.11g/t Au for 712,000 ounces of gold. (See details below.) .
- Calidus is embarking on a pre-feasibility study in the first half of 2019. If a standalone gold plant is built at Warrawoona, Pacton has a right to negotiate access on commercial terms following plant construction.
"Securing the conglomerate gold rights over this significant portfolio of tenements from Calidus further consolidates Pacton's position in the Pilbara region of Western Australia." commented Alec Pismiris, Interim President and CEO of Pacton.
The Conglomerate Gold rights encompass eight tenements that cover all known Mt Roe basalt occurrences on Calidus' tenements. In total, the tenements have 40 km of outcropping Mt Roe basalt that have seen limited exploration. Access is very easy with all outcrops being within a few kilometres of major roads, thereby allowing rapid access for Pacton.
The Marble Bar application lies along strike from Haoma Mining's Just in Time prospect, where the discovery of numerous gold nuggets was announced in Haoma's September 30, 2017 quarterly report.
The Callidus Warrawoona project is an orogenic deposit which is currently being aggressively drilled. Warrawoona's global resource is currently represented as 10.5M tonnes @ 2.11g/t Au for 712,000 ounces of gold. (Published by Calidus on December 17, 2017)
- the Klondyke Prospect has a current 2012 JORC Code compliant Inferred Resource of 9.9M t at 2.06g/t Au for 654,000 ounces, and includes 532,000 ounces in the Indicated Category;
- the Copenhagen Prospect has a current 2012 JORC Code compliant Inferred Resource of 180,000t @ 6.1g/t Au for 36,000 ounces;
- the Fieldings Gully Prospect has a current 2012 JORC Code compliant Resource of 0.4Mt @ 1.65g/t Au for 22,000 ounces;
LOI Terms
Under the terms of the LOI, which will be formalized by a definitive agreement among the parties, the Company will pay a non-refundable payment of CDN$10,000 and issue to Calidus or its nominees 7,000,000 common shares. The LOI includes a right to deferred compensation whereby Calidus may receive up to 3,000,000 additional common shares of Pacton on the first anniversary of completion of the transaction based on the 30-day VWAP of Pacton's shares on the date of such issuance.
This transaction is subject to the acceptance of the TSX Venture Exchange.
The Company also announces that Alfred Stewart has resigned as a director.
About Pacton Gold
Pacton Gold (TSXV: PAC) (OTC: PACXF) is a well-financed Canadian junior with key strategic partners focused on the exploration and development of conglomerate-hosted gold properties located in the district-scale Pilbara gold rush in Western Australia. The Company recently raised approximately $5.5 million, currently controls the third largest conglomerate-hosted gold property portfolio totaling in excess of 2,500 km2, and continues to aggressively review additional accretive acquisitions.
The technical content of this news release has been reviewed and approved by Peter Caldbick, P.Geo., a director of the Company and a Qualified Person pursuant to National Instrument 43-101. The qualified person has not yet verified the data disclosed, including sampling, analytical, and test data underlying the information or opinions contained in the written disclosure.
On Behalf of the Board of Pacton Gold Inc.
Alec Pismiris
Interim President & CEO
This news release may contain or refer to forward-looking information based on current expectations, including, but not limited to the Company acquiring the Conglomerate Gold rights, the prospect of the Company achieving success in exploring the Property and the impact on the Company of these events, including the effect on its share price. Forward-looking information is subject to significant risks and uncertainties, as actual results may differ materially from forecasted results. Forward-looking information is provided as of the date hereof and we assume no responsibility to update or revise such information to reflect new events or circumstances. References to other issuers with nearby projects is for information purposes only and there are no assurances the Company will achieve similar results.
Neither TSX Venture Exchange, the Toronto Stock Exchange nor their Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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SOURCE Pacton Gold Inc.
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