Stellar AfricaGold Initiates Due Diligence Field Program on Potential New Gold Acquisition in Morocco

2020-06-01 / @thenewswire

(TheNewswire)

Montreal – TheNewswire - June 1, 2020 - Maurice Giroux, VP Exploration and Chief Operating Officer of Stellar AfricaGold Inc., (TSXV:SPX) ("Stellar" or the "Company") announces that the Company has begun a due diligence field program in Morocco.

Stellar has previously announced its interest in acquiring new exploration projects in Côte d’Ivoire and Morocco, two geologically desirable yet underexplored mining jurisdictions. Since October, 2019 Stellar VP Exploration Maurice Giroux and director Yassine Belkabir have held numerous discussions with the Moroccan Office Nationale Des Hydrocarbures et Des Mines (“ONHYM”) in Rabat, Morocco which concluded with the February 25th, 2020 signing of a Confidentiality Agreement allowing Stellar to begin actively evaluating the potential of a gold and multi-elements project of interest in the Haut-Atlas region in Morocco.

A field visit by Stellar management and ONHYM representatives scheduled for the first week of March 2020 was cancelled due to Covid pandemic travel restrictions. That field visit would normally be followed by a due diligence exploration program by Stellar and, if that due diligence program returned positive results, the signing of a Definitive Agreement between ONHYM and Stellar for the acquisition, exploration and, if warranted, the future development of the property.

Although international travel restrictions have prevented Stellar’s Canadian management from participating in the site visit, Stellar is fortunate to have an in-country geological team available. This team, including experienced Moroccan geologists under the supervision of Stellar’s Moroccan director Yassine Belkabir, (also a Qualified Person as defined in the NI 43-101), and Stellar’s Special Advisor for Africa, Dr Ali Saquaque, of Marrakech Morocco, will conduct the proposed due diligence field program on the ONHYM project of interest.

The program, scheduled to start on June 6th, will consist of:

--Compilation and evaluation of an existing historical data base,
--Locate all known showings and old trenches described in data base
--Sample all gold showings described in data base reports, 100 samples assayed for gold and 20 samples multi-element assays are budgeted.
--Confirm the description of the mineralized structures.
--Evaluate geological potential for extending the historically identified mineralized zones.
--Geological prospecting of the project area to identify and map new structures.

The results of this program are expected by the end of June 2020 and if the results warrant will lead to the signing of a definitive acquisition agreement to between STELLAR and ONHYM.

ABOUT STELLAR AFRICAGOLD INC.

Stellar AfricaGold Inc. is a Canadian gold company with head office in Vancouver, BC and technical office in Montreal, QC. Stellar President John Cumming can be contacted at 604-618-4262 or by email at cumming@stellarafricagold.com.

The technical content of this press release has been reviewed and approved by Yassine Belkabir, MScDIC, CEng, MIMMM, a Stellar director and a Qualified Person as defined in NI 43-101.

On Behalf of the Board

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Maurice Giroux,

VP Exploration & COO

This release contains certain "forward-looking information" under applicable Canadian securities laws concerning the Arrangement. Forward-looking information reflects the Company’s current internal expectations or beliefs and is based on information currently available to the Company. In some cases forward-looking information can be identified by terminology such as "may", "will", "should", "expect", "intend", "plan", "anticipate", "believe", "estimate", "projects", "potential", "scheduled", "forecast", "budget" or the negative of those terms or other comparable terminology. Assumptions upon which such forward-looking information is based includes, among others, that the conditions to closing of the Arrangement will be satisfied and that the Arrangement will be completed on the terms set out in the definitive agreement. Many of these assumptions are based on factors and events that are not within the control of the Company, and there is no assurance they will prove to be correct or accurate. Risk factors that could cause actual results to differ materially from those predicted herein include, without limitation: that the remaining conditions to the Arrangement will not be satisfied; that the business prospects and opportunities of the Company will not proceed as anticipated; changes in the global prices for gold or certain other commodities (such as diesel, aluminum and electricity); changes in U.S. dollar and other currency exchange rates, interest rates or gold lease rates; risks arising from holding derivative instruments; the level of liquidity and capital resources; access to capital markets, financing and interest rates; mining tax regimes; ability to successfully integrate acquired assets; legislative, political or economic developments in the jurisdictions in which the Company carries on business; operating or technical difficulties in connection with mining or development activities; laws and regulations governing the protection of the environment; employee relations; availability and increasing costs associated with mining inputs and labour; the speculative nature of exploration and development; contests over title to properties, particularly title to undeveloped properties; and the risks involved in the exploration, development and mining business. Risks and unknowns inherent in all projects include the inaccuracy of estimated reserves and resources, metallurgical recoveries, capital and operating costs of such projects, and the future prices for the relevant minerals.

Neither the TSX Venture Exchange nor its 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.